REFORM OF MAINLAND CHINA URBAN OLD-AGE-PENSION SYSTEM

In recent years, the Beijing government has undertaken a series of reforms of mainland China's old-age pension system in an attempt to deal with social and economic problems arising front an aging population. The reforms have centered on extending socialized pension provision to non-state-owned enterprises. In addition to the compulsory pension scheme, the government is encouraging enterprises to offer supplementary schemes and employees to purchase their own individual insurance policies, However, the egalitarian habits of the past and lack of confidence in the government have combined to make some enterprises and individuals reluctant to pay the compulsory premiums. The resulting funding difficulties must be solved promptly, or they will seriously hamper economic development and even affect social stability throughout the country.