The Chinese government will help out provinces reeling under the weight of increasing pensions burdens, by tapping retirement funds of more well-off provinces.
The goal of the new system is to keep the country’s basic pension system stable, amid an aging population that is swelling the benefit rolls and a migration of working-age people to urban areas. This exodus leaves more rural locales with fewer taxpaying citizens to fund the pension payouts.
Under the plan, at least 3% will be withdrawn from the better-funded plans and increase from there.
China’s government also wants more pension data tools, such as a search platform to check individual benefit payments, a watchdog for central pension fund adjustments, and a nationwide central database.
No increases are expected to be made to contributions from workers or companies.