Reforms in the Pension System to be Announced Soon
The Central Government will be announcing news on the much awaited reforms to the pension system in which the assets are estimated to be behind in the US$3 trillion of the predicted future payouts as the system is looking to create a safety net for the fast aging population.
Sources say that the reforms might be announced before the month ends and will also include a merging of State and the private sector employees pension plans which will increase its coverage and expand the range of its assets of which the pension funds were invested to efforts to boosts the returns and improve the efficiency. Sources say that the plans started to merge the private sector pension plans with the civil servants taking out the control of the local government. The first round of measure will be announced soon but need to overcome opposition that is expected from civil servants.
By centralizing the pension to the national fund would greatly improve efficiency of allocating resources with smooth regional disparities which is currently the result seen in several provinces that have surplus in pension.