(Yicai Global) March 2 -- Three months since the implementation of China’s personal pension system, the number of participants has reached 28.17 million, according to Vice Minister of Human Resources and Social Security Li Zhong.

The current annual payment ceiling for personal pensions is CNY12,000 (USD1,740) and will be adjusted in due course, Li also told a press conference today.

According to Li, the investment scope of personal pensions now includes 137 public funds approved by the government, 19 commercial pension insurances, 18 wealth management products and 465 savings deposit products. Investment products will be further expanded.

Public data show that by the end of last year, the number of people participating in basic pension insurance for urban workers and urban and rural residents exceeded 1.053 billion.

To enrich the pension system, China has launched personal pension products that are tax deductible in 36 cities since the end of last November.

According to the rules, individuals who buy these products can enjoy before-tax deductions for personal income tax on the amount paid during the contribution period, and pay no tax on investment income and a lower tax rate of 3 percent on receipts.

In addition, the pension system includes national basic pension and corporate and occupational pensions, as well as individual pension products offered by commercial insurance institutions.

Editor: Peter Thomas