Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective

Ming-Feng Hsie; Fang-Chen Kao; Justine Chang

doi:doi:10.11648/j.sjbm.20221001.13

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Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective

Ming-Feng Hsie, Fang-Chen Kao, Justine Chang

Published in Science Journal of Business and Management (Volume 10, Issue 1)

Received: 12 January 2022 Accepted: 28 January 2022 Published: 16 February 2022

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Abstract

Countries around the world use various forms of retirement systems to reduce elderly’s economic risks. The military retirement system is one of the most important welfare measures of Taiwanese military. Facing strong military threats, Taiwan has implemented a volunteer recruitment policy. With the increasing number of volunteer soldiers every year, the ratio of volunteer soldiers over entire miliary population has risen continuously. Volunteer soldiers can retire and start to receive pensions after they have served for 4 years. Therefore, the amount of pension contributions for volunteer soldiers is small, and the short payment time cannot allow the pension fund to obtain long-term compound interest effects. The impact on the pension fund cannot be ignored. Thus, the impact of volunteer soldiers’ pension on the overall cash flow of the pension fund has become the issue to be discussed in this study. The study uses systematic dynamics to explore the relevant factors that affect the cash flow of volunteer soldiers’ retirement funds and the causal interaction between the factors; construct a dynamic model of the cash flow evaluation of volunteer soldiers’ retirement funds; simulate and quantitatively analyze the results; and propose policy recommendations for improving the pension system for volunteer soldiers.

Published in	Science Journal of Business and Management (Volume 10, Issue 1)
DOI	10.11648/j.sjbm.20221001.13
Page(s)	13-19
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Retirement Fund, Volunteer Soldiers, System Dynamics

References

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APA Style

Ming-Feng Hsie, Fang-Chen Kao, Justine Chang. (2022). Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective. Science Journal of Business and Management, 10(1), 13-19. https://doi.org/10.11648/j.sjbm.20221001.13

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ACS Style

Ming-Feng Hsie; Fang-Chen Kao; Justine Chang. Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective. Sci. J. Bus. Manag. 2022, 10(1), 13-19. doi: 10.11648/j.sjbm.20221001.13

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AMA Style

Ming-Feng Hsie, Fang-Chen Kao, Justine Chang. Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective. Sci J Bus Manag. 2022;10(1):13-19. doi: 10.11648/j.sjbm.20221001.13

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@article{10.11648/j.sjbm.20221001.13,
  author = {Ming-Feng Hsie and Fang-Chen Kao and Justine Chang},
  title = {Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective},
  journal = {Science Journal of Business and Management},
  volume = {10},
  number = {1},
  pages = {13-19},
  doi = {10.11648/j.sjbm.20221001.13},
  url = {https://doi.org/10.11648/j.sjbm.20221001.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20221001.13},
  abstract = {Countries around the world use various forms of retirement systems to reduce elderly’s economic risks. The military retirement system is one of the most important welfare measures of Taiwanese military. Facing strong military threats, Taiwan has implemented a volunteer recruitment policy. With the increasing number of volunteer soldiers every year, the ratio of volunteer soldiers over entire miliary population has risen continuously. Volunteer soldiers can retire and start to receive pensions after they have served for 4 years. Therefore, the amount of pension contributions for volunteer soldiers is small, and the short payment time cannot allow the pension fund to obtain long-term compound interest effects. The impact on the pension fund cannot be ignored. Thus, the impact of volunteer soldiers’ pension on the overall cash flow of the pension fund has become the issue to be discussed in this study. The study uses systematic dynamics to explore the relevant factors that affect the cash flow of volunteer soldiers’ retirement funds and the causal interaction between the factors; construct a dynamic model of the cash flow evaluation of volunteer soldiers’ retirement funds; simulate and quantitatively analyze the results; and propose policy recommendations for improving the pension system for volunteer soldiers.},
 year = {2022}
}

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TY  - JOUR
T1  - Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective
AU  - Ming-Feng Hsie
AU  - Fang-Chen Kao
AU  - Justine Chang
Y1  - 2022/02/16
PY  - 2022
N1  - https://doi.org/10.11648/j.sjbm.20221001.13
DO  - 10.11648/j.sjbm.20221001.13
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 13
EP  - 19
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20221001.13
AB  - Countries around the world use various forms of retirement systems to reduce elderly’s economic risks. The military retirement system is one of the most important welfare measures of Taiwanese military. Facing strong military threats, Taiwan has implemented a volunteer recruitment policy. With the increasing number of volunteer soldiers every year, the ratio of volunteer soldiers over entire miliary population has risen continuously. Volunteer soldiers can retire and start to receive pensions after they have served for 4 years. Therefore, the amount of pension contributions for volunteer soldiers is small, and the short payment time cannot allow the pension fund to obtain long-term compound interest effects. The impact on the pension fund cannot be ignored. Thus, the impact of volunteer soldiers’ pension on the overall cash flow of the pension fund has become the issue to be discussed in this study. The study uses systematic dynamics to explore the relevant factors that affect the cash flow of volunteer soldiers’ retirement funds and the causal interaction between the factors; construct a dynamic model of the cash flow evaluation of volunteer soldiers’ retirement funds; simulate and quantitatively analyze the results; and propose policy recommendations for improving the pension system for volunteer soldiers.
VL  - 10
IS  - 1
ER  -

