Application of Mathematical Model in Pension: System Reform for Retired Employee in Enterprise

In this paper, we describe the formatting guidelines for ACM SIG Proceedings. In this paper, the reform of the pensions system for retired workers in Chinese enterprises is studied by means of mathematical modeling. Firstly, the paper analyzes the average wage of workers in Shandong Province since 1978, which is rising as the time goes by using the statistical data and the Matlab software, combined with relevant knowledge of economics. The Malthus and Logistic models were successively adopted as empirical formulas for regression analysis, so as to obtain a more accurate prediction model. And the annual average wage of workers from 2019 to 2040 is predicted by using this model. Then, taking a certain enterprise as an example, a mathematical model is set up to calculate the pension substitution rate and the gap of the pension fund of the enterprise staff in all kinds of situations, and to give the age when the payment of the pension is in balance with the earnings. Finally, some effective measures for the government are given by using the model in order to achieve the target of 58.5% of the basic old-age insurance in the future and maintain the balance of income and expenditure of the pension insurance fund.