Look at futuristic pension scheme of China

Look at futuristic pension scheme of China
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Even though the People\'s Republic of China (PRC) was established in mainland China by the victorious Communists in 1949 with the pledge that the (then) new regime would better the lives of proletariats of the country (including rural workers), not much has been done yet. Well, the CPC (Communist Party of China) and under it PRC are ready to rectify the long-standing mistake, after the passing of more than six decades. How? The government is set to launch a new pension scheme for the country\'s hundreds of millions of rural workers.


The news is, without a doubt, exciting and has been considered by many as the specimen of the changing postures of the government. The annunciation was made by the Minister for Social Security, it was also announced that a trial scheme would be extended across China by October. What’s more, the government will pay for basic insurance for rural workers and farmers will contribute to a pension pot.


Nevertheless, some experts are skeptical of the entire project and states this is a ploy to calm down the widespread discontent among China\'s rural have-nots. They are enraged of the wide disparity between their incomes compared to that of urban residents. It is worthwhile to mention that the government operates a basic pension plan for urban workers already.


"The new system is paid for by farmers, collective benefits and government subsidy, which is totally different from the old system, paid for by farmers themselves, with no subsidy from the government," Hu Xiaoyi said, according to state news agency, Xinhua.


It has been learnt that the scheme will be valid for all farmers over 60 and any person over the age of 16 who does not take part in the government\'s existing urban pension scheme is eligible to pay into the program.


A pilot version of the scheme is currently being trialed across some parts of China, including in Tangwei country, in Suzhou.


 



Posted on : Sun, 30 Aug 2009 02:05 GMT | Pensions News
By : Rob Davis
 
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