The State Council General Office issued a document on April 6 on standards concerning occupational pensions for government employees.

The occupational pension is a kind of supplementary pension for government employees, in addition to their basic pension. According to the document, the government will pay 8 percent of the total salary while employees will pay 4 percent of their tax-based salaries.

The benchmark payment is the same as that of their basic pension, and the proportion of the payment will be adjusted according to the development of the economy.

The occupational pension fund includes payments by government departments and their employees, investment income of the pension fund, and other funding approved by the government.

Qualified investment institutions will be authorized to manage the investment of the fund, and qualified commercial banks will be chosen as trustees.

The document aims to establish a multilayer pension system, offer a minimum living standard guarantee for government employees following their retirement, and promote a proper flow of human resources.

China started pilot reform programs in government organizations in 2008, requiring these organizations to pay social insurance and also to pay into a pension fund, like other private employers - in a bid to promote social fairness. Prior to the launch of this pilot, government employees were only required to pay income tax.