Evaluation on the Sustainability of Urban Public Pension System in China

Zhao, Qun; Mi, Haijie

doi:10.3390/su11051418

Cited by 22 publications

(19 citation statements)

References 13 publications

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“…This has led to a situation where many workers are not, in practice, covered and where social insurance contributions are paid on the basis of wages that are lower than those actually being paid. In practice, in many areas the real contribution rate (contributions as a percentage of earnings) has been much lower than the headline 20 per cent (Zhao and Mi, 2019).…”

Section: Population Ageing and The Urban Employees’ Pension Programmementioning

confidence: 99%

The sustainability of China’s Urban Employees’ Pension Programme: A case of getting old before getting rich?

Cousins

2021

Int Social Security Review

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This article examines the sustainability of China’s Urban Employees’ Pension Programme – the main component in China’s overall old‐age support system. It looks at the sustainability of the programme generally and, in particular, at case studies of two areas (Tianjin municipality and Guangxi province) to highlight both the extent of regional variations and the common challenges facing Chinese policy‐makers. It discusses a number of key issues that should assist policy‐makers to address the challenge of population ageing. It concludes that the challenge facing China is no more severe than that already faced by other countries in Europe and Asia. Moreover, the ageing of the population is not uniform across the regions of China. Consequently, those areas where the demographic shift is more advanced will provide some opportunity for policy experimentation. Given the experience to date of slow progress on various aspects of pension policy reform, the article suggests that it seems unlikely that paradigmatic change will be significant. Nonetheless, the study suggests a range of parametric policy measures that China should consider. The challenge facing China’s policy‐makers is to ensure that China gets old and rich at the same time.

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Section: Population Ageing and The Urban Employees’ Pension Programmementioning

confidence: 99%

The sustainability of China’s Urban Employees’ Pension Programme: A case of getting old before getting rich?

Cousins

2021

Int Social Security Review

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“…According to the methodology of the World Bank [46] and techniques proposed in [13,47,48], when assessing the pension system efficacy, replacement rates (Replac), coverage (Cover), and load (Load) coefficients are widely used. The replacement rate is considered as an indicator of the ratio of the pension to the previous income/earnings of the pension recipient.…”

Section: Datamentioning

confidence: 99%

The Efficacy of the Retirement Pension Provision System: Modeling, and Assessing of the Case of Kazakhstan

Junusbekova

Zhaumitova

2020

Journal of Open Innovation: Technology, Market, and Complexity

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This research is aimed at developing a methodology for assessing the efficacy of a macroeconomic model of the Kazakhstani pension provision system. A hierarchy of indicators of the pension system efficacy is built using the graph method. The representativeness of these indicators is confirmed by using expert assessment and factor analysis. A multi-factor assessment model is built using an additive convolution of the normalized values of the 2014–2019 resulting indicators with a breakdown by regions, regarding the coefficients of their significance. A regression model is developed to show the dependence of the pension system efficacy on the share of the accumulative system in the structure of retirement scheme financing. The optimal part of the accumulative system amounting to 79.5% of the total system is determined to be the level at which the pension system efficiency is maximized. A neural model for predicting the pension system efficacy under the influence of labor market indicators is built. The size of the minimum required annual payroll deductions from the wages of persons working according to the accumulative system is calculated depending on the length of service; this minimum size ensures a replacement rate of 40% with regard to the optimal ratio of the accumulative and solidarity pension systems. These findings will be useful to state bodies when developing and clarifying directions for reforming the pension system in Kazakhstan.

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“…26 issued by the State Council in 1997, City X established basic old-age social insurance for urban employees to replace the traditional urban retirement system. The newly constructed pension system, which is a combination of the Pay-As-You-Go social pooling part and the personal account, originally covered employees in state-owned enterprises [30]. Since 2005, guided by the No.…”

Section: Institutional Characteristics Of the Basic Old-age Pension Smentioning

confidence: 99%

Adequacy Analysis of the Basic Old-Age Pension System Based on Local Administrative Data in China

Zhao

Wang

2019

Sustainability

Self Cite

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There is no consensus on the judgment of the adequacy status of the old-age pension benefit in China at present. Therefore, clarification of various types of indicators and benchmarks of pension adequacy is urgently needed. According to the theoretical development of pension adequacy, this paper offers a comprehensive analysis of the benefit level of basic pension from the perspectives of poverty alleviation, income substitution, and financial sustainability. The calculation results based on local administrative data show that the current pension benefit in urban China is unbalanced: on the one hand, the average pension level of self and flexible employees cannot keep track of the local average consumption level or even the relative poverty standard in particular years and the individual replacement rates for a few nonstandard employees are less than the minimum standard of 40% set by the International Labor Organization, which means the pension benefit performs poorly in terms of consumption smoothing. On the other hand, the lifelong pension rights are much higher than the lifelong contribution obligations for new retirees. Under the trend of population ageing, the extremely high benefit–cost ratio means that the current retired generation is eroding the welfare of the current working generations, and the long-term financial sustainability of the pension system is facing challenges. In the future, in order to improve the benefit level of the basic old-age pension system in a sustainable way, we need to increase the average and individual replacement rates and reduce the benefit–cost ratio by consolidating contribution bases and delaying the number of contribution years.

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Evaluation on the Sustainability of Urban Public Pension System in China

Cited by 22 publications

References 13 publications

The sustainability of China’s Urban Employees’ Pension Programme: A case of getting old before getting rich?

The sustainability of China’s Urban Employees’ Pension Programme: A case of getting old before getting rich?

The Efficacy of the Retirement Pension Provision System: Modeling, and Assessing of the Case of Kazakhstan

Adequacy Analysis of the Basic Old-Age Pension System Based on Local Administrative Data in China

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