Optimization of Actuarial Model for Individual Account of Rural Social Pension Insurance

This paper firstly analyzes different payment methods of individual account and the pension replacement rate under the pension payment method. Results show that it will be more scientific and reasonable for the individual account of new rural social pension insurance to adopt the actuarial model of payment according to proportion of income and periodic prestation at variable amount. The Guiding Opinions on New Rural Social Pension Insurance sets forth individual account should be paid at fixed amount, and the insured voluntarily selects payment level as per criteria set by the State. The monthly calculation and distribution amount of pension is the total amount of individual account divided by 139. Therefore, it should start from continuation of policies and make adjustment of payment level in accordance with growth of per capita net income of rural residents. When condition permits, it is expected to realize transition to payment as per income proportion and periodic prestation at variable amount.