China's banking and insurance regulator on Thursday announced that it will run commercial pension trials in 10 cities and regions nationwide for one year from Jan. 1, 2023.

The pension scheme, which will be voluntary and operate in a market-oriented and law-based manner, will be piloted in cities and regions such as Beijing, Shanghai, and the provinces of Jiangsu and Zhejiang, according to the circular released by the China Banking and Insurance Regulatory Commission (CBIRC).

The pension plan is a part of the third pillar of China's pension system, supplementing the country's private pension scheme that was implemented recently, according to the CBIRC.

China has a three-pillar old-age insurance mechanism, covering the national basic old-age insurance, the enterprise and occupational annuities, and the commercial old-age financial products and the private pension plan.