Pension Insurance Research Articles

Pension insurance contribution rate and corporate investment efficiency

This study identifies the pension insurance contribution rate as an important factor affecting corporate investment efficiency. Empirical research findings reveal a significant crowding-out effect between the pension insurance contribution rate and corporate investment efficiency. That is, the higher the pension insurance contribution rate, the more pronounced the crowding-out effect on corporate investment efficiency. Further analysis of heterogeneity indicates that the crowding-out effect of the pension insurance contribution rate on corporate investment efficiency is more pronounced in non-state-owned enterprises and in enterprises with higher financing constraints.

Institutional Pension Insurance in Sustainable Development of Urban–Rural Intergenerational Support

Parental downward support plays an important role in urban and rural sustainable development. It is of great significance to study parental downward transfers and their motivation. However, there is no consensus on the motivation behind parental downward transfers in China. This study examines the timing and monetary impacts of social pensions on parental downward transfers and assesses the motivations behind them. We found that pension insurance encouraged rural parents to provide time and monetary support to their children. Unlike rural parents, pension insurance increased the monetary support of urban parents but inhibited their time support. Because of the higher income level of urban parents and the better organization of the domestic service market, parents have the motivation and conditions to reduce their time support and increase monetary support. Our findings highlight the importance of parental downward transfers in urban and rural sustainable development.

A Comparative of Social Security for Non-Standard Employed Persons in China and the United Kingdom

The different protections for flexible employment in the UK and the different forms and tendencies of flexible employment in China have resulted in different policies and forms of tendency. The essay focuses on comparing the social security of flexibly employed people and is divided into two parts to examine the differences. The first part: China uses the dichotomy of labour relations for non-standard employment in most cases. The UK has more comprehensive laws and adopts more lenient laws to provide protection for workers, and basic rights do not depend on long-term regular labour relations. The second section compares the different social security situations in the two countries. The Chinese section focuses on the trend of national pension insurance to promote universal coverage and the construction of occupational injury protection in today's society. The UK section focuses on the promotion of non-standard employment through the pension insurance programme and places greater emphasis on social assistance in social security. These comparisons can serve as a reference for China.

Forecast of the Volume of Expenses for the Payment of Old-Age Insurance Pensions in the Russian Federation until 2035

The article is devoted to the assessment of the impact of demographic processes on the volume of expenses for the payment of old-age insurance pensions in the Russian Federation. The purpose of the study is to make a forecast of the volume of expenses of the Russian Social Fund budget for the payment of insurance old-age pensions for the period up to 2035, taking into account population fluctuations in 3 scenarios: optimistic, probable and pessimistic. The relevance of study is due is due to the influence of demographic processes on the pension system of the Russian Federation. The results obtained are new, they can be used in the practical activities of the state authorities of the Russian Federation, in the conduct of scientific research and in the educational process, etc. The authors used a multifactorial dynamic model in the form of a system of stochastic differential equations with parameters, and numerical calculations were carried out on a discrete approximation of this model. The authors revealed that with a pessimistic version of the population forecast, the volume of budget expenses of the Pension and Social Insurance Fund of the Russian Federation for the payment of insurance pensions (excluding early appointment) for 2023–2035 will increase by 56.67% (which in monetary terms is 4.22 trillion rub.); with a probable one — by 60.39% (which in monetary terms is 4.50 trillion rub.); with a pessimistic one — by 66.02% (which in monetary terms is 4.93 trillion rub.). It is important to note that any of the forecast, due to the population decline in the forecast period, assumes an increase in the volume of expenses for the payment of insurance pensions at rates below inflation (the latter, according to the minimum estimates of the authors of the article, will amount to 74.76%).

Civil and legal regulation of investment activities of life insurance companies

The paper is devoted to some features of the investment activity by life of insurance companies, as well as their civil law regulation. Attention is focused on the fact that life and health insurance is a direction of non-state pension provision in the context of pension reform in Ukraine. A range of questions from potential consumers of insurance services in the field of life and health insurance regarding the investment activity of insurers, methods and means of placing investments, their legal regulation, guarantees of the integrity and safety of accumulation under the life insurance contract has been determined. Scientific approaches to the understanding of investments in general, and the peculiarities of investment activity by life insurance companies have been studied. The norms of national legislation, international financial reporting standards regulating long-term life insurance contracts, including those with an investment component, were analyzed. The civil law procedure for investing funds raised by insurance companies under long-term life insurance contracts and investment life insurance contracts is defined. Examples of investment activities of insurance companies that are leaders in the life insurance market are given. It is indicated that according to statistical data, as of January 1, 2024, 12 life insurance companies are registered and operating in Ukraine. There are life insurance companies provide services exclusively in the field of long-term life insurance, health and pension insurance. Currently, only 8 insurance companies are actively working. It was concluded that financial instruments such as securities in the form of bonds, bank deposits and investment (income) real estate are most popular among life insurance companies for investing.

