China announced on Thursday the expansion of a private pension scheme from 36 pilot cities and regions to the entire country, effective from December 15.

As a supplementary pension insurance, this scheme is voluntary for individuals and operated in a market-oriented manner through support from national policies, according to a notice jointly issued by five government departments including the Ministry of Human Resources and Social Security.

The scheme allows Chinese citizens to contribute up to 12,000 yuan (US$1,670) annually to individual pension accounts.

Participants in the scheme can enjoy the preferential policy of deferred taxation, according to the notice.