July 2019

22Jul

China to walk fine line between sustaining growth, pension system

China is attempting to walk a fine line between lowering corporate burdens to boost economic growth and making the country's pension scheme more sustainable amid an aging population. In its latest step, the government vowed to roll out a nationwide pilot program announced in 2017 that transfers stakes in state-owned firms to social security funds. This comes as the 2-trillion-yuan (about 291.55 billion U.S. dollars) reduction of tax burdens and social insurance contributions of enterprises helped lower corporate burdens...

July 22, 2019
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12Jul

China to step up state asset transfers to pension funds amid sustainability concerns

China will expand a pilot program this year to transfer government holdings in state-owned enterprises to social security funds nationwide in response to concerns about the sustainability of the pension system, said Caixin. The State Council decided at an executive meeting this week to fully push for the transfer of 10% of the equity in state-owned companies to the national social security fund and relevant local entities. The move is a further implementation of a 2017 trial plan that was limited to...

July 12, 2019
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11Jul

China’s social security funds to be replenished with state capital

China will replenish social security funds through the injection of state capital this year to make the funds more sustainable. Policies to reduce employers' contributions to social insurance schemes will be further implemented to ensure that pensions are paid on time and in full. The decision was made at the State Council's executive meeting chaired by Premier Li Keqiang on Wednesday. Li has set out measures for such capital transfer in the Government Work Report for four consecutive years....

July 11, 2019
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June 2019

14Jun

Evolving Eldercare in Contemporary China: Two Generations, One Decision (Series in Asian Labor and Welfare Policies) (English Edition)

By Lin Chen With an increasing number of elders moving into nursing homes, the shift from family to nursing home care calls for an exploration of caregiving decision-making in urban China. This study examines how a rapidly growing aging population, the one-child policy, and economic reform in urban China pose unprecedented challenges to the country’s ingrained tradition of family caregiving. It presents interviews of matched elders and their children from a government-sponsored nursing home in Shanghai and analyzes...

June 14, 2019
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May 2019

23May

China is plugging pension hole by tapping into US$25 trillion in equity in state-owned enterprises

Every month, Liu Yuan sets aside around 900 yuan (US$131), or 8 per cent, of his salary to be paid into the public pension fund, while his employer contributes about 2,000 yuan. These payments will guarantee the 33-year-old accountant of a construction company in eastern Shandong province a basic monthly pension payment of around 4,000 yuan a month when he retires in 25 years, all other things being equal. But starting this May, his employer can cut the mandatory...

May 23, 2019
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15May

China may see explosive growth of individual commercial pension insurance

Individual commercial pension insurance has the potential to see explosive growth in China as the country needs to address challenges in its pension system, according to a report by McKinsey & Company in Beijing on Tuesday. China's pension system is composed of three parts: first-level basic pension insurance, second-level enterprise and occupational annuity, and third-level individual commercial pension insurance. The structure of China's pension system is far from being balanced and sustainable. By the end of 2017,...

May 15, 2019
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April 2019

29Apr

Social Security Coverage Around the World: The Case of China and Mexico

By Francisco Perez‐Arce (Åbo Akademi University - Economics & Statistics), María Prados (University of Southern California), Erik Meijer (University of Southern California; RAND Corporation), Jinkook Lee (University of Southern California - Center for Economic & Social Research; Program on Global Aging, Health & Policy, Center for Economic & Social Research; RAND Corporation) We describe the current state and recent trends in the landscape of social security programs in China, Mexico, and India. A common thread across these countries is the...

April 29, 2019
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24Apr

China says will guarantee pensions amid warnings of funds drying up

China will “fully guarantee” future pension payments, a government official told reporters, amid warnings from government researchers that funds could run out by 2035. China’s social security system is under increasing strain as a result of a rapidly ageing population and a shrinking workforce. The China Academy of Social Sciences (CASS), a government think tank, said in a report this month that the country’s pension funds could become insolvent by 2035, with a rapidly dwindling workforce unable to support...

April 24, 2019
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16Apr

China Urgently Needs a National Pension System

The problems in China’s pension system are widely known, but very difficult to solve. The central adjustment system for the basic pension funds for enterprise employees was established on July 1 last year and the system’s annual budget was recently made public. This is a step in the right direction. However, in order to thoroughly resolve the crisis in the pension system, national coordination is imperative. It is an inevitable requirement for the rational allocation of labor resources in...

April 16, 2019
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12Apr

Foreign insurers gear up to tap China’s $1.6 trillion pensions business – sources

Foreign insurers including Generali and Prudential Plc are in early talks with authorities to enter China’s private pensions sector, people with knowledge of the matter said, as Beijing opens up to overseas companies. Hong Kong-based AIA Group and Manulife Financial are also considering similar moves, they said. Beijing gave approval to the first foreign joint-venture firm to establish a pensions insurance business last month and two of the people said China has been running pilot projects in three provinces involving...

April 12, 2019
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