The impact of green and low carbon agricultural production on farmers’ income in minority areas: a case study of Y Town, Zhijin County, Guizhou Province

Developing green and low-carbon agriculture is an important and effective way to promote farmers’ income growth. Given the country’s “dual carbon” goal, the study of the impact of green and low-carbon agriculture on the income of farmers in ethnic minority areas is crucial for China to achieve the goals of socialist modernization and common prosperity. Taking Y Town, Zhijin County, Guizhou Province as an example, this paper uses the OLS regression method to empirically study the impact of green and low-carbon agricultural production methods on the income of farmers in ethnic minority mountainous agricultural areas based on the field survey data of 881 farmers. The regression results indicate that there is a positive correlation between green and low-carbon agricultural production and the household income levels of farmers; adopting green and low-carbon agricultural production technologies can effectively promote the growth of farmers’ household income. In addition, education level, health status, and the new rural social pension insurance have all had a significant effect on the income of rural households, however, due to the difficulty in establishing trust relationships, agricultural service outsourcing has reduced the household income level of farmers. As an example, the land transfer behavior in Y Town has no significant effect on increasing farmers’ incomes. Finally, it is recommended to increase fiscal and financial support as well as effectively enhancing farmers’ policy awareness and perception of green and low-carbon agricultural production technologies by improving farmers’ general trust and institutional trust by strengthening farmers’ agricultural education and skills training while cultivating technology-based farming. At the same time, it is necessary to break the geographical restrictions on land transfer scale and achieve moderate-scale land management while promoting the use and adoption of green and low-carbon agricultural production technologies, thereby improving agricultural production efficiency and product quality, and increasing the sustainable growth of farmers’ income. The main contribution of this study is to expand the research scope of green and low-carbon agriculture to ethnic minorities and mountainous agricultural areas.

CLUSTERING OF EU MEMBER STATES BY THE LEVEL OF DEVELOPMENT OF INSTITUTIONAL INVESTOR ASSET MANAGEMENT

The financial landscape within the European Union is characterized by a significant disparity in the development of institutional investor asset management across its member states. Institutional investors, such as pension funds, insurance companies, and investment trusts, are vital in shaping financial markets and influencing economic stability. This study aims to fill the gap in the existing literature by examining the grouping of European Union member-states. The research focuses on examining key attributes, trends, and performance indicators of institutional investor asset management across various EU member-states. It utilizes data from 2017 to 2022, reflecting the average values of financial assets held by institutional investors as a percentage of Gross Domestic Product (GDP). This data provides a critical perspective on the investment landscape within the EU, particularly focusing on investment funds and insurance corporations. A notable observation from the data is the significant variance in the financial assets to GDP ratio among EU countries, with Denmark and France showing exceptionally high ratios, indicating a substantial role of institutional investments in their economies. In contrast, Lithuania and Greece demonstrate much lower ratios. This disparity is further analyzed through cluster analysis, grouping EU member-states into five clusters based on their asset management profiles. The clusters reveal distinct patterns in the distribution and development of asset management across the EU. Countries like Denmark and France, with highly developed financial markets, contrast sharply with those like Lithuania and Greece, which have less mature markets. The study highlights the influence of various factors such as economic structure, regulatory environment, and cultural attitudes towards savings and investment on these disparities. The study suggests that future research should focus on developing comprehensive policy recommendations, taking into consideration the distinct characteristics of each cluster to promote balanced economic growth and stability within the EU.

