In many places in China, pension institutions have run away, with some elderly people often stealing hundreds of thousands of yuan of pension funds.
China has seen a growing number of service disputes involving pension institutions. In Many places, such as Beijing, Changsha and Nanchang, pension institutions have run away, and some old people’s pension funds of hundreds of thousands of yuan have been swept away, leaving them helpless to protect their rights.
According to the Ministry of Civil Affairs, there are now 42,300 nursing homes with 4.291,000 beds, accommodating 2.146 million elderly people.
In August 2020, some elderly people in Changsha, Hunan province reported that they had paid a membership fee ranging from tens of thousands to hundreds of thousands of yuan and signed a “pension service contract” with An Old people’s Apartment on Fubuhe Road, Changsha. An old people’s Apartment not only promised to book the pension service, but also received dividend income. But not long ago, hsiung, the elderly apartment owner, suddenly ran away.
According to the old people, at least hundreds of people have prepaid funds, as little as tens of thousands of yuan, more than 300,000 yuan. After the boss ran away, not only the old man could not get the money back in advance, but also the salary of the staff in the apartment was lost.
According to an official in charge of the office of Cozy Elderly Apartment, there are only about 30 elderly residents in the apartment, which used to have 110 beds. The elderly spend about 90,000 yuan a month, and the pension service fees they receive barely cover the cost, sometimes defaulting on the rent. The employees, who still have more than 50,000 yuan in unpaid wages, are also looking forward to solving the problem and getting the apartment back on track.
In April 2020, Zhonghua Love Apartment for the elderly, a well-known nursing home in Nanchang, Jiangxi province, which has been operating for 13 years, was also hit by an incident in which its boss “ran away”. The legal representative of the apartment, Zhang Guoxing, was investigated on suspicion of illegally taking public deposits, police said. So far, no results have been announced, and the nursing home has been taken over and run by the local government.
Once institutions run away or declare bankruptcy, the elderly struggle to recover their deposits and service fees.
In 2017, The Shangbaiyi Nursing Home in Tongzhou, Beijing, said it had been forced to move out due to poor management. The 300,000 yuan deposit and service fee collected by the company have not been returned, and the company has not been able to contact the defendant. The Tongzhou District Market Supervision Administration has long revoked the business license of Shang Baiyi Nursing Home (Beijing) Co., LTD.
A number of industry insiders said that the civil affairs departments of the pension institutions for the record by the month generally charged fees, not more than a year. But pension real estate, pension finance, travel pension and other new forms of business, usually adopt the “selling card” pre-sale mode, in the name of selling membership card, preferential card, let the elderly deposit a certain amount, in order to get priority to stay and discount qualification; Individual institutions also promise to return a percentage of the pre-deposited capital and high interest rates in the event of failure to move in, leaving an opening for operators to run away.
As China rapidly enters into an aging society, the implementation of the one-child policy for more than three decades has made old-age care a big social problem. Therefore, the pension industry has become a new highland for capital competition. With the encouragement of government policies, all kinds of capital compete to enter the pension industry, resulting in frequent chaos.
Officials from the Beijing Civil Affairs Bureau said that some of the new forms of old-age care, such as real estate for the elderly and residential care for the elderly, have not been registered in the civil affairs department, but chose to register in the name of service enterprises in the industry and Commerce Department, “taking advantage of loopholes” to evade supervision, and only consumers can be found out because of contract disputes and other reasons.
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