China officially announced the implementation of a new private pension plan on Friday, a supplement to the nation's social security system.

The Ministry of Human Resources and Social Security said on Friday that the plan will first be carried out in 36 cities and regions, including Beijing, Shanghai and Guangzhou, capital of Guangdong province.

Workers covered by the State-level pension system can now open private pension accounts voluntarily. They can deposit up to 12,000 yuan ($1,650) per year into the accounts, and payments can be made monthly, yearly or by other structured installment plans.