Современные направления реформирования пенсионных систем

With all the variety of existing pension models in the world, most of them belong to the group of solidarity system and involve a significant amount of redistribution of resources. Accumulative systems mainly complement, rather than replace distributive pension systems, especially when forming so-called multi-level models. The article analyzes some controversial issues of modern parametric pension reforms, the ratio of insurance and non-insurance elements of systems, the impact of the introduction of individual conditional saving accounts, rules for the use of pension loans, mechanisms for blocking early retirement. Particular attention is paid to the analysis of including workers with non-standard forms of employment in the pension insurance system and it is concluded that by enabling certain categories of non-standard workers to independently sole issues of their material security in old age, it is necessary to take into account the financial cost of this policy for the state.

Pathways to retirement in West Germany: Does divorce matter?

The aim of this paper is to explore how divorce is linked to pathways to retirement in West Germany and to understand whether and how patterns are gendered. Using German pension insurance data, I employ sequence and cluster analysis to map and group pathways to retirement of women and men who retired in 2018. Pathways to retirement are defined based on monthly pension insurance histories from age 50 to 65. I find nine distinct pathways to retirement, ranging from unemployment to stable low to high income pathways and to an early retirement pathway through the reduced-earnings-capacity pension, the latter representing 9.3% of the sample. Based on multinomial logistic regression models, I analyse how marital status, distinguishing between divorced and (re)married, was related to different pathways to retirement. The results show that divorced people were more likely than married people to retire through indirect and unstable pathways to retirement characterised by early exit from the labour market and receipt of reduced-earnings-capacity pensions and/or unemployment benefits. Whereas the relationship between divorce and pathways to retirement seemed to be overall unfavourable for men, the results for women are more ambiguous. Divorced women were also more likely to retire through a stable high-income pathway than married women. Nevertheless, the results suggest that divorce is associated with an early retirement pathway through the reduced-earnings-capacity pension for both women and men.

Developing the Voluntary Pension Fund at Enterprises in Vietnam from the Perspective of Employers

The paper studies the factors affecting the development of the voluntary pension fund system at enterprises from the employers' perspective. Through a survey of 37 enterprises, the paper clarifies employers' awareness of the importance of voluntary pension funds, the need for enterprises' pension funds, and their willingness to invest in the voluntary retirement fund. The findings show that 78.83% of businessmen believe that developing a voluntary pension fund system is necessary because voluntary pension insurance is a way for employees to protect themselves and their families against risks. 100% of business owners want a voluntary pension fund based on an agreement between the enterprises and employees, while 60% of employers prefer the blended mechanism with government supervision and support. Regarding the level of investment in social insurance and other retirement regimes, 68% of enterprises spend less than 10% of total costs to implement the program; 30% of enterprises use from 10% to 20% of total costs to implement the program. Employers show their prudence when considering a voluntary pension fund at their enterprises. More than 60% of employers concern about the fund security, 24% considers the impact of macro economic factors on the fund performance.

Identifying and prioritizing factors influencing the social insurance contribution of unorganized workers

PurposeThe purpose of this study is to explore and prioritize the factors that determine the social insurance contribution of unorganized workers.Design/methodology/approachA two-stage procedure was adopted to recognize and prioritize factors influencing the social insurance participation of unorganized workers: first, crucial factors influencing unorganized workers’ contribution towards social insurance were identified by employing exploratory factor analysis, and in the second phase, the fuzzy analytical hierarchal process was applied to rank the specified criteria and then sub-criteria by assigning weights.FindingsFour broad factors were identified, namely, economic, political, operational and socio-psychological, that significantly influence unorganized workers’ contribution towards social insurance. Later findings revealed that the prime influencer of unorganized workers’ contribution is employment contracts followed by average earnings, delivery of quality services, eligibility and accessibility.Practical implicationsThe research findings are feasible as the basic propositions are based on real-world scenario. The identification and ranking of factors have the potential to be used as a checklist for policymakers when designing pension and social insurance for unorganized workers. If it is not possible to consider all, the criteria and sub-criteria assigned upper rank can be given priority to extend pension coverage for a large group of working poor.Social implicationsThe key factors driving social insurance contributions have been highlighted by studying the stakeholders’ perceptions at a micro level. By comprehending the challenges, there is a possibility of covering a large section of the working poor into social insurance coverage.Originality/valueThis paper is believed to be one of its kinds to acknowledge a combination of factors that determine the contribution of unorganized workers to social insurance. This study is an empirical investigation to prioritize the essential drivers of social insurance participation by low-income cohorts in the context of emerging countries. The present approach of employing fuzzy logic has also very limited use in social insurance literature yet.

