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China's first draft law on social insurance has received praise from intellectuals and workers only days after its release to solicit public opinion. The draft law has attracted the public's attention as it sets to tackle the urgent problems within the current social insurance scheme. Shuangfeng takes a closer look. The draft law on social insurance specifies that it's a common right for all citizens to pay premiums and enjoy social insurance for old age, medical care and unemployment.
The law also allows workers to pay pension premiums in one place and draw money in another, if they migrate to other cities or provinces. Experts say this stipulation is particularly significant as it will solve the problems in the current social insurance program, which has not previously protected workers' interests well enough. Zheng Gongcheng is Deputy Dean of School of Labor and Human Resources under Renmin University of China.
"Currently, the pension insurance system functions as a whole only at local levels. As a result, a worker's personal insurance fund can't be brought with him when they move to another place for work. Such arrangement actually damages workers' interests and is bad for the sustainable development of the country's social insurance system." Currently, a person's contribution to the pension fund increases with the number of his working years. But the contribution is stopped and reverted to the starting level the moment they leave a job to work in another province or region. This unreasonable arrangement has prompted many migrant workers to withdraw their pension contributions before shifting to another place for work.
In light of the situation, the expert says the adjustment made by the draft law will bring concrete benefits to the country's more than 200 million migrant workers.
More importantly, Zheng Gongcheng labels a nationally unified pension insurance system as the most important for people's welfare in the long run.
"The most important is the basic pension insurance because it stays with them after they retire. People will receive old age benefits based on the accumulation of their prior contributions to the insurance system. So we are happy to see the draft law has made a breakthrough of attempting to establish a comprehensive and unified pension insurance system across the country by 2012."
Meanwhile, the draft law has received applause from wage earners, especially young people more likely to change jobs and work in different cities. Wei Xiaoling is a book editor in eastern China's Anhui Province.
"I think the stipulation in the draft law will help me. As my job is not very stable, I may change my job and move into another city for work."
Ji Yao, a sales manager in Beijing, has this to say.
"I worked in Shanghai in the early half of 2008. And now I am in Beijing. Under the current program, what I have paid for pension fund can't be transferred to Beijing. Fortunately, the problem will be solved by the draft law. I totally support it."
The draft law was discussed on Monday by the Standing Committee of the 11th National People's Congress, the country's top legislature. Public opinions will be gathered and submitted to the congress by Feb. 15th, 2009 for further review.
Shuangfeng, CRI News.
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