BEIJING: China’s private pension program will be fully implemented on Sunday after a two-year trial run, aiming to establish a multi-pillar pension system and cope with the aging problem.
Five central departments, including the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration, jointly released a notice on Thursday stating that the private pension program will be entirely operated nationwide from Sunday.
The program has been put in a two-year trial run in the nation’s 36 major cities — including Beijing, Tianjin and Shanghai — starting November 2022. It has attracted over 70 million people to open their private pension accounts by the end of November this year.
Under the new policy, Chinese employees covered by the nation’s basic pension insurance system can voluntarily open their private pension accounts at designated commercial banks and deposit up to 12,000 yuan ($1,650) annually into the accounts. The payments can be made monthly or yearly.
Citizens joining the private pension program can enjoy some preferential treatments like tax reduction. They can also use the money in the account to purchase financial products, while commercial banks or financial institutions should mark investment tips or risk alerts on the available financial products. –The Daily Mail-China Daily news exchange item
