Pension fund gaps not an inheritance problem

A RECENTLY RELEASED GREEN PAPER on social security has revealed the official pension fund is expected to support retirees older than 60 for 11.6 years, while the remaining life expectancy of the retirees is 19 years, which means deficiencies in the fund because it pays out more than its income. Comments:

What caused the deficiency? Historically, State-owned enterprises and their employees did not pay into a pension fund but they still received pensions upon retirement. Besides, the percentage of people participating in the pension system is low. Compensating for that requires State-owned enterprises to inject more money into the fund, while encouraging more people to participate in the pension system; the idea of making personal accounts non-inheritable is unfair.

Beijing News, May 7