Shanghai allows private pension accounts to supplement national social security

Laborers in Shanghai can now open their private pension accounts voluntarily, city's human resources and social security authority announced on Friday.

The announcement was made as Shanghai has been selected as one of the first 36 cities and regions to carry out a new scheme to allow laborers to open their private pension accounts, a supplement to the nation's public social security system. Other selected cities include Beijing and Guangzhou, capital of Guangdong Province.

Workers employed by enterprises in Shanghai and covered by the public pension system are eligible to open private pension accounts via the national social security service platform (http://si.12333.gov.cn/), the website of the Ministry of Human Resources and Social Security (http://www.12333.gov.cn/), their digital social security cards, the 12333 app, or commercial banks approved by the China Banking Regulatory Commission to provide the service.

Pensioners can deposit up to 12,000 yuan (US$1,650) per year into the accounts, and payments can be made monthly, yearly or by other structured installment plans. They can invest the money in the accounts in financial products approved by the China Banking Regulatory Commission and China Securities Regulatory Commission, including commercial bank wealth management products, bank deposits, commercial pension insurance and public funds.

By joining the scheme, pensioners can also take advantage of tax reductions and other supporting policies.