In addition to the transfer ban, high pension premiums present a challenge to the the small number of migrant workers who do carry pension plans.

According to the country's current regulations, the pension premium for urban workers include the employer's payment of 20 percent of an employee's salary and the employee's payment of 8 percent of his or her salary.

The new rule says employers will pay 12 percent of employees' salaries and the employee will pay 4 to 8 percent of their salaries to meet the pension premiums.

"The new rule will reduce the burden of companies and migrant workers in pension premium payment," said Cui Chuanyi. "That will encourage more companies to support the establishment of pension plans for migrant workers."

The new regulations will also make it is easier for migrant workers to accumulate the 15 years of pension premium maturity required for receiving pensions, as the pension premium terms will be added when they move from place to place. In the past, the maturity was reset each time they withdrew.

Chen Xinmin, a professor at South China Normal University, said from the point of view of narrowing the rural-urban gap, the adjustment of the pension system for migrant workers would have a far-reaching impact.

"Given the fact that migrant workers have become a major part of China's industrial workforce, the new rule means a significant step forward to eliminating urban-rural differentiations and improving farmers' welfare," said the scholar.

The upcoming revision of the pension system for migrant workers will also accelerate the urbanization process in China, said Chen.

An official with the Ministry of Human Resources and Social Security said Thursday the country was also planning to set up a national social security information consultation system starting with migrant workers. The system will use the identity card number of a citizen as his or her life-long social security card number.

(Xinhua News Agency February 7, 2009)