Public Sector Pension Reform: Process, Progress and Institutional Evaluation

In China, public sector pension scheme and private pension scheme had evolved from “accordant” to “discordant” from 1950s to the end of 2014. In this evolving process, “dual track” of pension system shaped up. In recent years, more and more people have challenged abolition of the duality between public and private pension schemes. The Public Pension Reform of 2015 was supposed to re-accord the two pension schemes. But through deep analysis, it is found that: to basic pension, there will be potential risks on payment and longevity as well as divergence of fiscal sustainability among regions; and occupational pension system also faces risks on portability and profitability. Proposals from fairness, portability, and sustainability and investment performance management are provided in the final part of this paper.