China’s social security funds to be replenished with state capital
China will replenish social security funds through the injection of state capital this year to make the funds more sustainable. Policies to reduce employers’ contributions to social insurance schemes will be further implemented to ensure that pensions are paid on time and in full.
The decision was made at the State Council’s executive meeting chaired by Premier Li Keqiang on Wednesday.
Li has set out measures for such capital transfer in the Government Work Report for four consecutive years.
The State Council issued the implementation program on replenishing social security funds with state capital in November 2017, deciding to pilot the measure in selected central and local state-owned enterprises.
It was decided in the guideline to set the transfer ratio at 10 percent of these enterprises’ state-owned equity, with the exception of state-owned enterprises serving public interest, cultural enterprises, policy and development financial institutions and those otherwise stipulated by the State Council.
“We need to ensure that work on this front progresses steadily and effectively and sends a reassuring message to the public,” said Li. It was decided at the meeting that the pilot measures introduced will be extended nationwide this year.
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