April 2, 2018 -- Retirees and homemakers practise taichi at a playground in Chaohu, Anhui Province. (Photo by Li Yuanbo/For China Daily)
April 2, 2018 -- China's urban and rural residents pension insurance system, covering more than 500 million people, will meet five major changes, four years after it was established in 2014, according to a report by chinanews.com.
The Ministry of Human Resources and Social Security and the Ministry of Finance released a guideline on Monday, indicating that the urban and rural residents pension insurance system, having not been established for a long time, still has some problems and needs to be improved.
The security level of the urban and rural residents pension insurance system is still low, the defined benefit mechanism and normal adjustment mechanisms are unsound and the payment incentive and the restraint mechanism is insufficient, the Ministry of Human Resources and Social Security said.
According to the guideline, four mechanisms, including a defined benefit mechanism, a normal adjustment mechanism on basic pension, an adjustment mechanism on individual payment standard and a dynamic adjustment mechanism on subsidy, will be set up and improved, and the urban and rural residents pension insurance fund will carry out the entrustment investment to realize the value preservation and appreciation of the individual account fund.