Social insurance law draft will benefit migrant workers

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Source: CCTV.com | 02-16-2009 13:41

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Chinese migrant workers are welcoming a draft law that would allow them greater freedom to make pension contributions and withdrawals. The adjustments will bring concrete benefits to the country's estimated 200 million migrant workers.

The current pension insurance system functions as a  whole only at local levels. Workers must pay premiums  for 15 years in one place before qualifying for an  annuity.

The current pension insurance system functions as a whole only at local levels. Workers must pay premiums for 15 years in one place before qualifying for an annuity. This arrangement has prompted many migrant workers to withdraw their pension contributions before shifting to another place to work.

A migrant worker said, "I've been working here for several months. I'm withdrawing my contributions because I'm going to work somewhere else. Otherwise it'll be troublesome."

More importantly, the draft law calls for a nationally unified pension insurance system to be set up.

Zheng Bingwen, the researcher of Chinese Academy of Social Sciences, said, "The current social insurance system leads to a small amount of capital in cities and counties. This is not good for investment policy making and increasing fund values."

The draft law is seen as a breakthrough in establishing a comprehensive and unified pension insurance system across the country.

Editor:Liu Anqi