At a press conference organized by the State Council Information Office on Thursday, Vice Director of National Population and Family Planning Commission Pan Guiyu said the family planning rewards scheme for rural families was a helpful strategy to strengthen the existing rural social security program.

"The rural population forms the majority of China's population, so a rural social security program defines the Chinese social security program," Pan said.

The rewards scheme can be likened to a state pension.

The scheme applies to families with one child or two girls. There aren't many families that qualify under this requirement, therefore the scheme puts little strain on state coffers. Further, qualified persons will only get their rewards from the age of 60. They will receive no less than 600 yuan (US$72.5) a year until their deaths.

Administration-wise, the process has been detailed among local financial departments, population and family planning commissions, agencies and inspection institutions thereby guaranteeing that families get their rewards on time.

In 2004, the Ministry of Finance (MOF) allocated 160 million yuan (US$19.3 million) as its share of the rewards funds. Some 50 million yuan (US$6.1 million) in local supplementary funds were contributed by local governments in the pilot areas of Guangdong, Sichuan, Yunnan, Gansu, and Qinghai provinces, and Chongqing Municipality.

Guangdong has been given the added privilege of being able to upgrade assistance amounts, and pilot areas for the scheme at its discretion.

So far, 145 million yuan (US$17.5 million), or 90 percent of the MOF funds, was distributed in west China. To date, 310,000 people across the country have received their first payments.

In addition, Guangdong and Yunnan provinces, and Chongqing Municipality have since upped pension amounts for extremely poor families that have only one daughter or who have adhered to the national one-child policy.

Related stories:

People Rewarded for Good Family Planning
Family Planning Policy Remains Firm
Rewards for Good Family Planning

(China.org.cn by Li Shen June 10, 2005)