Pension plan portability to be probed

The Ministry of Human Resources and Social Security is now seeking public opinion on a new pension regulation, which many see as a crucial step to building a fairer social security system for migrant workers.

The new regulation is designed to make required pension contributions transferrable between rural and urban areas. The ministry published the new regulation Monday on its official website and will seek public input until December 16.

The new regulation stipulates that the pension accounts of migrant workers will be portable, allowing them to receive required employer contributions no matter where they are employed.

After at least 15 years of contributions to their account, they will be allowed to receive pension payments no matter where they live.

Although the policy covers all employees, experts say migrant workers are likely to benefit most from the regulation.

"Many migrant workers in China either have no pension or choose to work in cities but pay their pensions in rural villages," Yang Heqing, director of School of Labor Economics at Capital University of Economics and Business, told the Global Times on Tuesday, "Many of them are forced to return to their villages to receive pension money if they want to retire or simply give up the pension altogether."

Yang said most migrant workers often change jobs and move in and out of cities. "The new regulation will help them secure a pension plan enforced by the government no matter where they choose to live," Yang added.