{
  "title": "Pension Reform in China: The Need for a New Approach",
  "publication": "IMF Working Papers, May 1, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/pension-reform-in-china-the-need-for-a-new-approach-20671",
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  "summary": "The rapid aging of China's population over the next few decades makes it important for a new pension system with broad and adequate coverage to be put in place quickly.",
  "sections": [
    {
      "heading": "Context and problem statement",
      "content": "- Rapid aging of China's population over the next few decades makes it important for a new pension system with broad and adequate coverage to be put in place quickly.\n- Pension reforms, first initiated in 1997, have become bogged down in difficulties over dealing with the \"legacy costs\" associated with the relatively more generous benefits provided under the old system.\n- The paper argues that the legacy problem should be separated from the problem of setting up a new pension system."
    },
    {
      "heading": "Key findings",
      "content": "- The legacy costs of the old system are a major impediment to reform and have stalled progress since reforms began in 1997.\n- A new pension system should aim to cover both urban and rural workers.\n- The need for timely action is emphasized given demographic pressures from rapid population aging."
    },
    {
      "heading": "Concrete proposals and policy recommendations",
      "content": "- Separate legacy liabilities from the institutional design and financing of a new pension system.\n- Design and implement a new pension system that:\n  - Provides broad coverage across urban and rural populations.\n  - Delivers adequate benefits while taking into account fiscal implications of legacy costs.\n- Address legacy costs through mechanisms distinct from the operational framework of the new system (the paper suggests separating the legacy problem from system design).\n\n---\n\n Content in this bundle\n\n- 1. Demographics\n  - 1. Demographics (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. Demographics (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/pension-reform-in-china-the-need-for-a-new-approach-20671"
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    "Authors: Steven V Dunaway, Vivek Arora",
    "Published: May 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451866735.001",
    "Rapid aging of China's population over the next few decades makes it important for a new pension system with broad and adequate coverage to be put in place quickly.",
    "Pension reforms, first initiated in 1997, have become bogged down in difficulties over dealing with the \"legacy costs\" associated with the relatively more generous benefits provided under the old system.",
    "The paper argues that the legacy problem should be separated from the problem of setting up a new pension system.",
    "The legacy costs of the old system are a major impediment to reform and have stalled progress since reforms began in 1997.",
    "A new pension system should aim to cover both urban and rural workers.",
    "The need for timely action is emphasized given demographic pressures from rapid population aging.",
    "Separate legacy liabilities from the institutional design and financing of a new pension system.",
    "Design and implement a new pension system that:",
    "Address legacy costs through mechanisms distinct from the operational framework of the new system (the paper suggests separating the legacy problem from system design).",
    "**1. Demographics**"
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