The government will reform occupational pensions to make them comparable with the corporate model, China Securities Journal reported Monday, citing unnamed sources. The changes will allow occupational pension schemes to invest in stocks, bank products and trusts. Up to 40 million civil servants are expected to benefit from the reform. Their contribution to the scheme, a type of supplemental pension, is potentially worth 400 billion yuan (US$66.12 billion) a year, Zheng Bingwen, director of the Center of International Social Security Studies at the Chinese Academy of Social Sciences, was quoted as saying. Occupational pensions should allocate at least 70 percent to bond investment but can also consider investment in green industries and clean energy, the report said.
– Contact HKEJ at [email protected]