New pension fund rules benefit migrant workers

The State Council has announced interim measures that will make it easier for workers to transfer what they've paid into pension funds from one province to another. This new move is most likely to benefit migrant workers who are frequently on the move.

Pension funds in China come from both employees and employers.

Under the new rules, payment from urban employees can be transferred in their entirety among different provinces. While most of the payment from employers can also be transferred. Authorities say migrant workers will benefit the most from this.

Hu Xiaoyi, Vice Minister of Ministry of Human Resources & Social Security said "Migrant workers account for a large portion of mobile urban employees. How to transfer their pension funds, how to protect their interests, and how to strengthen management of the insurance are all key issues covered in the new rules."

The new regulations also say as long as migrant workers pay money into their funds for 15 years and reach the official age for retirement, they will be able to enjoy the same pension level as other urban employees.

Hu Xiaoyi said "This means even if migrant employees are not able to pay their insurance for several years at a stretch, and cannot find work in the same city, they can still keep paying until they retire. This will better protect employee interests, especially those of migrant workers."

What's more, the new rules also simplify procedures for the transfer of funds accumulated. Urban employees only need to submit a written application to social security institutions in the city where they find new jobs. The institutions will then complete the transfers in 45 working days.