With effect from 1 January 2022, the balancing of pension funds for private sector employees has been conducted on a national level, rather than on a provincial basis, China’s deputy finance minister Yu Weiping announced on 22 February. The move broadens an existing approach, which began in 2018, of pooling pension funds at a regional level – to ensure a balance between provinces with different levels of funding – and between public and private sectors. It also signals another step towards the creation of a national pension system.
At the press conference, Yu Weiping said the fund had reserves of 4.8 trillion yuan (€672 billion), or 14 months of advance payments. This national pension fund has been supplied with 1,680 billion yuan (€235 billion) by state-owned enterprises and financial institutions.
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