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The Beijing Labor and Social Security Bureau said that the bureau will adjust pension counting and distribution methods this year in order to address common complaints of pension payments to the retired in Beijing being too small.

In principle, the adjusted system will focus more on the establishment of a close and reasonable connection between the amount paid into the pension fund and the payout. After the adjustment, each pay-in amount should result in higher future payouts. "When the contributor has paid for certain number of years, each yuan he pays afterward could bring him additional payouts, which are much higher than the amount paid in to the fund," said Song Jingfeng, vice head of the bureau.

It will elevate the pension amount standard on July 1, and the specific amount is still pending a decision.  

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The full text is available in the January Issue of China Insurance.

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