The annual return rate of the pension funds entrusted for investment by local governments in China has reached 5 percent since the end of 2016, according to a report released on Saturday by the National Council for Social Security Fund (NCSSF).

The local pension fund is part of the basic pension fund. The central government started market operation of the basic pension fund in December 2016, with the aim of preserving and increasing its value.

Since then, the local pension funds managed by the NCSSF have earned an investment income of 306.67 billion yuan, achieving an average annual investment return rate of 5 percent, according to the report.

In 2023, investment income of the local pension funds amounted to 39.58 billion yuan, with an investment return rate of 2.42 percent.

The report went on to say that the total assets of the basic pension funds had reached over 2.23 trillion yuan by the end of 2023. (CCTV)