The Experiment and Progress of Rural
Pension Insurance System in China
Zhao Dian Guo
Director General of the Rural Social
Insurance Department of China
contents
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The Evolution of Rural Pension System
The Major Elements of the Existing Rural
Pension Insurance System
Problems Existing In the Process of
Implementation
Direction of Future Efforts
The Evolution of Rural Pension System
Primary Exploration
Pilot Schemes and Their
Expansion
Steady Progress
Innovation
The Evolution of Rural Pension System
-Primary Exploration
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the enthusiasm of people and local government in
developed areas to put in place a rural pension
system
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The 7th Five-year Plan
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In 1986, the Ministry of Civil Affairs began
explore different approaches to put in place a rural
pension system
The Evolution of Rural Pension System
- Pilot Schemes and Their Expansion
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the central government formulated policies, local
government led the implementation efforts
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the Ministry selected 20 developed counties to
experiment with the rural pension scheme, founded
a rural pension insurance office
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in May of 1991, launch pilot schemes
The Evolution of Rural Pension System
- Steady Progress
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In Oct.1995, the General Office of the State
Council redistributed Circular on Further
Improving Work on Rural Pension Insurance.
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the main investment tolls are treasury bonds and
bank deposit. No agency is allowed to embezzle or
make direct investment with the fund .
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the government evolve new policies and gradually
put in place an operation mechanism and a
regulatory system
The Evolution of Rural Pension System
-Innovation
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In Nov. of 2002, the 16th NPC set out clearly that
places where conditions permit may explore the
possibilities to put in place a rural pension
insurance system.
establish an integrated urban and rural social
security system
how to provide social insurance for farmers whose
land has been requisitioned
how to resolve problems for Immigrant Workers
The Evolution of Rural Pension System
-Innovation
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Currently noticeable achievements
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By the end of 2005, 1900 counties in 31 provinces,
municipalities and autonomous regions, with 54.4194m
farmers insured and accumulated insurance funds of
31.02bn Yuan. About 3.0179m insured farmers received
their pension
the fund structure become more rational and its
operation
model more standardized , the improvement of the
quality of asset
The Major Elements of the Existing Rural
Pension Insurance System
-New Rural Pension Insurance
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The individual pay the lion’s share of the
contributions, while the collective pay a
supplementary amount. For the government, it
offers supportive policies.
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Personal reserve account is set, both individual
contributions and the sum paid by the collective
are recorded under the name of personal account.
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governments only bear limited responsibilities, and
they won’t have a heavy financial burden.
The Major Elements of the Existing Rural
Pension Insurance System
-New Rural Pension Insurance
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some places produced some specially
tailored rural pension insurance programs
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some practice in the south of Jiang Su Province
(Su Zhou, Wu Xi, Chang Shu,Zhang Jia Gang)
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Dong Guan city in Guang Dong Province
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Beijing Model
The Major Elements of the Existing Rural
Pension Insurance System
-Farmers Whose Land Has Been Expropriated
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15 provincial governments have released
documents exploring possibilities to put in place a
suitable social security scheme for farmers whose
land has been requisitioned
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the end of 2005, around 4m farmers who lost their
land have covered by the system, and over 40 bn
Yuan were raised for this purpose
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Other provincial governments are studying this
issue and will release documents soon
The Major Elements of the Existing Rural
Pension Insurance System
-Migrant Workers
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low contributions, wide coverage, transferable, and
integration with existing pension system
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Shang Xi, Fu Jian Province, Beijing and some
other places, in line with their local conditions, all
introduced insurance schemes for migrant workers
Problems Existing In the Process of
Implementation
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relevant agencies fail to reach consensus on how to
put in place proper pension schemes
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Absence of an effective management system and
implementing institutions
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challenge to guarantee the appreciation of the fund
Direction of Future Efforts
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governments incorporate the development of rural
pension insurance system into their social economic
development plan
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Pilot Programs shall be gradually expanded
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improving the mechanism to subsidize farmers
participating the insurance scheme and a transfer
payment mechanism