New rule hopefully helps millions of migrant workers join pension plan

GUANGZHOU, Feb. 6 (Chinese media) -- Millions of migrant

workers from rural areas in China are expected to enjoy their golden years with

pensions, like the urbanites do, as the country's top social security authority

has planned to help them systematically gain access to the service.

A document released Thursday by the Ministry of Human

Resources and Social Security to solicit public opinions said migrant workers

could move their pension accounts from one place to another when they move, a

practice that is currently banned for lack of proper regulations.

"With the new rule, I can get pensions like urban

elders when I am old," said Liu Xinguo, a migrant worker who comes from central

Hunan Province. He is now working in a property management company in Guangzhou,

capital of Guangdong Province.

The proposed rule stipulates migrant workers who have

joined pension plans can continue their pension accounts as long as they get

pension premium payment certificates in their previous working places.

Currently, Liu himself puts 100 yuan per month into

his pension account while his company contributes 180 yuan on his behalf.

"If I withdraw my pension account, I will no longer

get the company's input in my pension account," said Liu, who has been working

in Guangzhou for more than a decade.

In fact, many migrant workers who have had pension

accounts, have chosen to withdraw their accounts before they leave the place

where they work and plans to work in other places. They only get the fund they

have paid and cannot get the company's part in the accounts.

Tang Yun, who comes from Jiangxi Province and is now

in Dongguan City, Guangdong, is an example.

Four months ago, Tang joined the pension plan in

Dongguan. But now he plans to go to Shenzhen to find a new job. He had to

withdraw his pension account and only got some 600 yuan in cash from the

account.

"I had no choice but to withdraw as the pension

account could not go to Shenzhen," said Tang, who has been working in Guangdong

for 8 years.

However, with the new regulation, migrant workers

will no longer face the same problem again.

"It is a breakthrough in the pension system for

migrant workers," said Cui Chuanyi, a rural economy researcher of the

Development Research Center under the State Council, or cabinet.

The new method removes the fundamental hurdles for

migrant workers to join pension plans and protects their rights and interests,

said the researcher.

According to figures with the Ministry of Human

Resources and Social Security, China has some 230 million migrant workers. By

the end of last year, only 24 million joined pension programs.

In addition to the transfer ban, high pension

premiums present a challenge to the small number of migrant workers who do carry

pension plans.

According to the country's current regulations, the

pension premium for urban workers include the employer's payment of 20 percent

of an employee's salary and the employee's payment of 8 percent of his or her

salary.

The new rule says employers will pay 12 percent of

employees' salaries and the employee will pay 4 to 8 percent of their salaries

to meet the pension premiums.

"The new rule will reduce the burden of companies and

migrant workers in pension premium payment," said Cui Chuanyi. "That will

encourage more companies to support the establishment of pension plans for

migrant workers."

The new regulations will also make it is easier for

migrant workers to accumulate the 15 years of pension premium maturity required

for receiving pensions, as the pension premium terms will be added when they

move from place to place. In the past, the maturity was reset each time they

withdrew.

Chen Xinmin, a professor at South China Normal

University, said from the point of view of narrowing the rural-urban gap, the

adjustment of the pension system for migrant workers would have a far-reaching

impact.

"Given the fact that migrant workers have become a

major part of China's industrial workforce, the new rule means a significant

step forward to eliminating urban-rural differentiations and improving farmers'

welfare," said the scholar.

The upcoming revision of the pension system for

migrant workers will also accelerate the urbanization process in China, said

Chen.

An official with the Ministry of Human Resources and

Social Security said Thursday the country was also planning to set up a national

social security information consultation system starting with migrant workers.

The system will use the identity card number of a citizen as his or her

life-long social security card number.