Hewitt will undertake component A of the ADB-sponsored pilot programme Policy and Institutional Support for the Social Security Reform Programme.

The programme's aims include examining key policy issues, and strengthening the institutional capability of the Liaoning Social Security Department in performing administrative and regulatory functions in order to effectively implement the tax department's recommendations. The programme also aims to assist central government agencies in evaluating the pilot programme, and to replicate the experience nationwide if the pilot proves successful.

The programme is also aimed at supporting the establishment of an actuarial unit in the social security department, equipping it with an actuarial model, and providing adequate training to enable it to conduct actuarial and policy analysis and long-term social-security projections.

The programme will also help design an integrated Management Implementation Systems platform at provincial level and provide adequate training to the social security department on all aspects of the platform's development and management.

Eric Fiedler, head of Hewitt's China operations, said: "The Chinese Government has assigned high priority to social security reform since it is a prerequisite for successful restructuring of State-owned enterprises (SOEs).

"During the central-planning era, SOEs were responsible for providing social-security benefits, including pensions and health insurance for their employees."

The ageing population and the relatively poor financial performance of State-owned enterprises have placed the social security system under severe financial and management stress.

(China Daily July 17, 2002)