China is on the way to enhancing its social insurance scheme, with the Standing Committee of the National People's Congress releasing a draft law for public consultation.
The draft segments social insurance funds into pension, medical, work- related injury, unemployment and birth insurance, each to be independently managed and audited.
Under the proposed system, every citizen will have a social insurance account corresponding to their identity card.
According to the draft, pensions could be transferred and continued when a person moves to work in another region, which is not allowed in the current system. But varying pension rates from region to region remains an issue to be resolved. It is not mentioned in the draft.
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The aim is to have a standardized national system, with pensions first in line for action, International Finance News reported.
Provincial pension systems will be established in most regions by the end of 2009 and the national system by 2012.
Any input on the draft needs to be with the NPCSC's Commission of Legislative Affairs before February 15 next year.
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