CHINA: Pilot pension project for farmers aged over 60 coming by October 2009

. BEIJING, China / People's Daily Online / Macro Economy / August 5, 2009 A pilot project for the new rural social endowment insurance will be launched by October 1 this year, entitling farmers over the age of 60 to a retirement pension under China's generalized system of preference (GSP), said Hu Xiaoyi, vice minister for China's Ministry of Human Resources and Social Security on August 4. Hu said that the State Council has in principle approved the "Guiding Opinions on the implementation of New Rural Social Endowment Insurance", and is now asking for suggestions on the opinions. The pilot project is expected to be launched before October 1 this year. The financing pattern of the new rural insurance is quite different from the old one implemented in some areas. Funding for the old rural insurance came from the money paid by the farmers themselves, so the issuance pattern was in fact a deposit pattern. However, funding for the new rural insurance will come from a combination of farmers' individual contributions and collective and government subsidies. In particular, the central government will provide subsidies to local areas, and the money will be directly granted to the farmers. Hu believes that the new rural insurance is another important policy benefiting farmers, following the policies including the abolition of agricultural tax, the implementation of a direct agricultural subsidy and the launch of the new rural cooperative medical care system. Once the pilot project is perfected and the new rural insurance has been fully implemented, China's farmers will be able to enjoy a retirement pension under the GSP after they reach the age of 60. [rc] By People's Daily Online