Prior to the 1990s, Chinese pension benefits were paid from an entirely “pay-as-you-go” system, where current taxes paid current pensions. Since the mid-1990s, however, China has started to reform its pension system. Although there are many challenges to be addressed, the new system—introduced as the population ages and as stateowned enterprises (SOEs) are reforming—is composed of three tiers. They are the National Basic Pension Plan (NBPP), supplementary Occupational Pension Plans (OPPs), and individual savings.
