Center

Nation to draft laws on social security fund management

(China Daily)
Updated: 2006-11-25 08:57

Consisting of pension, unemployment, health, and occupational injury insurance, the annual income of the social security fund increased 20 per cent year-on-year to 696 billion yuan (US$87) in 2005.

"Any way of managing those funds to add to their value should be cautious and based on the premise that they secure," said Tian Chengping, minister of labour and social security.

In another move to protect the funds, the ministry has called on all provinces, municipalities and autonomous regions to establish social security fund supervision commissions.

In addition to beefed-up supervision of social security funds, China also plans to extend its social assistance system to cover all urban and rural residents by 2010.

The new system will mainly consist of financial subsidies to the nation's poorest families and childless elderly people in rural areas, as well as temporary assistance to areas hit by disasters or outbreaks of disease, Vice-Premier Hui Liangyu told the 12th National Civil Affairs Conference on Thursday in Beijing.

Investment in social assistance funds from both central and local treasuries reached 30 billion yuan (US$3.75 billion) in 2005, covering about 100 million needy people, according to statistics from Ministry of Civil Affairs.