Five Major Changes That Will Affect the Pension Insurance Sy
China's urban and rural residents' pension insurance system, covering more than 500 million people, will undergo five major changes, four years after it was established in 2014, according to a guideline released by the Ministry of Human Resources and Social Security and the Ministry of Finance on March 26.
Let's take a look at them.
1. The defined benefit mechanism will be improved.
2. A normal adjustment mechanism on the basic pension will be set up.
3. An adjustment mechanism on the individual payment standard will be set up.
4. A dynamic adjustment mechanism on the pension subsidy will be set up.
5. The urban and rural residents' pension insurance fund will make investments to preserve the value and realize appreciation of the individual account fund.
(Source: China Daily)
