China Financial Daily

China’s rural old-age insurance pilot
10% of which is related to rural counties introduced old-age insurance policy, which means that there is no old-age insurance of farmers in China’s history coming to an end.

Premier Wen Jiabao presided over the June 24 State Council executive meeting, researchers carried out the deployment of the new rural social pension insurance pilot.

The meeting noted that the establishment of new rural social pension insurance system covering both urban and rural residents to speed up the establishment of the social security system an important part in ensuring the basic livelihood of the rural population, rural poverty reduction and gradually narrow the gap between urban and rural areas, and safeguarding social stability in rural areas of great significance, at the same time to improve the psychological expectations, promoting consumption, stimulating domestic demand is also important. The meeting decided that in 2009 the country 10% of the counties (cities, districts) in the new rural social pension insurance pilot.

The meeting clearly a new type of rural social endowment insurance system for the basic principle of “basic security, wide coverage, flexible, and sustainable.” First, the reality in rural areas, low-level starting, funding and standards of treatment with regard to the economic development of tolerance and to adapt; Second, individuals, groups, the Government has a reasonable sharing of responsibilities, rights and obligations to adapt; The third is to guide the Government and farmers a combination of voluntary and guide the farmers in general insurance; Fourth, the pilot first, and gradually open.

The meeting decided that a new type of rural social old-age social insurance system with personal accounts of combining the basic patterns and individual contributions and collective benefits, the combination of government subsidies financing. At least 16 years old, not in school, did not participate in the basic old-age insurance for urban workers, rural residents are eligible to participate in the new rural social pension insurance. Over 60 years of age, the insurance in line with the relevant conditions to be eligible for basic old-age farmers.

The meeting called in accordance with local conditions around the carefully selection of pilot areas, to develop practical implementation plans. All relevant departments should strengthen supervision and management of co-ordination and co-ordination. Do a good job in the new rural social endowment insurance system for old-age pension and family, land security, social assistance and other social security policies of supporting the work of convergence. New type of rural social old-age insurance funds into the finance of social security funds at the same level of financial accounts, the implementation of separation of revenue and expenditure management, and the establishment of public information disclosure system and to strengthen social supervision.