A More Flexible Pension Scheme for Migrant Workers

From Economic Observer Online:

A draft to reform the social security scheme in allowing Chinese migrant workers to transfer their pension accounts and contributions nationwide has been finalized, sources revealed to the Economic Observer.

China has some 200 million rural farmers turned migrant workers, who move from city to city or province to province in search of jobs; but the current social security scheme forbids cross-province transfers of accounts.

As a result, migrant workers have to close their old accounts, withdraw their contributions and open new ones whenever they moved bases. In the process, they would lose part of their savings, as the higher contributions made by their previous employers would remain with respective local governments.

The EO learned that the reform draft, which aimed to resolve the above problem and better protect the workers’ right, would be made public early next year.

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