Economic Information Daily on July 2nd published the article Pension Adjustment Nationwide Landed. The article provides that the nationwide pension adjustment formally landed on July 1st, marking a key step of overall nationwide pension insurance. The Daily analyzes that the Human Resource and Social Security Department will strengthen the management and supervision for the adjustment fund together with other departments for the next step.
Vice president of the Human Resource and Social Security Department, You Jun, recently pointed out in the regular meeting of new regulation of the State Council that as a result of the fostering rate difference, fund imbalance in different provinces is becoming outstanding and hard to solve on the provincial level, in need of a higher control level to adjust the fund nationwide.
Guan Bo, vice researcher in China Macroeconomics Research Institute said in the interview by journalist from Economic Information Daily that before the pension fund management stayed in the provincial level, the collection cannot adjust surplus and loss nationwide, leading to the situation of fund surplus growing in step of financial subsidy, some province with heavy debt and worsen support condition can only depend on financial subsidy to grant pension.
You Jun said that there is big difference in collection base, rate and income, to realize the ideal nationwide collection is impossible in one night. Central fund adjustment is the first step for nationwide arrangement, to release the provincial and regional imbalance and strengthen the sustainability of pension system.
He Wengjiong, Chairman of China Social Security Academy Pension Branch said that central adjustment fund is a transition, aiming at nationwide collection in the future to change the imbalance of provinces and systems.
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