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住房公积金制度 (zhufang gongjijin zhidu)

Housing Provident Fund System

A compulsory social security program for all employees to make long-term deposits, which are pooled, managed and used to pay for individual housing. Started in Shanghai as a pilot program in 1991, the system was established nationally in 1994. All employees put aside a set amount from their monthly income and their employers pay the same number, both sums going to the fund-managing department. Belonging to the individuals, the deposit could only be taken out under special occasions, like purchasing properties and repairing houses. Participants could also apply for low-interest loans from the fund. The remaining part could be withdrawn upon retirement.