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Author Information

Ming-Feng Hsie

Department of Financial Management, National Defense University, Taoyuan City, Taiwan
Fang-Chen Kao

Department of Business Administration, National Chin-Yi University of Technology, Taichung City, Taiwan
Justine Chang

Department of Accounting, Chaoyang University of Technology, Taichung City, Taiwan

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Plain Text BibTeX RIS

APA Style

Ming-Feng Hsie, Fang-Chen Kao, Justine Chang. (2022). Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective. Science Journal of Business and Management, 10(1), 13-19. https://doi.org/10.11648/j.sjbm.20221001.13

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ACS Style

Ming-Feng Hsie; Fang-Chen Kao; Justine Chang. Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective. Sci. J. Bus. Manag. 2022, 10(1), 13-19. doi: 10.11648/j.sjbm.20221001.13

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AMA Style

Ming-Feng Hsie, Fang-Chen Kao, Justine Chang. Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective. Sci J Bus Manag. 2022;10(1):13-19. doi: 10.11648/j.sjbm.20221001.13

Copy | Download

@article{10.11648/j.sjbm.20221001.13,
  author = {Ming-Feng Hsie and Fang-Chen Kao and Justine Chang},
  title = {Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective},
  journal = {Science Journal of Business and Management},
  volume = {10},
  number = {1},
  pages = {13-19},
  doi = {10.11648/j.sjbm.20221001.13},
  url = {https://doi.org/10.11648/j.sjbm.20221001.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20221001.13},
  abstract = {Countries around the world use various forms of retirement systems to reduce elderly’s economic risks. The military retirement system is one of the most important welfare measures of Taiwanese military. Facing strong military threats, Taiwan has implemented a volunteer recruitment policy. With the increasing number of volunteer soldiers every year, the ratio of volunteer soldiers over entire miliary population has risen continuously. Volunteer soldiers can retire and start to receive pensions after they have served for 4 years. Therefore, the amount of pension contributions for volunteer soldiers is small, and the short payment time cannot allow the pension fund to obtain long-term compound interest effects. The impact on the pension fund cannot be ignored. Thus, the impact of volunteer soldiers’ pension on the overall cash flow of the pension fund has become the issue to be discussed in this study. The study uses systematic dynamics to explore the relevant factors that affect the cash flow of volunteer soldiers’ retirement funds and the causal interaction between the factors; construct a dynamic model of the cash flow evaluation of volunteer soldiers’ retirement funds; simulate and quantitatively analyze the results; and propose policy recommendations for improving the pension system for volunteer soldiers.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Study on Cash Flow of Volunteer Soldiers Retirement & Compensation Fund – From System Dynamics Perspective
AU  - Ming-Feng Hsie
AU  - Fang-Chen Kao
AU  - Justine Chang
Y1  - 2022/02/16
PY  - 2022
N1  - https://doi.org/10.11648/j.sjbm.20221001.13
DO  - 10.11648/j.sjbm.20221001.13
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 13
EP  - 19
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20221001.13
AB  - Countries around the world use various forms of retirement systems to reduce elderly’s economic risks. The military retirement system is one of the most important welfare measures of Taiwanese military. Facing strong military threats, Taiwan has implemented a volunteer recruitment policy. With the increasing number of volunteer soldiers every year, the ratio of volunteer soldiers over entire miliary population has risen continuously. Volunteer soldiers can retire and start to receive pensions after they have served for 4 years. Therefore, the amount of pension contributions for volunteer soldiers is small, and the short payment time cannot allow the pension fund to obtain long-term compound interest effects. The impact on the pension fund cannot be ignored. Thus, the impact of volunteer soldiers’ pension on the overall cash flow of the pension fund has become the issue to be discussed in this study. The study uses systematic dynamics to explore the relevant factors that affect the cash flow of volunteer soldiers’ retirement funds and the causal interaction between the factors; construct a dynamic model of the cash flow evaluation of volunteer soldiers’ retirement funds; simulate and quantitatively analyze the results; and propose policy recommendations for improving the pension system for volunteer soldiers.
VL  - 10
IS  - 1
ER  -

Copy | Download