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Extension of old-age insurancecoverage in China

approach, experience and challenge

Qian YAO

Social Insurance AdministrationMinistry of Human Resources and Social SecurityPeoples Republic of China

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Content

1. Background

2. Chinese approaches

3. Achievements and experience 4. Challenges

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1.1 Old-age insurance system inChina

Old-age insurancesystem

basic old-ageinsurance foremployees

Retirementpensionscheme

new rural socialold-age insurancescheme and socialold-age insurancescheme for urban

residents

enterpriseemployees

employees ofgovernment andpublic institutions

Urban and ruralresidents

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1.2 Policy options of the ChineseGovernment

Principle: Putting the people first andhighlighting the focus on the well-being ofthe people

Target: by 2020, a full-fledged socialsecurity system with Chinese characteristicsshall be put in place, covering the wholepopulation, integrating urban and rural

areas, sustaining stable development, andproviding social protection floors to all

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2.1 Adopting legislation and expandingbasic old-age insurance coverage by law

Social Insurance Law(2010)

the first special law concerning

social insurances in China

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2.2 The extension of coverage of basic old-age insurance for employees

to new categories of the population: Non-public enterprises of all kinds, privately orindividually-owned businesses, workers in

flexible employment forms, full-timeprofessionals in social organizations

scheme transfer and continuation amongdifferent provinces

significant improvement in benefits

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2.3 Introduction of new schemesfor targeted groups

Pilot Projects for Establishing a NewType Old-age Insurance System forRural Residents,2009

Pilot Scheme for Establishing a SocialOld-age Insurance System for UrbanResidents, 2011

Integration

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2.4 Improvements in accessibility

social security card

By the end of 2011 , 200 million cards wereissued. The figure is expected to reach 349

million by end 2012 and 800million by end2015

build social security service platform andnet work at street, village ,township andcommunity levels

In the nationwide, the total numberreached 7000.

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3.Achievements of coverageexpansion

The number of employees covered in basicold-age insurance continues to grow

In March 2012, 287.75 million, 2.3 times as

many as the number in 1999. The number of covered members in new

rural old-age insurance and old-ageinsurance for urban residents grows rapidly

376 million, by March2012

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4. Challenges we are facing

more informal workers should becovered

easier transitions between urban andrural schemes

small-sized enterprises

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THANK YOU!