This volume highlights two severe difficulties with China's current pension system - the urgent and immediate problem of the pension burden placed on state-owned enterprises, and the longer-term predicament arising from a rapidly aging population. State enterprises inherited heavy pension obligations from the central planning era. With the transition to a market economy, employment in the state enterprise sector is declining, while the number of pensioners is rising rapidly. The study recommends a unified pension system that includes both mandatory funded individual accounts and a social insurance scheme. It also endorses a sustainable contribution rate that attaches considerable importance to long-term financial viability (more than 60 years) and examines the risks associated with low compliance rates and low interest rates.