CHINA will create a unified pension system, ending decades of disparity in pension benefits between public and private employees that has given rise to widespread public discontent.

    The government will put an end to its “two-track” system, which offers different benefits for public employees, whose pension benefits are paid by the government, and private employees, who receive market-based payments, Vice Premier Ma Kai said at a briefing for the country’s top legislators Tuesday.

    “The conflicts due to differences in pension benefits have been notable and the public outcry has been strong,” Ma said.

    No timetable was given for full implementation of the changes, however.

    The monthly pension a public employee receives in some cases can be twice that of a private employee, China Central Television reported yesterday.

    The government aims to have 95 percent of its 1.34 billion people covered by its pension system by 2020, from 80 percent currently, according to Ma.

    The State Council pledged in February to create a unified pension system for residents in both rural and urban areas that would promote population mobility and boost consumption. But the Cabinet didn’t give a specific timeline for the plan.

    China has the world’s most public servants and staff of publicly sponsored institutions, with government and public institutions major employers.

    (SD-Agencies)