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Why should we implement the central adjustment system for endowment insurance funds?
"The implementation of the central adjustment system is conducive to enhancing the mutual aid function and anti-risk ability of the basic endowment insurance fund for enterprise employees, preventing and resolving the income and expenditure risks of the basic endowment insurance fund for enterprise employees in some areas, and improving the income and expenditure situation of funds in some areas." Jin Weigang, president of China Labor and Social Security Research Institute, said.

The data shows that in 20 17, the number of employees participating in enterprise pension insurance was 353 million, including 259 million on-the-job employees and 94.6 million retirees receiving benefits. The national total dependency ratio is 2.73∶ 1, but there are great differences among provinces, some are 4∶ 1, and some are less than 2∶ 1. The accumulated balance in China can be paid for 17.4 months, and some provinces can pay for 40 or 50 months. In some provinces, the current income is not enough, and the accumulated balance in some provinces is even used up.

Jin Weigang said that the establishment of a central adjustment system for endowment insurance funds, through various channels and means such as fund raising, fund distribution and fund management, will help to alleviate or gradually solve the problem of insufficient collection of basic endowment insurance funds for enterprise employees in some difficult areas, especially in areas with high retirees, and help promote the sustainable development of the basic endowment insurance system for enterprise employees nationwide.

Not only that, "this reform will also bring new reform and development opportunities for improving the old-age security system in China." Jin Weigang said that as the first step of the national overall planning of endowment insurance, the implementation of the central adjustment system is also conducive to gradually solving the contradictions and problems brought about by major differences in policies and regulations, payment base, rates, handling management and information systems. In the past, the national policies and regulations, management system, handling services, standard system and information system were gradually unified. Source: People's Daily-People's Daily