China to make transfer of enterprise annuity personal accounts easier

China will roll out an online platform nationwide on Jan 1 that will allow workers to digitally transfer their enterprise annuity personal accounts as they move between employers to remove frictions in the supplementary pension system amid rising labor mobility.

The Ministry of Human Resources and Social Security issued interim rules detailing the new system on Friday.

The unified digital gateway — accessible via the national social insurance public service platform si.12333.gov.cn, the 12333 app, and e-social security cards — will enable workers to apply for transfers and track their progress in real time.

The ministry called on trustees and account managers to upgrade their IT systems to ensure the new procedures function smoothly.

Enterprise annuities — voluntary occupational schemes sponsored by employers and employees — form the second pillar of China's multi-layered retirement system, which is anchored by a mandatory basic state pension as the first pillar and complemented by individually funded personal pensions as the third pillar.

As of the end of March, accumulated enterprise annuity funds stood at 4.28 trillion yuan ($632 billion), with net investment assets of 4.25 trillion yuan and a cumulative three-year return of 11.31 percent, according to ministry data.