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Opinion

Government pension for all

(China Daily)
Updated: 2011-06-27 14:50
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The urban pension system and its rural counterpart will cover all who are not secured by work-unit pensions, finally realizing the goal of all citizens receiving pensions in their old age. This is not just the promise Premier Wen Jiabao made on behalf of his cabinet on Monday, it is also a significant breakthrough the government has realized in creating a cover-all social security net.

The new type of rural pension system, which was launched in August 2009 on a trial basis, has attracted 190 million rural villagers, and the number of those above the age of 60 benefiting from the system has reached 51.7 million.

Its urban counterpart, which will start on a nationwide trial basis from July 1, will ensure that those who have no job will get a pension when they reach the age of 60, as long as they have paid into their pension accounts for at least 15 years. Both central and local governments will pay into the pension account, making sure that pensioners get basic living expenses.

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It is definitely not easy for such a populous country as China to cover all its citizens with a pension net, even at a low level. But as Wen stressed, the building of a justifiable and practical system is very important. He also said that citizens should never be coerced to join the system.

This explains why standards for individual payments have been divided into 10 categories. For the lowest category, an urban resident only has to pay 100 yuan ($15.44) a year. Of course, he will get much less in his monthly pension than someone who has paid 1,000 yuan a year, the highest.

The standards have been set so that even the poorest people can participate in the system and be supported by a pension in their old age.

Given the current number of senior citizens, which is 178 million, about 13.6 percent of the entire population, and the fact that aging population is growing, the burden to provide for the aged will be increasingly heavy and it will be very difficult in the near future for the government to raise pensions to a higher level.

True, the government pension system should play just a supporting role. The accumulated savings of individual residents themselves, the financial support from their children and the pension money from commercial insurance, if they have bought any, all have their due role in supporting senior citizens in their remaining years.

However, despite these other sources of support, the government-sponsored pension system is irreplaceable, and makes sure that all citizens will enjoy the fruit of economic growth.

People may join the system at very young age and pay more in order to receive higher pensions in the future, while those who cannot afford even the lowest payment will get special aid from the government.

But residents need to be realistic. As Wen stressed, taking care of the aged is not a task the government will be able to shoulder alone, the government, society and individuals will need to join hands together.

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