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The central government announced on Wednesday that it will build a social security system which will cover more than 1 billion citizens by 2020.

Listed as one of the goals and tasks for building a harmonious socialist society the plan was included in a Communique issued at the end of the four-day Sixth Plenum of the 16th Communist Party of China (CPC) Central Committee on Wednesday.

The plenary session, attended by 195 CPC Central Committee members and 152 alternate members, is the first the Party has held focusing on social development matters.

Minister of Labor and Social Security Tian Chengping said earlier that by the end of 2005, more than 558 million people, or 43 percent of the country's total population, have been covered by basic pension, unemployment, work injury, maternity and basic medical insurance.

He said China accumulated 606.6 billion yuan (US$75.8 billion) in social insurance funds in 2005, and the national social security fund has added more than 200 billion yuan, he said.

However, the growth of social security funds lags behind the demand and China faces hard tasks in further improving its social security system to meet the challenges it is facing, he noted.

The fast and healthy growth of China's national economy and social development and the increasing awareness of the public of social security issues requires China's social security system be improved, said the minister.

(Xinhua News Agency October 12, 2006)