Over a long time, the “unfairness” of two superannuation
systems in the mainland has received much public criticism,
and voices calling for the merger of the double system
have been incessant.
Recently, China’s official authorities released news
the pension reform program has been adopted,
which would “get rid of” dual systems,
along with a general pay rise for civil servants.
The public expressed dissatisfaction and believe that
the so-called “reform” is only superficial and playing
word games with the public.
According to China’s official news on Dec 23rd,
the State Council and the Standing Committee
of the Politburo of the Chinese Communist Party (CCP)
passed the reform program for dual pension systems.
In the future, government agencies and institutions will
be established with the same basic pension system,
but the details of the reform program were not published.
pays all the pensions of employees of government agencies
and institutions, but the pensions of employees of all enterprises
are paid for by the individuals and the enterprises
in accordance with certain criteria.
This leads to pensioners of government agencies
and institutions receiving as much
as two or three times that of pensioners of enterprises.
Mr Gong Shengli is a chief researcher of China’s internal reference
of national conditions, and he says: “Dual pension systems are
two kernels running, the party and the administrative systems
are both operating.
Both of them occupy the political and economic resources
of the country — the party produces the financial burden,
and the administrative system of the country as well.
Both of them spend the taxes paid by the taxpayers
through the Ministry of Finance. For example,
all of the legal systems including the United States, Europe,
United Kingdom, France and Germany,
the parties of a country do not spend a penny
of the country’s, nor the taxpayers’ dime.”
Such a huge difference in treating the pensions of different
employees causes great grievances in Chinese society,
and voices calling for change never cease.
The Financial and Economic Committee
of the CCP National People ‘s Congress conducted a survey
in May, 2014.
49% of respondents expressed their dissatisfaction
with the huge gap between the pensions
of government employees and corporate employees.
Some netizens said sarcastically, the remaining 50% having
no objection is due to their identity as public servants.
Gong Shengli: “Such dual pension systems result
in great injustice in the country no matter what the CCP call it
a”feature of socialism” or “privilege”.
The unfairness is reflected in a number ofaspects
including unfair human survival, unfair social distribution,
and unfair treatment of citizens.”
According to reports by the CCP media, the basic idea
of the dual pension system “reform” is “one unification”,
and “five synchronizations”.
One unification is to develop the same pension payment system
for employees of government agencies and institutions
with employees of enterprises, which are both paid
by the employer and individual employee.
Five “synchronizations” is to synchronize the reform
of government agencies and institutions,
and the development of occupational pension
and basic pension insurance system,
the advancement of pension reform and the wage system,
the reform of payment adjustment mechanism and
the method of calculation,
and simultaneous implementation across the nation.
Regarding this end, “Chinanews” cited the interpretation
of Mr Tang Jun, who is the Secretary of Social Policy Research
Center of China Society Academy, and says,
“To synchronize the advancement of pension reform
and the wage system” means that when the employees
of government agencies and institutions have
their individual share,
the wages for them will be adjusted accordingly.
In other words, the general pay rise of civil servants will happen
after the merger of the dual pension system,
which has no impact on the welfare of employees
of government agencies and institutions.
Some netizens angrily said: on one hand it’s said
that the civil servants have to pay pension insurance themselves,
on another hand it’s said that they will receive a pay rise.
Is this a joke?
In addition, “Chinanews” also quoted the analysis
of a sociology professor at Shanghai University Gu Jun who said:
“The government originally only pay the pensions
for retired civil servants, but now they have to manage
to ‘save money’ for incumbent civil servants.”
Some netizens pointed out that the dual pension system
is actually a shield, and multiple times income difference
behind the shield is fundamental.
If this shield is hit through another shield can be used.
They don ‘t want to cancel the shield.
They really want to play word games.