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China's planning to build a sound social security system soon, and to unify the system for both urban and rural areas. The Minister for human resources and social security made the announcement at the fourth China social security forum on Monday.
Minster Yin Weimin says China will make some changes to its social security mechanism.
Yin Weimin, Minister of Ministry of HR & Social Security said "Firstly we will continue to raise annuities for retirees and set up an adjustment mechanism linking annuities to economic growth, salary increase and price level. Secondly we will cover common diseases in basic health insurance and raise reimbursements for health insurance."
Yin Weimin pointed out some weakness in the current social security system. The unemployed senior residents in towns do not have social security. The old annuity system in some government institutions can not meet the current demand. And complementary social security develops slowly.
Yin Weimin said "We will extend social security in rural areas, set up social security for the unemployed population in towns, and unify the social security system for both urban and rural areas."
By the end of June, China's social security covered 245 million people, 100 million more than in 2002. The rural population covered by social security was 60 million, and expected to surpass 100 million by year end.