China to Cover 200m Migrant Workers with Portable Pension System

[AlphaCentauri]

Source: CS

A portable pension system, covering 200 million migrant workers, is in the pipeline to be launched later this year. According to the plan, social security accounts of migrant workers with stable jobs will be combined into the current urban social security system, while those of migrant workers without stable jobs will be directly deposited into personal accounts.


Policy guidelines have been decided. At the earliest, the policy will be launched at the end of this year. Hua Yingfang, researcher at the Social Security Research Center of the Ministry of Human Resources and Social Security, sees the proposed system as a transitional policy, to be constantly improved, that will be eventually merged into urban social security system.


By the end of 2007, 18.46 million migrant workers were enrolled in basic pension insurance, meaning less than 10% of China’s 200 million of migrant workers are now able to receive a pension upon retirement, so the pension insurance issue for migrant workers becomes more and more urgent.


The proposed policy is a pension insurance system based on a personal account with low contribution payments, and therefore well suited the high liquidity and low income of migrant workers. According to the policy, a big account will be established for every immigrant worker involved in the plan. All personal contributions and most of the contributions paid by employers will be deposited into this account. Immigrant workers will carry this account with them when they move to other cities of the country, so their interests won’t be harmed when they move.



Read more: http://www.chinastakes.com/story.aspx?id=588

[SpiralHawk]

1. "American proles can just retire by their own bootstraps. Smirk." - Commander AWOL

& allied cabal of republicon cronies

[rfranklin]

2. Our country is more disgraceful each day...

with the wingnuts chanting "we're number one!" while we fall further behind every other civilized country in the world in virtually every category.

[David__77]

3. As much as people are critical of China...

...living standards are indeed improving for the large majority of people - not just the rich. I do wish that the Chinese leadership would make consistent efforts to decrease income polarization, however. In fact, according to some measures there is less polarization in the US than in China.