翰威特-中国养老金改革幻灯片.pptVIP

Contents Map of China PRC Population Old System (‘Iron Rice Bowl’) World Bank Pension Principles for the Future New System (‘Safety Net’) Financing Pension Assets Develop Capital Markets Implementation Issues Supplementary Pension Plans Opportunities for Fund Managers National Social Security Fund Liaoning Experiment Comparison of Hong Kong and PRC Possible Developments in China Major Factors for an Ideal Retirement System Map of China PRC Population Total: Rural Population: + Urban Population Consider: One Child Policy Greatly improved life expectancy Dependency Ratio deteriorating rapidly Exceeds 1.2 billion 900 million + 400 million Ages: 0-14 100 million 15-64 275 million 65+ 25 million World Bank In early 1990s, World Bank studies how best to solve the ageing issues in China World Bank suggested a three pillar approach Government run basic pension Privately run individual accounts Voluntary employer/individual savings 1993 and 1996 announcements on social security reform Unify social security pension Create individual accounts within basic social security Enhance with supplementary pension plans Pension Principles for Future Reduce pension expectations Cost burden to be shared by employer and employee Move towards pre-funding Reasons? Population projections SOE restructuring Develop domestic capital markets New System (‘Safety Net’) New Unified Pension System Reform (July 1997) Expand coverage to all urban employees Gradually raise retirement age (to 65 years for men women) Benefits Pillar I = Basic Pension of 20% of average provincial wages Pillar II = Individual account based on 11% contributions Pillar III = Voluntary Supplementary Benefits Financing Employee Employer = 4% salary contribution increasing by 1% every 2 years up to 8% = Approx 20% of salary contribution (Subject to salary maximum and local variation) Develop Capital Markets SOEs to be restructured: 1,000 – 2,000 Merge, close, downsize or corporatize List on stock