New Pension Insurance System Targets Urban, Rural Residents

2012-11-27 13:56:23    Web Editor: Fuyu

China's Ministry of Human Resources and Social Security on November 23 proposed a new pension insurance system that will allow people to change among the three existing types of insurance, The Beijing News reports.

China's current pension insurance system includes basic pension insurance for urban workers, new rural social pension insurance, and urban social pension insurance. People receive monthly pensions provided they have paid for the insurance for 15 consecutive years.

According to the new proposal, those covered by two or three of these types of insurance can switch from one to another with the 15-year time limit as a guideline.

The new system does not apply to pensioners.

Authorities say the new system is aimed at making sure people are covered by pension insurance, even when they are not eligible for one of the three types of insurance.

To change their pension insurance, policyholders must file a written application and wait for it to be examined before they can transfer their coverage to another type of insurance.