Support to Rural Pension Reform and Administration in the People’s Republic of China

The lack of social protection for the elderly in rural areas of the People’s Republic of China (PRC) has, since the 1990s, been seen by the government as a critical issue. The central government introduced a rural pension scheme in 1992 which then ceased in 1999. Since that time, several pilot pension schemes have been introduced by local governments but these were unsuccessful due to several factors. Such factors include unsustainable design and financing, and a lack of organizational capacity to conduct pension administration and related services. According to the National Bureau of Statistics of China in 2009, over 55% of the country’s population are rural residents, and almost two-thirds of the workforce is employed in rural areas. However, only around 10% of this rural workforce is covered by rural pension schemes. The strength of local operational management is also crucial for rural pension schemes service delivery.