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China Times: Ninety Percent of Pension Fund Individual Accounts Are Empty

China Times, a national daily newspaper focusing on economic and financial news, recently reported that the Social Security and Insurance Administrative Center of the Ministry of Human Resources and Social Security (MOHRSS) released its 2015 Annual Report on Social Security and Insurance Developments. The Report showed that, last year, six provinces suffered a loss in pension funds and the money in individual accounts declined by one third. On a national level, by the end of 2015, the entire amount of Pension Fund Individual Accounts was valued at RMB 4,714.4 billion (around US$700 billion). However, the statistics in the Report indicated that only ten percent of that total was actually funded with available money. With a rapidly aging population, China’s pension funds face more and more funding issues, and there is a discussion underway to convert individual accounts to “nominal accounts.”

Source: China Times, October 14, 2016