?According to media reports the number of empty personal pension fund accounts has grown rapidly in recent years. At the end of 2014, the accumulated value of empty personal accounts was more than 3.5 trillion yuan ($533 billion).

Since 1997, China has implemented a pension fund management system that pools the money in individual pension accounts, which means personal accounts are managed within an accumulated social account. Since the beginning, the premiums paid by employees and employers into personal pension fund accounts have been used to pay the pensions of those that have already retired.

As the number of empty personal accounts has grown bigger and bigger, the central government launched a pilot project aimed at solving the issue in 2001. Although 13 provinces are involved in the pilot project, no other provincial governments have followed up because of the lukewarm trial results in a number of areas.

Recently the Central Economic Work Conference listed pension reform as one of the six key reforms for this year, and proposed accelerating reform of the pension insurance system. The discussion could come up with effective solutions to the issue.

(China Daily 1/08/2016 page8)