China’s Pension System: Past and Present

In 1953, China established a retirement pension system for enterprise employees.

China’s State Council promulgated the Regulation on Labour Insurance, specifying the ratio of the pension insurance enterprise workers have to pay and introducing a fund management mode that combines social pooling with management by enterprises.

In 1956, insurance for employees of government organizations and institutions was separated from the retirement pension system for enterprise employees.

The State Council promulgated the Interim Method for Handling Government Retirees.

In 1958, the State Council unified the retirement pension systems for enterprise employees and employees of government organizations and institutions, published the Interim Method for Handling Enterprise Employees and Government Employees, introduced a unified retirement system for employees of government organizations and institutions and enterprise employees that allows work units to design their own retirement schemes.

In 1991, the retirement systems for enterprises and government organizations and institutions were separated, thus bringing enterprises under social security cover.

The State Council promulgated the Decision on Reforming the Pension Insurance System for Enterprise Employees.

1995, China initiated social security reform, but it did not cover government organizations and institutions, thus giving birth to the “dual track system”.

The State Council issued the Circular on Deepening the Reform of the Pension Insurance System for Enterprise Employees, suggesting that insurance payments should be shared by enterprises and individuals and that a financial system based on the combination of social pooling and personal account be established.

In 1997, the basic pension insurance system for enterprise employees was set up.

The State Council promulgated the Decision on Establishing a Unified Basic Pension Insurance System for Enterprise Employees.

In 2000, enterprises were selected to experiment with the personal account system.

The State Council released the Plan for Perfecting the Urban Social Insurance System in Pilot Regions.

In 2008, public institutions experimented with pension insurance reform.

The State Council adopted the Plan for Reforming the Pension Insurance System for Employees of Public Institutions

In 2015, the dual-track pension system was eliminated.

The State Council published the Decision on Reforming the Pension Insurance System for Employees in Government Organizations and Institutions, introducing a basic pension insurance system in government organizations and institutions that combines social pooling and personal accounts.

  Source: ACFTU  2015-03-24

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