Pension Reform in the People's Republic of China

Xiaowu Song

In recent years, the People's Republic of China (PRC) has adopted a series of measures to reform the defined-benefit, pay-as-you-go pension system. The old system is to be replaced by a three-pillar system to achieve a better balance of the social obligation between the state, enterprises, and the individual workers. In the new system, an individual account is combined with social pooling (Pillar I minimum pension). To facilitate the transformation of the old system to the new, the pension authority faces several important challenges.

After a brief overview of the social security system in the PRC, focusing on reform of the pension system, the presenter will address the progress of pension reform, analyze the issues faced, and identify challenges for the future. The experience with pension reform in Liaoning Province (as a pilot basis of pension reform) will be discussed.