The State Council, China's Cabinet, has approved a plan to increase pensions for the nation's retirees covered by social security insurance.

According to a notice jointly released by the Ministry of Human Resources and Social Security and the Ministry of Finance, retirees can see as much as a 4 percent increase in their monthly payments retroactive to Jan 1. The increase is based on the nation's average monthly pension last year.

According to the notice, governments at all levels are required to come up with practical ways to adjust the pension amounts and disburse the additional funds to retirees as soon as possible.