Old age security is one of the first components of the social security system in China to be selected for reform. Originally, China's social security system was designed to deliver many of the social services and benefits to the population through state-owned enterprises. With the structural transformation of China's economy, continued enterprise-based provision of social services serves as an obstacle to labor mobility and state-owned enterprise competitiveness (Naughton, 1995; Liu, 1995). Both enterprises and laborers now must adapt to competing in a market-oriented economy, and their ability to do so will depend in part on reform of China's social security system. The government has made clear the need to shift responsibility for providing social services and benefits from enterprises to a combination of the government, enterprises, community, and individuals.