Pension reform on the way

Pension reform is necessary, said an article in the 21st Century Business Herald (excerpts below).

Pension reform finally has a clear schedule with the government vowing to introduce a plan by the end of 2013 and accomplish the reform by the end of 2015.

In China, there are several kinds of pensions, divided into categories for civil servants, State workers, rural dwellers and urban residents. The pension of a retired civil servant is dozens of times of that for a rural dweller.

The government should set aside a larger share of tax revenue for local governments to meet the rising demand for pensions.

The problem is not a lack of money, but unfair distribution.

The government has an obligation to pay for a basic pension for all citizens.

Those who want to have a bigger pension must contribute accordingly.