Work

The New Fertility Policy and the Actuarial Balance of China Urban Employee Basic Endowment Insurance Fund Based on Stochastic Mortality Model

Year: 2020

Type: article

Abstract: This study aims to investigate the impact of China’s new fertility policy on the actuarial balance of its Urban Employee Basic Endowment Insurance (UEBEI) fund, with stochastic mortality model included to address the longevity risk. Combined with the latest UEBEI policy, this paper constructs an actuarial balance model and introduces the growth rate of wage, the age of employment and the age of retirement, the rate of payment, the rate of replacement, the annual rate of pension adjustment, and the population in terms of age into the model, which arise from the rate of payment, average wage, and personal and social factors. This study uses the sixth population census data by age group and gender to employ empirical analysis. The sensitivity analysis of China’s basic pension insurance fund balance is made. It is concluded that the increase in the growth rate of wage caused by social factors, the increase of fund investment returns, the delay of retirement, and the increase in the fund collection rate are all conducive to the sustainability of the UEBEI fund.

Source: Mathematical Problems in Engineering

DOI: 10.1155/2020/3596384

Authors: Yuantao Xie, Xinzhu Zhang, Huijuan Lv, Xiaojing Guo

Institution: University of International Business and Economics

Language: English

Topic: Insurance, Mortality, Demography, Risk Management

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,550