China overhauling pension system

Initial 10% of equity in state firms will be transferred to National Council for Social Security Fund

SHANGHAI: China announced a pilot programme on Saturday to help pension schemes meet growing pressure from an ageing society by transferring shares of state-owned firms to social security funds.

A document released by the country’s State Council, or cabinet, said the programme would begin this year with shares of up to seven SOEs to be transferred.

The plan is intended to help make up for shortfalls in the nation’s pension schemes and will be expanded in 2018 to involve more state-owned companies, the document said.

An initial 10% of equity in the state firms will be transferred to the National Council for Social Security Fund (NCSSF), the state pension fund.

Published in The Express Tribune, November 19^th, 2017.

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