China to Shunt More Money to Ailing Provincial Pension Plans
Beijing will divert money from well-funded programs in bustling urban centers to subsidize struggling areas.
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Under the plan, at least 3% will be withdrawn from the better-funded plans and increase from there.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.