The national coordination of China’s pension fund will commence next year in an attempt to solve the ongoing problem of uneven distribution, Yicai.com reported, citing Lu Aigong, a spokesperson from the Ministry of Human Resources and Social Security.
The move is meant to solve China’s long-term problem of uneven pension distribution. Even with a 4 trillion yuan national accumulated balance, some individual provinces still find it hard to make ends meet.
Pension contributions in China’s provinces are currently not consistent. For example, Heilongjiang province pays rates as high as 22%, while Guangdong province pays only 13%, and Shenzhen pays 10% or less.
Li Zhen, Professor of Renmin University of China’s School of Public Administration, said that the move is “a realistic choice.”
While Song Xiaowu, chairman of the China Economic Reform Research Foundation, said in a statement that she is confident in achieving the goal under the guidance of the nineteenth report, so as to promote the new era of social security.