Vice Minister of the Ministry of Labor and Social Security Liu
Yougfu recently gave further details of the major developments in
the pipeline for social security provision for retired state
employees. The improvements will be introduced in three tranches:
- By the end of this year, 50 percent of retirees in major cities
and better-off rural areas will be included.
- By the end of 2003, this will have been extended to 80
percent.
- By the end of 2004, all eligible retirees will be in the new
social security scheme.
The effect of these new social security measures will be that local
government will take over responsibility from the work units for
providing pensions and other benefits like support with
accommodation and medical services.
What remains to be done to ensure a smooth transition coupled with
the success of the new provision?
Regulation will be necessary to ensure pensions are paid timeously
and in the correct amounts. The ministry will establish a database
of personal files to help in the smooth running of the new
arrangements. It will also guide the retirees in making the break
from the service currently provided by their old work units and
joining the new social security scheme.
A
planned approach to implementation will be necessary with
monitoring and control in place at the local level to ensure that
the process rolls out according to program.
It
will be necessary to ascertain the liabilities of the retirees'
original units. The units will remain responsible for any
retirement pay in excess of the government's unified grant. They
will also continue to shoulder housing costs like management and
maintenance in respect of former employees retiring before the
advent of Housing System Reform. In addition they will still have
to meet the medical expenses of their pensioners where they have no
other form of medical insurance.
Just over 11 million eligible retirees had been brought into the
new social security scheme by this September. This is about 35
percent of the total and represents an increase of nearly 13
percent since the end of last year.
(china.org.cn by Feng Yikun November 19, 2002)