Information continues to trickle in ever-so-slowly on the so-called new social benefits system that China is rolling out for expatriates here. Now, they’re saying some — not all of us! — will be allowed to retire and to withdraw our pensions here. But who will get it, and who won’t? Nobody seems sure.
Shanghai Daily has more:
The government has so far given only basic details about the scheme, which all foreigners who work in China are supposed to have started paying into from October.
Foreign executives in China have expressed concern that the tax will increase already rising costs, and that the plan is too vague and will be hard for companies to implement.
One of those concerns has been that foreigners will not be able to access money from unemployment benefits or pensions because work visas are tied to jobs and become invalid when a person is no longer employed.
Citing an unidentified Beijing social security official, Xinhua said the government had made a decision on pensions at least.
“Those foreigners who contribute to social insurance and fulfil conditions will get social security, and will be able to, for example, retire in China and draw a pension,” the report said, without providing details of how that might happen.
Money will also be paid back upon “written application at the end of the social insurance relationship,” it said. Otherwise, the money will be kept “until (the person) returns to work again in China.”
Of the 30,000 foreigners working in Beijing, only 2,000 had so far registered to pay the new tax, it said.
That doesn’t sound like an enthusiastic take-up rate.
What do you guys think this means for us all?