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21:38, 13-Jun-2018
China Social Security: Efforts made to ensure basic pension payments
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China's State Council Information Office has given details on the establishment of a central pension management system on Wednesday. The system is expected to enhance the already-existing pension system, but will now balance the burden various regions face when distributing funds.
The payment of pensions varies in different provinces and regions due to economic imbalances. Officials say that an adjustment mechanism at a central level, is required to maintain the sustainability of the system nationwide.
Vice Minister of Human Resources and Social Security, You Jun said, “Establishing a central adjustment system draws a certain proportion of capital from provincial basic pension funds, to form a capital pool, which enables the central government, to redistribute it among various provinces and regions.
Local authorities should enhance the overall planning, collecting, allocating and managing of money from the central adjustment fund. Also, the assessment system needs to be implemented, strengthening expenditure controls, and effectively evaluating pension payment risks."