Social Security in China

A News Article Presentation by

James Hendrick

Social Security in China

A News Article Presentation by

James Hendrick

A public program to guarantee the welfare of an individual. A public program to guarantee the welfare of an individual.

What exactly is social security?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

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

Recent history of China’s 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/200006/13/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/

Reforms now require 80 percent of the physicians in the Chinese countryside to have at least three year medical vocational training after completing junior high school

Recent history of China’s 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/200006/13/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/

Reforms now require 80 percent of the physicians in the Chinese countryside to have at least three year medical vocational training after completing junior high school

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

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

White paper released Tuesday September 7, 2004

China's Social Security and Its Policy

1. Old Age Insurance

2. Unemployment Insurance

3. Medical Insurance

4. Insurance for Work Related Injuries

5. Maternity Insurance

http://english1.peopledaily.com.cn/200409/07/eng20040907_156193.html

White paper released Tuesday September 7, 2004

China's Social Security and Its Policy

1. Old Age Insurance

2. Unemployment Insurance

3. Medical Insurance

4. Insurance for Work Related Injuries

5. Maternity Insurance

http://english1.peopledaily.com.cn/200409/07/eng20040907_156193.html

6. Social Welfare

7. Special Care and Placement

8. Social Relief

9. Housing Security

10. Social Security in Rural Areas

6. Social Welfare

7. Special Care and Placement

8. Social Relief

9. Housing Security

10. Social Security in Rural Areas

Old-age Insurance

•China is an aging society

•Number of aging people is increasing

•Will peak in 2030’s

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

Old-age Insurance

•China is an aging society

•Number of aging people is increasing

•Will peak in 2030’s

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

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

4.Establishing a Multi-Level Old-age Insurance System• In 2003, nearly seven million people participated in the enterprise annuity program

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

4.Establishing a Multi-Level Old-age Insurance System• In 2003, nearly seven million people participated in the enterprise annuity program

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

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

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

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

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• Hygiene standards• Insurance rate adjustments

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• Hygiene standards• Insurance rate adjustments

Maternity Insurance

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

Maternity Insurance

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

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• Guarantees • Rehab• Education• Employment opp.

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• Guarantees • Rehab• Education• Employment opp.

•Special Care and Placement

• Preferential treatment for servicemen• Compensation for death

•Special Care and Placement

• Preferential treatment for servicemen• Compensation for death

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

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

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

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

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

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

Conclusion of the Information Office of the State Council

of the People's Republic of China concerning China's

Social Security and Its Policy.

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.”

Questions?Questions?