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Chinese Ministry of human resources and social security and the Ministry of Finance recently jointly issued guidance, to further improve the basic old-age insurance system for rural residents, put all in accordance with the relevant provisions of urban and rural residents in the basic old-age insurance fund investment, increasing the value of funds, improve the level of personal pension accounts and the fund's ability to pay.
People's daily on Friday quoted the "guidance" on the establishment of the basic old-age insurance benefits urban and rural residents and to determine the basic pension normal adjustment mechanism, urban and rural pension insurance system still exist, the low level of treatment and to determine the normal adjustment mechanism is not perfect and the payment incentive constraint mechanism is not strong and other issues.
Next, we must improve the mechanism of treatment determination. The central government rationally determines the minimum standard of national basic pension according to the factors such as the per capita disposable income and financial status of urban and rural residents. The local pension standard should be raised according to the local conditions, and the urban and rural elderly residents aged 65 or above should be appropriately tilted. For the long-term payment and the minimum payment age, the basic pension should be appropriately extended.
The funds needed to improve basic pension and annual pension standards are local. We should guide and motivate eligible urban and rural residents to participate in insurance and pay more, increase the accumulation of personal account funds, optimize the structure of endowment insurance, and raise the level of treatment.

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