Study on the Fertility Intention of Wenzhou Residents and Its Influencing Factors under the Background of the Three-Child Policy

The continuing decline in fertility and population ageing are major social issues facing the world today. On the one hand, population aging leads to a decrease in the total workforce and a decline in productivity, and with the increase in the proportion of elderly people, the pressure on social security, such as pension insurance and medical resources, will gradually increase. On the other hand, the decline in fertility rate means that the supply of new labor force will be insufficient. Therefore, a large number of countries have implemented various fertility policies to encourage the public to increase the fertility rate, so as to solve the negative impacts of low fertility rate and population aging on social development. This paper stands on the background of the three-child policy and investigates the fertility intention of Wenzhou residents and its influencing factors. Taking Ouhai District of Wenzhou as an example, this paper investigates the fertility situation of Ouhai residents, fertility intention, and the influencing factors of fertility intention from 1980 to 2023, and puts forward the suggestions to promote the fertility intention of residents in Ouhai District. It is expected that this paper can provide reference value for relevant government departments to effectively promote the three-child policy, so that more families are willing to continue to give birth, and effectively solve the problems of population aging and low fertility rate that China is currently facing.

Does a reduction in the pension insurance contribution ratio promote firm productivity? Evidence from a quasinatural experiment in China

AbstractReducing the burden of social security contributions for firms, unleashing their vitality, and enhancing their total factor productivity (TFP) are crucial measures in China's pursuit of sustainable and high‐value‐added growth. This article utilizes three reductions in the corporate pension insurance contribution ratio in China as a quasi‐natural experiment to construct a treatment intensity DID (Difference‐in‐Differences) model. By utilizing data from listed companies between 2013 and 2020, this study empirically examines the impact of reducing the pension insurance contribution ratio on firms’ TFP while identifying the underlying mechanisms. The findings of the study are as follows: First, the policy exhibits a significant positive effect on corporate TFP in China. Second, this policy's contribution primarily stems from stimulating firms to increase their employment of highly skilled labour, elevating wages for ordinary employees, and enhancing firm investment efficiency. Lastly, the analysis of heterogeneity demonstrates that the policy's positive effect is more pronounced among non‐state‐owned enterprises, small and medium‐sized enterprises, and labour‐intensive enterprises. This study provides empirical evidence for evaluating the contribution reduction policy and serves as a policy reference for endeavours to deepen the reform of the pension insurance system and enhance pension insurance fund budget management.

Reformoptionen der gesetzlichen Rentenversicherung

Abstract Demographic change and thus the ageing of the population is progressing rapidly in Germany. A reform of the statutory pension insurance (GRV) is therefore becoming increasingly urgent, with the German government already promising in its 2021 coalition agreement that “pensions must be reliable and adequate”. Most recently, the German Council of Economic Experts presented several reform options in its annual report, which are intended to ensure adequate old-age provisions with sustainable nancial viability. However, these proposals were not without objections within the Council. The question therefore arises as to how the statutory pension scheme can be reformed to ensure that adequate and a ordable pensions are nanced in a stable and sustainable manner.

“Swimming Against the Current” of Demutualizations in the 1990s and 2000s: The Case of the Private Statutory Pension Insurance Sector in Finland

The global insurance industry of the 1990s and 2000s witnessed a significant wave of demutualizations often regarded as a world-wide phenomenon. In this article, we describe the case of the Finnish private statutory pension insurance sector and the reasons why it eventually “swam against the current” by explicitly deciding to emphasize mutuals —that still today account for 96% of the particular sector in Finland and has ensured that the almost 150 billion euros of pension assets has stayed in control and in use of the Finnish people, organizations and entrepreneurs. As an empirical dataset, we analyze two interviews of high-level experts who participated in the working group drafting the guidelines for the Finnish Act on Pension Insurance Companies.Received: 28 April 2023 Accepted: 20 December 2023

On the Determination of the Level of Basic Pension Insurance for Urban and Rural Residents and the Adjustment Program

With the increasing aging of the population, the key issue to optimize the basic pension insurance for urban and rural residents is not to bring excessive financial burden while improving the level of treatment level. Starting from three aspects: the dynamic adjustment mechanism of basic pension oriented to meet the needs of survival, the adjustment mechanism of contribution grade, the subsidy mechanism of contribution ratio and the long-term basic pension determination mechanism, this paper designs the optimization scheme of financial subsidy mode, and establishes the actuarial model and the financial moderate burden coefficient model to evaluate the effectiveness and feasibility of the scheme. The calculation results show that the optimization of financial subsidies has significantly improved the ability of urban and rural resident insurance pensions, and the central and local finances have a certain ability to bear the steady increase of basic pensions and contribution subsidies.

