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Guangdong to realize full coverage of rural social pension insurance in three years

From : Peoples Daily online

BEIJING, Jun. 16, 2009 -- The Guangdong Provincial Department of Labor and Social Security stated that the province will launch pilot rural social pension insurance projects in the second half of this year.

As estimated, by the end of this year, the number of insured rural residents will increase by 1.4 million. Guangdong plans to realize full coverage of the rural social pension insurance system in the province in about three years.

At present, 2.2 million of Guangdong's rural residents are covered by social pension insurance, 656,000 of whom receive their pensions monthly.

Following the recent approval of the approach combining personal accounts with basic pension, Guangdong will carry out pilot projects in the Pearl River Delta region, and gradually expand the project to the entire province.

Since the beginning of this year, the number of migrant rural workers covered by work-related injury insurance, medical care insurance or pension insurance declined, as the number of migrant rural workers employed and their wages dropped due to the global financial crisis and the adoption of policies allowing some enterprises in difficulty to postpone the payment of social insurance premiums, said Yang Zhiming, Vice Minister of Human Resources and Social Security.

Because of the "high threshold" for participating in the urban pension insurance system and their frequent migration, a large number of migrant rural workers are not enthusiastic about insurance, while some of them already insured have chosen to cancel their insurance in the process of cross-regional migration.

As problems still exist in medical care insurance, including defects in the continuation of social insurance relations, a lack of medical care service in places beyond insurance coverage and a lack of settlement service for fees incurred, in general the participation rate of migrant rural workers for various types of social insurance is still fairly low.