Public Institutions Pension Actuarial Replacement Rate Model And Its Quantitative Simulating Analysis

The level of the pension replacement rate is the key to the reform of public institutions.By considering the given conditions,this paper employs an actuarial model to analyze China's Public institutions pension system. The optimal replacement rate depends on the level of same as to pay,pension adjustment rate and the age of retirement. It is found that the pension replacement rate is obviously lower in high-income groups,and the replacement rate in low-income groups is too high. Under the framework of current policy,representative Employees gets at the rate of 73% in pension replacement rate,while those with low income replacement rate may be as high 156%. Thus,the level of same as to pay should be based on its own wages,and pension adjustment factor should not be high,either. Instead,and a multi-channel for supplementary pension insurance should be established.