Unified system to be established for Chinese urban, rural residents

China will establish a unified pension system for residents in both rural and urban areas to boost consumption, and labor mobility. That's according to a statement the State Council posted on its website Friday.

The statement says the funding will come from individuals, government and social institutions. The central government also will fully cover pension payouts in China's central and western areas, and will pay half of the pension in eastern regions. In addition, the government will also increase spending on pensions and improve management levels. The system now ties pension benefits to an individual's residency permit, which has discouraged many workers from seeking jobs outside their hometowns.