Suchergebnisse

Charles Blahous, one of the nation's foremost retirement security experts, explains the origins and dangers of current underfunding in our single-employer defined-benefit pension system and outlines the options for solving the problem and preventing the next taxpayer-financed bailout. He provides a tutorial on the basic workings of pension law, reviews the recent history that led to the worsening condition of the pension insurance system, and suggests a range of reforms to improve the system's operation and to resolve the projected shortfall.

Background: With the rapid population aging, the payment crisis of China's pension insurance fund is increasing yearly. The government adjusts fertility policy to alleviate population aging and improve the solvency of pension insurance fund. On January 1, 2016, China's fertility policy was adjusted from 'selective two-child policy' to universal two-child policy. Methods: This paper establishes actuarial models to analyze how fertility policy adjustment influences the pension insurance fund. Results: (1) if the 'one-child policy' were still employed, the accumulated deficit of pension insurance fund would appear in the year of 2076; (2) if all couples that satisfy the rules of 'selective two-child policy' bear the second child, the time of accumulated deficit of pension insurance fund would be postponed by about 9 years; (3) after implementing the universal two-child policy, the time of accumulated deficit of pension insurance fund would delay under different situations of fertility intentions, if more than 54% of the qualified couples bear a second child, the accumulated deficit of pension insurance fund would not appear before 2090. The above conclusions have passed the sensitivity tests. Conclusion: Therefore, 'two-child policy' can alleviate the payment pressure of pension insurance fund. If the government wants to solve the payment crisis of pension insurance fund, fertility intentions should be improved.

Testimony issued by the Government Accountability Office with an abstract that begins "More than 34 million workers and retirees in over 29,000 single-employer defined benefit plans rely on a federal insurance program managed by the Pension Benefit Guaranty Corporation (PBGC) to protect their pension benefits. However, the single-employer insurance program's long-term viability is in doubt, and this may have significant implications for the federal budget. In fiscal year 2004, PBGC's single-employer pension insurance program incurred a net loss of $12.1 billion, and the program's accumulated deficit increased to $23.3 billion. Further, PBGC has estimated that it is exposed to almost $100 billion of underfunding in plans sponsored by companies with credit ratings below investment grade. This testimony provides GAO's observations on the nature of the challenges facing PBGC and why it is preferable for Congress to act sooner rather than later. This testimony also notes the broader context in which reform proposals should be considered and the criteria that GAO has suggested for reform."