China Life Expands Enterprise Annuity Coverage in Sichuan and Chongqing

China is accelerating the expansion of its second-pillar pension system through innovative local pilots in the Sichuan-Chongqing region. Following a joint policy directive in late 2025, state-owned insurer China Life has partnered with local governments to roll out "talent annuities" in Chongqing and "industrial park collective plans" in Chengdu. These initiatives lower the entry barriers for small and medium-sized enterprises (SMEs), allowing them to offer supplementary pensions to retain key talent while channeling long-term "patient capital" into regional infrastructure.

As China faces an aging population, expanding the second pillar of its pension system is critical to reducing pressure on the state-run first pillar. Innovative local pilots like talent annuities and industrial park collective plans offer a scalable blueprint for bringing SMEs and private-sector workers into the supplementary pension net.

China is intensifying efforts to expand its second-pillar pension system, leveraging innovative local pilots in the Sichuan-Chongqing region to bring small and medium-sized enterprises (SMEs) into the supplementary pension net [6a5e0e45ede12eee035d192d]. Following the late 2025 release of "Document No. 77" by the Ministry of Human Resources and Social Security and the Ministry of Finance, state-owned insurer China Life has prioritized "pension finance" as a strategic focus for the upcoming 15th Five-Year Plan [6a5e0e45ede12eee035d192d]. Historically, enterprise annuities were largely restricted to major state-owned enterprises, such as Dongfang Electric Group, which has partnered with China Life Pension since 2009 and covers nearly 90% of its workforce [6a5e0e45ede12eee035d192d]. To bridge the gap for smaller private firms, local governments are testing new models [6a5e0e45ede12eee035d192d]. In Chongqing’s Dadukou District, a "talent enterprise annuity" pilot launched in November 2025 allows SMEs to initially enroll only core technical and management staff [6a5e0e45ede12eee035d192d]. To ease the financial burden, the local government provides annual matching incentives ranging from 1,000 to 10,000 RMB per eligible employee [6a5e0e45ede12eee035d192d]. Local food manufacturer Chongqing Jingguyuan Food became an early adopter, enrolling its core talent to boost retention [6a5e0e45ede12eee035d192d]. Similar talent annuity pilots are emerging in provinces like Anhui, Jiangsu, and Guangdong [6a5e0e45ede12eee035d192d]. Meanwhile, Chengdu is tackling administrative barriers through "industrial park collective plans" [6a5e0e45ede12eee035d192d]. Under guidelines issued in September 2025, Chengdu Tianfu International Bio-town introduced a collective model that offers standardized templates and centralized filing [6a5e0e45ede12eee035d192d]. This allows SMEs, which often lack dedicated human resources to manage complex pension schemes, to easily opt-in [6a5e0e45ede12eee035d192d]. China Life Pension's Sichuan branch has helped onboard nearly 150 new SME clients under this model since the start of 2026 [6a5e0e45ede12eee035d192d]. Beyond providing retirement security, these expanding annuity pools serve as "patient capital" [6a5e0e45ede12eee035d192d]. In Sichuan, China Life Pension has channeled these long-term funds into local transportation infrastructure and green energy projects, aligning social security expansion with regional economic development [6a5e0e45ede12eee035d192d].