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Books > Social sciences > Politics & government > Central government > Central government policies
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China's Pension System - A Vision (Paperback)
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China's Pension System - A Vision (Paperback)
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Comprehensive reform of China s pension and social security system
is an essential element of achieving its objectives of a harmonious
society and sustainable development. Over the past few years, the
Government has considered various options and initiated several
significant measures. In 2009 the authorities established a
national framework for rural pensions, the Rural Pension Pilot
Program (RPPP) and in 2011 a Pilot Social Pension Insurance for
Urban Residents announced. In this process, it has articulated
principles for a reformed urban pension system (indicated by 12
Chinese characters ) which are broad coverage, protects at the
basic level, is multi-layered, and sustainable while the principles
for the rural system (indicated by 12 characters ) are broad
coverage, protects at the basic level, flexible, and sustainable.
These principles underpin the commitments made at the 17th Party
Congress towards a comprehensive and integrated social security
system by 2020. Although substantial reforms of the pension system
have been undertaken over the past two decades, some policymakers
have suggested that additional reforms are needed to meet the needs
of China s rapidly changing economy and society. Issues such as
legacy costs, system fragmentation and limited coverage have not
been fully addressed. At the same time, many new challenges have
emerged such as rapid urbanization, increased income inequality and
urban-rural disparities, greater informalization of the labor
force, changes in family structure, and the effects of increased
globalization. This report has been prepared at the request of the
Ministry of Finance to develop a medium term vision of a holistic
framework that could be realized by 2040 for strengthening old age
income protection in China which is consistent with the principles
outlined in the 12 characters and design options towards achieving
it. The main body of this report outlines this vision summarizing
the key features of a proposed medium-term pension system while the
annexes provide the deeper analysis and context which underpins the
recommendations contained herein."
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