Beijing commits to its implementation of delayed retirement in five years.

On July 6, Beijing Municipal Government releasesBeijing’s Human Resources and Social Security Plan during the 13th Five-year Plan Period on its website. The announcement details the goals and measures to be undertaken in employment, social security, talent development, and wage earnings in the following five years, and confirms the "Implementation of the State’s Basic Pension Plan and Incremental Delayed Retirement Age Policy”, in particular.

Preliminary Implementation Plan of Delayed Retirement

As per the released information of the Ministry of Human Resources and Social Security (MHRSS), the implementation of “delayed retirement” will be carried out “step-by-step” and group by group.

From Baby Steps to Full Coverage

By delaying a few months each year before reaching the targeted full retirement age, for example, a worker’s full retirement age becomes 60 and 3 months from the original 60 after the implementation of the policy; and 60 and 6 months for another worker retiring the following year.

Step-by-Step and Group-by-GroupImplementation of the Policy

Su Hainan, vice-chairman of the Chinese Society of Labor, explainsthe step-by-step implementation of group-by-group delayed retirement hadbetter start with female cadres because of “their suitable physical conditions and the society’s acknowledgement ofit as the best possible choice to minimize protest and come to aconsensus.”

Nevertheless, an anonymous officer of the MHRSS ascertainsa five-year transition period will be given after soliciting opinions following the plan’s announcement before itbecomeseffective in 2022.

Source: Beijing News, China Economic Net

15 Pilot Cities Launch Long-term Care InsuranceScheme.

The Human Resources and Social Security Departments and BureausinHebei, Jilin, Heilongjiang, Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Shandong, Hubei, Guangdong, Chongqing, Sichuan (metropolitans), and Xinjiang Production and Construction Corps:

It is a strategic undertaking and a major people's livelihood project to explore a long-term care insurance system to cope with the growing aging population and stay consistent with the advancement of social economy, and this is also a critical step to establish a healthy social security system. The long-term care insurance system will ensure a basic living standard for the disabled and elevate their life quality and esteem. It is an exertion of traditional Chinese virtues,in order to enhance people’s welfare, social justice and stability. It gives stimulation to the silver industry and creates an employment channel for the elderly nursing caregivers. According to the resolution of the Fifth Plenary Session of the 18th CCCPC and the mission outlines of the 13th Five-year Plan, a set of opinions have been given for pilot implementation of the long-term care insurance system.

I. Guidelines and Principles

(1) Guidelines

Administer the Party’s resolutions of the 18th National Congress, the spirit of the Third, Fourth and Fifth Plenums of the 18th CCCPC, the guidelines of Deng Xiaoping Theory, core elements of the “Three Represents”, the Scientific Outlook, and the series of President Xi Jinping’s speeches and abide by the overall “Five-in-One” layout of the economic, political, cultural, social, and ecological progress and the strategic plan of the “Four Comprehensives” to drive ahead the exploration of a long-term healthcare insurance system for a healthier, fairer and more sustainable social security system to escalate people’s realization of security and wellbeing.

(2) Principles

Adhere to the people-oriented principle to address the long-term care insurance of the disabled. Improve people's living quality and care. Cling to the basic insurance system,and based onregional economic development levels and affordability of different segments of society,determine reasonably the coverageand benefits of the basic insurancescheme. Abide by the principles of responsibility sharing, paringrights with obligations and multi-channel financing, to ensure a reasonable division of financial responsibility and insurance responsibility. Stick to adaptive measures based onregional conditions to meet with the targeted task and basic policy for thelong-term healthcare care insurance system, and formulate specific measures and policy criteria. Adhere to an innovative mechanism to explore a sustainable development system that can improve social securityperformance and managerial level. Carry out an integrated coordination to ensure functional operability of a variety of social security systems so as to deliver a synchronized advancement of the health industry and associated services.

II. Objective and Mission

(3) Goal

Explore and establish a social mutual aid fundraising scheme to fulfill the finance or services of a social insurance system needed by a basic, sustainable long-term care for the disabled. Set a 1-2-year pilotperiod for experience accumulation before finalizing a policy framework of a long-term care insurance system suitable for a market economy of China’s socialism during the 13th Five-year Plan period.

(4) Principal Mission

Analyze the policy of coverage, premium and service payment for a long-term care insurance;

Explorethe criteria and administration method for the determination and grade evaluation of demand for long-term care;

Determine the long-term care providers needed, evaluation of caregivers’ service quality, agreement administration and charges standards;

Determine the long-term care insurance management standards and operation protocols.

III. Basic Principles

(5) Insurance Scope

The long-term care insurance system is designed for those stricken by long-term disability, aiming to reduce the costs associated with basic medical and non-medical care of the disabled. The pilot citiescan determine the key groups to be insured and insurance coverage based onthe affordability of their respective scheme,and adjust insurance coverage and benefits per regional economic status.

(6) Insurance Coverage

During the pilot period, the long-term care system in principle covers those who are insured byemployees’ basic medical insurance (employees’medical insurance, in short). The pilot citiescan take adaptive approachesbased on regional situations to balance the fundraising and insurance needs before finalizing and adjusting reasonably the coverage.

