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Report shows 11 regions face pension fund deficit

Source:Global Times Published: 2012-12-18 1:05:06

Over one-third of China's 31 provinces and autonomous regions do not have sufficient funds to pay for the pensions of employees of urban enterprises, according to a report released by the Chinese Academy of Social Sciences on Monday.

China Pension Report (CPR) 2012, compiled by the Center for International Social Security Studies at the Chinese Academy of Social Sciences, points out that the differences in the rate of maintenance for the elderly is the fundamental contributing factor to the unbalanced regional development of pension funds.

CPR 2012 comprises one main report and 11 sub-reports, examines the development and reform of China's pension system in the year 2011, on the themes of financial sustainability and unbalanced regional development of pension funds.

According to CPR 2012, progress has been made in the pension system for employees of urban enterprises, with the pension-covered population, pension-fund revenues and surplus hitting record highs.

Despite the obvious progress, problems still exist in the current pension system. The figures given in the report show that among 31 provinces and autonomous regions, 11 provinces failed to make ends meet.

CPR 2012 also notes that most of the 12 provinces whose surplus rate is higher than the national average are concentrated in China's east coast, which indicates an unbalanced regional development of pension funds.

Fu Jinling, a vice director of the social security office of the Ministry of Finance, said at an international seminar on social security in Beijing on Monday that the equilibrium in the balance of pension payments is not only related to the stable operation of the pension system but also closely tied to social harmony and stability.

Global Times

 

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