| China is going to reform its pension system for employees in government departments, in a bid to level out the massive pension gap with those working in enterprises.
In the current dual system, government and public institution employees receive a much higher pension after retirement than those working in enterprises.
A draft reform plan has been approved by the Chinese cabinet.
Vice Premier Ma Kai.
"We are going to establish an integrated pension system for government bodies and enterprises. The new pension scheme will include money paid by individuals and employers. We are also going to carry out a reform on how the numbers and rates are determined, in order to break the long-held dual system."The reform will be carried out nationwide simultaneously with reforms of the salary system.
中国公务员养老保险制度改革The vice premier also says the national social security system has been established, while the recent measures are expanding its coverage.
"Based on an improved provincial reform, pension insurance should also be pushed forward at the national level. We will work out initiatives for clear-cut funding and paying responsibilities of central and local governments".
As of the end of November, 837 million people had joined the pension system. And the government is trying to cover 900 million people by 2017.
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