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China unveils unified pension system

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Measures on old-age insurance for workers in government agencies and public institutions were unveiled on Wednesday.

Insurance will now be paid by both workers and organizations, instead of just by organizations or central finance as in the past. Workers will pay 8 percent of their monthly salary into the scheme, while the organization will pay 20 percent of the salary, according to a statement by the Ministry of Human Resources and Social Security.

China has nearly 40 million such workers in government agencies and public institutions. Most of them are civil servants, doctors, teachers and researchers.

In the past, corporate employees had to pay for their own old-age insurance, while government staff enjoyed pensions without making any contribution at all.

Inspections on ministries, provincial governments, big SOEs and public institutions have been coordinated since 2013.

Six SOEs under the care of the central government have been inspected and in the latest round eight more were scrutinized.

Internal inspections have led to several inquires into SOE executives, including Ren Yong, assistant general manager of Dongfeng Motor Corp.; and China Southern Airlines’s vice general manager Chen Gang and its operations director Tian Xiaodong.

The CCDI will also establish new offices in eight central government departments and the CPC Central Committee, according to the communique.

The CCDI currently has offices in 52 of over 140 central Party and government departments. In December, it established seven new offices in central government departments, the CPC Central Committee, the top legislature and national political advisory body.

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