21st Century Business Herald:

The payment of pensions has been a focus of attention among citizens. How is the basic old-age insurance funds for enterprise employees doing? Additionally, you established a national planning system for old-age insurance this year and readjusted the basic pension payment for retirees. How will this and unexpected factors such as the pandemic affect pension payment on time and in full? Thank you. 

Qi Tao: 

The pension concerns the life of hundreds of millions of retired people. Since the 18th CPC National Congress, according to the general arrangements of the CPC Central Committee, we increased the basic pension several times. Despite downward pressure on the economy and the impact of the pandemic in 2022, we increased the basic pension payment by 4% and paid extra pensions. The old-age insurance undertakings have developed at a fast pace with a more stable system and a more sustainable fund after more than 30 years of reform and development, particularly since the 18th CPC National Congress, which laid a solid material foundation for the pension payment on time and in full.

Whether pensions can be paid on time and in full depends on the following aspects. 

First, balance. The income of enterprise employees' basic old-age insurance funds in 2021 was 4.4 trillion yuan, and the payment 4.1 trillion yuan. That is to say, the fund was balanced with a certain amount of surplus. The fund has been in smooth operation since 2022. 

Second, cross-provincial adjustment. In January, the national planning system of basic old-age insurance was launched, providing greater support to provinces facing difficulties in funds. A total of 124 billion yuan was transferred in the first half year of 2022, which assisted the pension payment in those provinces. 

Third, surplus. We are capable of securing pension payments with a 5.1-trillion-yuan surplus of basic old-age insurance funds for enterprise employees. 

Fourth, subsidized revenues. 650 billion yuan in central government funding was channeled into enterprises employees' basic pension fund this year, continuing to provide greater help. Western areas and old industrial bases are the priorities of support. In addition to national planning, local mechanisms were established to provide financial subsidies. 

Fifth, long-term reserve pension. The national social security fund has 2.6 trillion yuan as a strategic reserve, and the central government has replenished social security funds with 1.68 trillion yuan in state-owned assets.

By taking a chain of comprehensive measures, we will continue to reform and improve the old-age insurance system to be fairer and more sustainable, thus ensuring the pension payment in due time and in the full amount. Thank you. 

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