China’s retirement income system comprises an urban system and a rural social system as well as systems for rural migrants and public sector workers. The urban and rural systems have a pay-as-you-go basic pension consisting of a pooled account (from employer contributions or fiscal expenditure) and funded individual accounts (from employee contributions). Supplementary plans are also provided by some employers, more so in urban areas.
The overall index value for the Chinese system could be increased by:
The Chinese index value fell from 48.0 in 2015 to 45.2 in 2016 primarily due to a reduction in the assumed level of support provided to the poor.