Wendy Zhang/ Shanghai Daily news

A draft of the Shanghai housing fund management policy, covering many new regulations, was brought up for consideration at the 16th session of the Standing Committee of the Shanghai People's Congress yesterday.
Shanghai formulated the housing fund system in 1991, and by the end of August this year, it had helped a total of 3.1401 million employees to purchase 65.2872 million square meters of properties.
According to the draft, employees meeting the following requirements can receive the savings balances in their housing fund accounts: those purchasing, building or rebuilding homes in which they will live; retired workers; those who will reside abroad; housing mortgage holders; those whose housing rents exceed household incomes by a certain proportion; those unable to work who have ended their relationship with employers; those having difficulties due to serious illness, either theirs, their spouses or a direct relatives; those unemployed for more than two years in a row; those receiving the city's minimum living subsidies.
The draft also clarified that, to prevent enlarging the gap between the high and low income earners, an upper limit must be established for the monthly housing funds both employers and employees are required to pay.
The upper limit will be set by the Shanghai Housing Fund Management Committee every year, and brought up for approval to the Shanghai Municipal Government.
Currently, the city sets a standard amount for the funds at seven percent of an employee's monthly income. In order to be more flexible, the new draft establishes a fluctuating system.
Before making key decisions, the committee is required to collect ideas from both employers and employees.
Those receiving the savings balances in their accounts illegally will be required to return the money and also will be fined 10 to 50 percent of the amount they draw, according to the new draft.