Pub­lic in­sti­tu­tions must con­trib­ute to pen­sion fund

China Daily (Canada) - - FRONT PAGE -

Pub­lic in­sti­tu­tions will have to start con­tribut­ing 20 per­cent of em­ploy­ees’ salary to their pen­sion fund and de­velop an an­nu­ity ar­range­ment, ac­cord­ing to the coun­try’s lat­est re­form.

The cur­rent dual pen­sion sys­tem has reached its fi­nal stage, the of­fi­cial web­site of the Chi­nese gov­ern­ment un­veiled. The new re­forms are ex­pected to “in­crease fair­ness” in the pen­sion sys­tem, the web­site wrote.

This is the first time that the pub­lic sec­tor has shared a uni­fied pen­sion sys­tem with en­ter­prise re­tirees. Ac­cord­ing to the guide­line, em­ploy­ees of pub­lic in­sti­tu­tions need to pay 8 per­cent of their salary as a pen­sion pre­mium.

China has the largest se­nior pop­u­la­tion in the world, with 194 mil­lion peo­ple at or above the age of 60, ac­cord­ing to the China Na­tional Com­mit­tee on Ag­ing.

About 40 mil­lion mem­bers of gov­ern­ment, Party, and pub­lic in­sti­tu­tion staff will be af­fected by the re­form of China’s pen­sion sys­tem.

China has the most pub­lic em­ploy­ees in the world. As the pop­u­la­tion is ex­pected to reach 1.43 bil­lion in 2020, the State Coun­cil wants a pen­sion sys­tem that cov­ers the whole pop­u­la­tion.

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