China to Create Unified Pension System
China is creating a unified pension system that will end decades of disparity in giving out pension benefits between private and public employees which gave rise to public discontent. The government will be putting an end to its two track system that offers different benefits for public employees whose pension benefits are being paid by the government. And for private employees that gets market based payments.
The conflict is due to the difference in the pension benefits received and has been notable and with the public outcry growing strong. Although no timetable have been set yet on when the system will be fully implemented with the changes. A public employee monthly pension sometimes can be twice that of a private employee.
The government is aiming to have 95 percent of 1.34 billion people o be covered by their pension system by 2020 up from the current 80 percent. Furthermore the State Council has pledged to create the unified pension system for residents in both rural and urban areas and to further promote population mobility and boost consumption.