(7) Financing

Consolidated booking, carried-over and reallocation of balance, and premium are three mechanisms to finance the pilot operations before switching to the established mutual aid and responsibility sharing financing scheme for the long-term care insurance. The financing criteria shall be based on regional economic development levels, demands for long-term care, service costs, insurance coverage and benefits levels,anddeterminedby using the modes of revenue vs. expense, balance, and credit, reasonably adapted to the development of social economy and insurance scope.

(8）Service Payments

The long-term care insurance scheme shall pay (on a pro rata basis) care providers and caregivers for prescribed services. The cumulative paymentfrom the scheme is generally controlled at the level of70%, according to service levels and modesunder a policy for differentiated insurance benefits. The specific benefit requirements and proportion payable are at the discretion of the pilot cities.

IV. Service Management

(9) Fund Management

Followingthe current social security fund management system, the long-term care insurance fund shall implement independent fund management, appropriation case by case, risk management of complaints, information transparency, internal auditing, fraud prevention, and a monitoring system to ensure the fund’s safety.

(9) Service Management

A monitoring and reviewing system for long-term care providers and caregivers shall be in place based ontechnical management standards forservice content and quality evaluation. Administration of insurance benefitsapplication, qualification evaluation and modificationshall be implemented. Investigate the implementation of a third party oversight to regulate long-term care service behavior and charges. Expense control, budget management and payment collection mechanisms shall be established.

(11) Operation Management

Intensify the construction of long-term care insurance agencies’management and service capacity, regulate their functions, responsibilities and human resource allocation, and speed up the information system establishment. Formulateinsurance agencies’operational rules, optimizetheir service procedures, and set related standards, to form an innovative management and service mechanism. Social insurance agencies shall look into multiple channels and methods for outsourcing management, procurement and customizationof long-term care services and products,anduplift their operation management and service capacityby engaging qualified commercial insurance agencies and other organizations, while ensuring the fund’s safety under effective oversight. Beef up information network construction by interconnecting aged care organizations, medical and health organizationsand other industrial information platforms.

V. Supplementary Measures

(12) Compatibility with Other SecuritySystems

Compatibility with other social security systemsin terms of financing and insurance benefits policies and management. Redundant payments and allowances must be avoided fromcharges and services prescribed in existing social security systems and the State’s law.

(13) Coordinated Construction and Development of Long-term Healthcare Service System

Propel the construction of the long-term care service system, and encourage the participation of the private sector and organizations, long-term care providers and platforms to promote the development of the long-term care service industry. Effectuate supportive policies and funds for employment and entrepreneurship to exhort people’s involvement by subsidizing qualified participants. Build stronger human resources in the long-term care service profession by increasing professional training. Regulate charge-payment policy and resources of service demand and supply. Prioritize home care and community nursingservices. Encourage nursing organizationsto extend services to communities and homes. Spur relatives and neighbors of service subscribers,and voluntary social workers to provide long-term care services.

(14) Establish Multi-tier Long-term Care Insurance System

Pep up social relief and aid, commercial insurance, charity participation to resolve varieties of long-term care demands. Inspire an elderly care subsidy system to ensure the services available for poverty-stricken elders. Urge commercial insurance companies to develop compatible insurance products and services to meet diversified and multi-tier long-term care demands.

VI. Organization

(15） Principals

The pilot work for the long-term care insurance system is policy-driven and influential. Human resources and social security organs must give high alert to strengthen departmental coordination, maintaining a consistent command chain, and synchronizing implementation of every step to conform with the stability requirements as prescribed for the pilot citiesin 2016 (list attached). The human resources and social security organs in the pilot cities must follow the leadership of local governments to shore up manpower allocation to prepare and complete pilotprograms with meticulously deployment and coordination of all involving parties to ensure proper execution. The pilot cities without pilot programs must prepare them as soon as possible and reportthemto provincial human resources and social security department to ensure their implementation by year end. The pilot cities that have implemented their pilot programs shall sustain their implementation policies in conformance with the opinions contained herein.

(16) Mechanism

The pilot work, in principle, isimplemented by the prefecture-level municipality. The interconnection and exchange of information network, briefs, status report, and special topic studies must be reviewed by the local government to summary experience gained. A monitoring and supervision mechanism must be in place to submit quarterly reports on progress and status quo. Scheduled departmental review and supervision on new issues and situations must be implemented, and a coordinated consultation mechanism should be established to collect opinions during the planning session. Professional and expert teams must be established as a coordination platform to solicit social forces to facilitate the work. Increase society’s awareness of the work and the long-term healthcare insurance and associated functions and accomplishments to extend the participation and assertion of the public through directing social opinions to amass social realization to reach consensus and build a sound ambiance for the successful implementation of the pilot work.

Report major issues related to the pilot work to our office.

Attachment: List of Long-term Care Insurance System Pilot Cities

General Office of the Ministry of Human Resources and Social Security

June 27, 2016

Attachment

Long-term Care Insurance Pilot Cities

Chengde City, Hebei

Changchun City, Jilin

Tsitsihar City, Heilongjiang

Shanghai Municipality

Nantong City& Suzhou City, Jiangsu

Ningbo City, Zhejiang

Anqing City, Anhui

Shangrao City, Jiangxi

Qingdao City, Shandong

Jingmen City, Hubei

Quangzhou City, Guangdong

Chongqing Municipality

Chengdu City, Sichuan

Shihezi City, Xinjiang Production and Construction Corps

Jilin and Shandong are two keypilot provinces.