The phenomena of population ageing and the declining trend of birth rate have had a significant
impact on each country’s pension system and resulted in bankruptcy crisis. The primary school
teacher pension system is the first one to suffer this impact among the government sectors. We
explore the system’s behaviour with a system dynamics approach. The results show that the
financial crisis in the primary school teacher pension system in Taiwan is subject to the interaction
of system-internal and environmental variables. The simulations of policy reforms of changing
contribution rates and operating performance of the pension system are also discussed. This
study confirms that the system dynamics approach could support decision-makers in the public
context to adopt systemic policies that may strongly contrast with the current—and often
recurrent—strategies applied by the public context.
Relation:
Systems Research and Behavioral Science,31(1),159 - 172
