Balance pension fund with growing needs

The Pension Fund Actuarial Report 2019-2050, prepared by the Center for International Social Security Studies, Chinese Academy of Social Sciences, and released on April 10, has drawn wide public concern. The report, China's first actuarial report on the pension fund, focuses on the old-age pension fund, especially because Premier Li Keqiang said in this year's Government Work Report that the share borne by employers for urban workers' aged-care insurance will be lowered.

Earlier, employers had to pay 20 percent of the premium for aged-care (or pension) insurance while employees paid 8 percent. But to help the employers cope with the economic downturn pressure, the government reduced their contribution to 19 percent, which eased their economic burden by about 500 billion yuan ($74.49 billion) in the past four years. This year's Government Work Report says the employers' share will be further reduced, from 19 percent to 16 percent nationwide.

The CISSS report calculates the sustainability of the pension fund till 2050, by when China is expected to become a great, modern, socialist country.