According to a report by the Chinese Academy of Social Sciences, over a third of China's 32 provincial regions lack the funds to pay the pensions of urban enterprise employees.
Forteen regions failed to make ends meet in 2011. Their total deficit amounts to 76.7 billion Yuan. That's a 13 percent increase from 2010. Twelve provinces and autonomous regions had surpluses above the national average. The majority of them were concentrated in China's east coast, indicating an unbalanced regional development of pension funds. The report also shows that China's pension fund only accounts for 2 percent of the national GDP, which is much lower than developed countries.
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