Sources indicate that the public service organizations’ ((public service organizations are established with state asset from the government or other institutions to be engaged in activities in areas of education, science and technology, culture, health, etc.)) pension system reform will be directly implemented nationwide instead of going through the usual process of being implemented through a regional pilot project first. Director of the Institute of World Social Security Research Center at the Chinese Academy of Social Sciences Zheng Bingwen, said he expects the overall reform of the pension program to be announced early next year. The reforms strive to ensure the establishment of a fully consistent, fair, urban based old-age insurance system.
This is a big challenge. Experts and industry insiders say that because of the large number of people working at public service organizations, funds may not be enough to serve the large number of employees. Nonetheless, the State Council issued “Several opinions to further promote the healthy development of the capital markets” (《进一步促进资本市场健康发展的若干意见》) which clearly support the social insurance funds, corporate pension, occupational pension, commercial insurance funds, offshore funds and other institutional investors’ long-term capital investment in the capital market and gradually expand the scope and scale. Minsheng Securities chief strategist Li Shaoqun believes that actively promoting occupational pension, annuity and other long-term funds into the market will improve capital market structure, and further stabilize and strengthen the capital market.
Zheng Bingwen believes that there must be a unified national pension policy in order for it to be sustainable. Without it a city or a department will not be able to develop a good system on their own.