The Chinese government has reiterated that it will promote private pension plans as it accelerates its efforts in developing a sustainable multi-tiered social security system that follows fair and uniform standards, according to the country's latest human rights action plan.
Titled “Human Rights Action Plan of China (2021-2025),” the document was released on 9 September by the State Council Information Office, reported the Xinhua News Agency.
In the private pension arena, the latest development sees the CBIRC allowing four Chinese bank subsidiaries to test retirement wealth management products in four cities.
The wealth management arms of Industrial and Commercial Bank of China, China Construction Bank Corp., China Merchants Bank, and China Everbright Bank will participate in the pilot programme, which is set to last for one year. Each company can sell up to CNY10bn ($1.55bn) of such products under the programme.
Earlier, in June, a pilot scheme was launched allowing individuals to open private accounts in participating insurance companies. Meanwhile, a new national pension company, whose licence was approved by the CBIRC earlier this month, is being established to bolster the private pension sector.
Basic pension scheme
For rural and non-working urban residents facing financial difficulties, the government will cover part or all of their premiums to the basic pension scheme, says the action plan. A mechanism for adjusting basic pension rates for urban employees will be established.
The country will also improve enterprise annuity, a supplemental retirement savings programme for employees of enterprises, and occupational annuity, a supplementary pensions programme for employees of government agencies and public institutions.