(ECNS) -- China will adjust the upper limit of individual pension payment timely, the Ministry of Human Resources and Social Security (MOHRSS) announced Thursday.
The private pension scheme has covered 28.17 million people from 36 pilot cities and regions since it was launched last December, said Li Zhong, vice minister of the MOHRSS.
China’s existing pension system has three major pillars: the basic state pension, supplementary pension that enterprises, government departments and public institutions pay for their employees, and the private pension.
According to Li, the private pension scheme features preferential policy support, diversified product selection and more convenient service.
The referential policy support includes deductions of up to 12,000 yuan from the annual taxable income of participants, reduction of the tax burden on pension benefits to three percent, and income from investments would not be taxed for the time being, said Li.
Under the scheme, participants could contribute up to 12,000 yuan (about $1735.28) annually to their accounts.
Official data shows that by the end of 2022, the number of people participating in basic pension, unemployment and work-related injury insurance reached 1.05 billion, 240 million and 290 million respectively, and the total revenue and expenditure of the three social insurance funds reached 13.7 trillion yuan last year.