Pension reform in China: Preparing for the future

China is revamping its enterprise-based old-age security system and introdu cing a pension programme financed by the employer employee, and the governm ent through a combination of pooled funds and individual accounts. The new system is expanding coverage to the urban workforce outside the state secto r and protecting benefits against inflation, The decentralised nature of th e pension pools, however limits increases in efficiency and portability of pension benefits. Sustainability of the revised system will require attenti on to fund management regulations and preparation for rapid population agei ng by expanding coverage to rural wage earners and reducing benefits.