New system needed to invest pension fund

Monday was the deadline for the pension fund investment plan to solicit public opinion. On June 29, the Ministry of Human Resources and Social Security and the Ministry of Finance jointly issued a draft guideline for managing the basic pension fund and solicited public opinion.

In 2013, the Third Plenum of the 18th Central Committee of the Communist Party of China decided to strengthen the management and supervision of the social insurance fund investment, and facilitate the marketization and diversification of their operations.

Since the State Council advocated deeper reforms of employees' basic pension funds in 1995, China has established a basic pension insurance system. In the first 10 years from 1995, the accumulated fund was limited and, hence, there was not much pressure to increase its value.