Pension fund cake must be bigger so all regions get reasonable slice

THE STATE COUNCIL, China's Cabinet, will start to adjust the pension funds among provincial-level regions on July 1 to ensure the sustainability of the fund, particularly in the less-developed regions, and make the pension level more balanced among different regions, according to a notice issued recently. Beijing Youth Daily comments:

This move will, temporarily at least, ease the concerns of those provincial-level governments that would otherwise be unable to meet their pension fund obligations

China's fast-aging society has put considerable pressure on the pension funds managed by provincial-level governments. Despite this, the robust economic growth in the coastal regions has provided sufficient revenue for these regions to meet their pension fund requirements.