Pension policy reforms in China from 2009 to 2012

Abstract

Recently, the Communist Party of China has endeavoured to implement reforms to extend pension coverage in China. In 2010, the central government promulgated the Social Insurance Law, which specifies rules on basic pensions, and introduced the New Rural Pension Scheme, Urban Resident Pension Scheme and various policies on pension transfer and continuity. In principle, a preliminary pension policy framework had already been constructed to secure China's urban and rural population. However, these reforms do not address the low participation of rural migrant workers, urban-rural disparity and fragmentation. Therefore, in line with the goal of old-age security, economic growth and social stability, deep pension reforms are clearly needed in the future.