NPC meeting discusses social security law

The ongoing meeting of China's top legislature is also discussing and reviewing a draft law on Social Security. Details of the law regarding pensions and insurance has created a lot of interest among the public.

The draft law has been formulated to address a series of problems regarding the transfers of endowment insurance, and how to strengthen management, transparency and supervision.

Zhang Bailin, Vice Chairman of NPC Law Committee, said, "Some standing committees and local governments say that since the minimum payoff term for enjoying basic endowment insurance treatment is 15 years, those who pay the insurance less than 15 years will not be allowed to enjoy the basic pension funds after retirement. I think it's unreasonable. The social insurance law should use past experience as a reference."

The draft states that individuals who retire before paying insurance for 15 years, will be allowed to continue payments into retirement until the necessary time frame is reached. After, they will be given a basic pension fund every month. To strengthen the efficiency of management over social security funds, the draft will also regulate premiums, so they are levied through the same standard.

Zhang Bailin, Vice Chairman of NPC Law Committee, said, "Different insurance categories in different places affect the efficiency of levying fees and adding additional costs. It is not convenient for companies and individuals to pay the fees."

The State Council will study how the process is implemented and the details on levying insurance in an unified system. In addition, the draft will also regulate how the country sets up a National Social Security Fund, that will be funded by the central fiscal budget and other capital approved by the State Council.

National Social Security Funds aims to recognize value added and preserved assets. To improve transparency, the funds will be required to release information on its income and expenses, management and investment details to the public regularly.