Characterization of immigration in the Chilean Pension and Unemployment Insurance Systems

The levels of immigration recorded in Chile over the last few decades are unprecedented. Despite the magnitude of this phenomenon, the literature on immigration in Chile is scarce. Even though it is expected immigration has important effects on the Chilean labour market, there is not much historical neither systematic evidence available for a better understanding of the phenomenon. This can be mainly explained by the fact that related sources of information are limited and infrequent.This paper aims at describing the demographic and socio-economic characteristics of the immigrants’ formal working population in Chile (i.e. individuals working in the formal sector who by law contribute to the social security system), using administrative records of the Pension Systems and the Unemployment Insurance System, in addition to information provided by the Civil Registry and Identification Service on their nationality and country of origin.The results obtained show an exponential increase in new foreigners to the social security system over the last few years. Haitians and Venezuelans are the largest groups, representing 70% of the total number of new foreign affiliates to the Pension System in 2018. The average wage difference between Chileans and foreigners increased by over 600% during the 2010-2018 period, differing by almost USD 300 in 2018 in favor of Chileans. This difference deepens with higher wages. Finally, there is an important gender gap both for Chileans and foreigners (around 10% in 2018). The gender gap for foreigners has importantly decreased during the last decade reaching the relatively more stable, but still important, Chilean gender gap of around 10%. However, foreign women are in a much weaker relative situation than Chilean women when age, cohort and time effects are obtained.

Study on the Impact of Marital Status on Rural Elderly Pension Insurance

The marital status of elderly people in rural areas directly affects their health and cognitive status, and potentially affects their understanding and identification with rural pension insurance, affecting the scale and structure of rural pension insurance. This article takes Jilin Province as the research sample, adopts the fourth national survey data on the living conditions of elderly people in cities, and establishes an empirical model to analyze the relationship between the marital status of rural elderly people and their participation in pension insurance. The research findings indicate that individuals who have never been married have a positive impact on pension insurance; The marital status of widowhood has a positive impact on the elderly's pension insurance situation; Divorce has a positive impact on the elderly's pension insurance. The marital status of being married but not cohabiting has no significant impact on the elderly's pension insurance.

Live More Prosperously By Enjoying Old Age Using Pension Funds

In this research method I took a case study at PT. Taspen Surabaya is based on article 58 of Law Number 11 of 1992 concerning pension funds which explains that anyone is prohibited from intentionally causing the payment of an amount of money to the Pension Fund that deviates from the regulations and participating in transactions involving an increase in pension funds. PT. Taspen is an initial service before the customer recipient is confirmed as a Pension Fund recipient. In the articles that I have written, everything is based on case studies that I have conducted, namely using the interview method. The results and discussions show the organizational structure of PT. Taspen Surabaya as well as services provided to civil servants, including work accident insurance programs. This program includes protection against the risk of work accidents in the form of treatment, compensation, and disability benefits. In addition, a pension insurance (ENT) program is included, which is related to retirement age and death insurance.

Compulsory pension insurance investment policy in Georgia

An important factor of economic development in Georgia is the reform of mandatory pension insurance and its successful investment policy, which started in the country five years ago and is being successfully implemented to this day. Many countries were not able to implement the said reform voluntarily, and Georgia is no exception. The reform has already been able to maximize the number of participants in the pension scheme, create a significant pension assets and multi-billion dollar base of investment capital, and have yielded practical results, which are reflected in the number of beneficiaries, disbursed funds and investment returns. The investment policy reform of the mandatory pension system has a great social impact and is characterized by high public interest. But the challenge is that the implemented large-scale reform requires further deep analysis and the development of mechanisms for sustainable development, which is manifested by the risk management of pension insurance assets, investment policies and obtaining high returns on the pension assets of the participants of investment activities through diversified and financially safe, transparent and reliable investments, Considering the investment and liquidity objectives of the pension system and the reputational requirements for adherence to investment principles.