(Yicai Global) June 23 -- A lack of pension-paying workers, a growing number of retirees and hefty outgoings could cause pension fund problems in China's traditionally industrial areas, such as the northeast, the Ministry of Human Resources and Social Security said online yesterday.
Overall, the fund has enough money to cover outgoings, the ministry said, but has structural distribution problems due to uneven economic development among different regions. Its value is much higher in eastern China than the west and center of the country.
Pension insurance fees paid by workers totaled almost CNY1.58 trillion (USD230 billion) during the first five months of this year, up 23.9 percent from the year prior. Outgoings climbed 23.2 percent to CNY1.35 trillion to give a balance of CNY226 billion, the ministry added, saying the cumulative balance comes in at CNY4.08 trillion. With the economy picking up, pension insurance fees paid by companies jumped 10.4 percent in the first five months, maintaining its double-digit growth.
Based on the data, the Ministry forecasts pension fund income to remain above outgoings and keep pushing up the balance, ensuring retirees will be paid in full on time.