Social Security in China

1
Social Security in China A News Article
Presentation by James Hendrick
2
What exactly is social security?
1 the principle or practice or a program of
public provision (as through social insurance
or assistance) for the economic security and
social welfare of the individual and his or her
family
A public program to guarantee the welfare of an
individual.
3

• Recent history of Chinas social security plan.
• irregular management, inefficient fund
  collection and poor payments
• have haunted the sector for years, experts said.
• http//english.peopledaily.com.cn/english/200006/1
  3/eng20000613_42845.html
• In 2000
• 2.7 of GDP was used on health care, compared to
  
• 6.5 of the GDP in Brazil, 6.3 of the GDP
• in Cuba, and 5.2 of the GDP in India
• 15 of the population had healthcare
• China ranked 144 in level of medical care
• http//www.chinatopnews.com/MainNews/English/

4
White paper released Tuesday September 7,
2004 China's Social Security and Its Policy
Information Office of the State Council of the
People's Republic of China the paper
consist of 12 sections about 12,000
words. The first ever releasing by the Chinese
government of the white paper on China's Social
Security Situation and Policies. (The white
paper) will certainly provide forceful momentum
for China's social security to develop in a
faster and better fashion. Quotes from Mr.
Wang Dongjin, Vice Minister of Labor and Social
Security sept. 7, 2004 http//www.china.org.cn/
e-news/news040907.htm
5

• White paper released Tuesday September 7, 2004
• China's Social Security and Its Policy
• Old Age Insurance
• Unemployment Insurance
• Medical Insurance
• Insurance for Work Related Injuries
• Maternity Insurance

6. Social Welfare 7. Special Care and
Placement 8. Social Relief 9. Housing
Security 10. Social Security in Rural Areas
6

• Old-age Insurance
• China is an aging society
• Number of aging people is increasing
• Will peak in 2030s
• Subtopics
• Promoting the Development of a Basic Old-age
• Insurance System for Employees in Urban
  Areas
• Raising Funds for Basic Old-age Insurance Through
  Multiple Channels
• Promoting the Socialization of Management and
  Services for Old-age Insurance
• Establishing a Multi-Level Old-age Insurance
  System

7

• Old-Age Insurance Subtopics
• 1.Development of a Basic Old-age Insurance System
  for Employees in Urban Areas
• Social pool plus personal accounts scheme
• Old-age insurance covers all those who were
  employed in a flexible manner in urban areas.
• 2003 covered 155.06 million, 116.46 million
  of whom were employees
• 2.Raising Funds for Basic Old-age Insurance
  Through Multiple Channels
• Joint premium payment
• Government subsidies
• National security fund
• 3.Promoting the Socialization of Management and
  Services for Old-age Insurance
• Old enterprises responsible for issuing
  insurance
• New Gov. issues old-age insurance
• Lower corruption
• Less work for enterprises
• Equally serve the recipients

8

• Unemployment Insurance
• 1.System to guarantee the basic livelihood of
  employees after job loss
• Help find new jobs
• 2.Standardizing and Improving the Unemployment
  Insurance System
• 3.Promoting Re-employment
• Prompt registration of unemployment
• Guidance services
• 4.Guaranteeing the Basic Livelihood of Laid-Offs
  from State-owned Enterprises

9

• Medical Insurance
• 1.Establishing a Basic Medical Insurance System
  for Urban Employees
• Combination of social pool and personal accounts
• Locally managed
• 2.Improving Medical Insurance Management and
  Services
• Standardize medical services
• Reduce cost
• 3.Improving the Multi-Level Medical Security
  System
• Subsidies for large medical expenses

10

• Insurance for Work-related Injuries
• Injury prevention
• Compensation
• Recovery
• 50 million people joined from Jan. 2004 to June
  2004
• 1.Establishing a Social Pool System for Insurance
  Funds for Work-related Injuries
• All industry and commerce must participate
• 2.Defining the Social Security Benefits
• No fault compensation
• 3.Exercising a Labor Ability Assessment System
• 4.Strengthening Work-related Injury Prevention
  and Occupational Rehabilitation
• Engineering tech.
• Publicity and education
• Safety regulations

11

• Maternity Insurance
• In 2003, 36.55 million employees covered by
  maternity insurance
• 90 days childbirth allowance

12

• Social Welfare
• Raise funds
• Provide benefits for
• Elderly
• Orphans
• disabled
• 1.Social Welfare for the Elderly
• 38,000 welfare organizations
• state and collective run
• 2.Social Welfare for Children
• Education
• Planned immunization
• Tomorrow Plan
• Rehab for disabled orphans
• 3.Social Welfare for Disabled People

13

• Special Care and Placement
• Preferential treatment for servicemen
• Compensation for death

14

• Social Relief
• 1.Guarantee of the Minimum Standard of Living for
  Urban Residents
• Subsistence assistance from local gov.
• 2Natural Disaster Relief
• Quick evacuation
• Self-relief production
• 3.Relief for Urban Vagrants and Beggars
• 909 relief centers throughout the country
• 4.Social Mutual Help

15

• Housing Security
• low rent to improve housing conditions
• 1.The System of Publicly Accumulated Housing
  Funds
• Funds gathered from gov agencies
• Other enterprises
• Used exclusively for employees obtain housing
• 2.Secure housing through low interest loans for
  gov employees
• 3.Generally Affordable and Functional Housing
  System
• Government built, low cost apartments
• 4.The Low-Rent Housing System
• Tax exemptions

16

• Social Security in Rural Areas
• Majority of people live in rural areas
• Low economic development
• 1.Experimenting to Establish an Old-Age Insurance
  System in Rural Areas
• 2.Establishing a New Rural Cooperative Medical
  Service System
• Alleviate poverty caused by illness
• 3.Practicing Rural Social Relief
• "five guarantees" system
• food, clothing, housing, Medicare and burial
  expenses

17
Conclusion of the Information Office of the
State Council of the People's Republic of China
concerning China's Social Security and Its
Policy.
To press ahead with the improvement of the
social security system is an important task for
the Chinese government in its efforts to build
a moderately prosperous society in a
comprehensive way.
18
Questions?