Personal pension implemented in 36 cities

The Ministry of Human Resources and Social Security issued the notice to announce "the first implementation cities (regions) eligible for personal pension". The announcement states that the personal pension system will be implemented in 36 cities or regions, including Beijing, Shanghai and Guiyang.

Different from basic endowment insurance, personal pension is a supplementary insurance system supported by government policies. This system is operated by the market and is completely voluntary.

The first batch of financial institutions to start personal pension businesses includes six State-owned commercial banks, 12 joint-stock banks, five urban commercial banks, 11 financial management companies, 14 securities companies, seven independent fund sales institutions and six insurance companies.

Residents in the implementation cities or regions can voluntarily participate in the individual pension, with an annual payment cap of 12,000 yuan ($1,679), which can be paid monthly, in installments or annually.

Funds from this system can purchase financial products, savings deposits, commercial endowment insurance and public funds that meet the requirements.