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Tibet initiates new rural social pension insurance system

From : Xinhua

BEIJING, Feb. 04, 2010 -- Tibet distributed the first batch of new rural basic pensions February 3, marking the official initiation of the new rural social pension insurance system in the region and a substantial step forward by Tibet in terms of establishing a social security system covering both urban and rural areas.

Relevant departments made 1-time distributions of basic pensions, which are part of the new rural social pension insurance, for the period ranging from November 2009 to March 2010 to over 4,000 residents in Caigongtang Town in Lhasa during the ceremony for the distribution of the first batch of new rural basic pensions. Each recipient is eligible for 55 yuan basic pension per month.

According to the Tibet Autonomous Region Department of Labor and Social Security, Tibet's new rural social pension insurance system consists of 2 types, basic pensions and individual account pensions. Any elderly person at the age of 60 or above is eligible to receive 55 yuan in basic pension without any fee payment conditions. The standard of the basic pension will be raised in line with economic and social development.

Individual account pensions are made up of personal fee payments, government subsidies, village collective subsidies, donations from other social organizations, and the interest on savings. Eligible insurance participants are those who are between 16 and 59 years of age and pay 100 to 500 yuan annual fees depending on their individual financial capacities. The government subsidizes 30 yuan per recipient per year and village collectives independently determine the subsidy standards. Insurance participants who have continued to make payments for 15 consecutive years and are 60 years of age or above are eligible for different amounts of pensions.

In the wake of China's adoption of the new rural social pension system, several hundred million rural residents will be covered by a basic social security system as urban residents. The ancient rural tradition of parents bringing up sons to support them in their old age will gradually give way to the basic, impartial and universal new rural security system.

To date, 219,500 farmers and herdsmen in Tibet have participated in the new rural social pension system. Hao Peng, vice chairperson of Tibet Autonomous Region, said that each local department is working on the implementation of policies to ensure the full coverage of the basic pension insurance system in Tibet's agricultural and pastoral areas in 2012.