China starts nationwide pooling of basic pension funds

BEIJING - China has started nationwide pooling of basic pension funds since Jan 1 this year, Vice Minister of Finance Yu Weiping said Tuesday.

The move will allow pension funds to be transfered from regions with surplus to regions with deficit, Yu said at a press conference, adding the ministry is drawing up related documents and will strengthen guidance to localities.

Qi Tao, an official from the Ministry of Human Resources and Social Security, said the move will make sure that retirees in less-developed regions will get their pensions timely and sufficiently.

According to Qi, all Chinese regions realized the pooling of pensions funds at the regional level at the end of 2020, but it was not enough. Gaps of economic development and differences in the age structures of populations have led to pension fund surplus in some regions as well as difficulties of payment in others.

After the establishment of the nationwide pooling system, the unified management of pension policy, pension services and information systems will be enhanced, he said.