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New pension program set to roll out this year

(chinadaily.com.cn) Updated: 2014-06-25 17:37

China's new reform plan that targets the current dual pension system has reached its final stage, and is expected to roll out by the end of this year, the 21st Century Business Herald reported on Wednesday citing an unnamed source from the Ministry of Human Resources and Social Security that has been leading the efforts in pension reform.

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The framework has been mapped out, setting the tone of a nationwide reform of public institutions which are expected to share a unified pension system with enterprise retirees, said the report. Specific programs are now being mulled.

Reforms will tackle how wages are disbursed, performance appraisal, occupational annuity and classification of public institutions, a move that will mark a big step in the much-highlighted process.

Pension reform has been stuck in the past few years as pilot programs in places, including Guangdong province and Shanghai municipality, have come to a standstill after they were launched in 2008.

"The key issue to a smooth sailing of the pension reform is to guarantee a consistent social insurance network for retirees in public institutions affiliated to government departments, and that their income doesn't change much." Jin Weigang, head of the Social Security Institute under the ministry, was quoted as saying.

People fret their income will see a sharp drop after the reform. But it's not likely. The reform will be basically a structural change, and there may be some transitional measures to help tide over the water, Jin said.

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