China on Wednesday announced measures to improve the living standards of retired soldiers through pension reforms.

The proposed amendments to the veteran pension system have been approved by the State Council and the Central Military Commission. The General Department of Logistics, the Ministry of Human Resources and Social Security, the Headquarters of the General Staff and the General Political Department of the People's Liberation Army jointly released two notices on the changes.

According to the notices, veterans will be retroactively eligible for a basic pension allowance and occupational pension allowance from Oct. 1, 2014, both of which will be subsidized by the central government.

President Xi Jinping announced a 300,000 reduction to the country's standing troops during the military parade in September.

The cuts -- which will mainly target troops equipped with outdated armaments, administrative staff and non-combatant personnel -- will be accomplished by the end of 2017, Yang Yujun, Defense Ministry spokesperson, said at a press conference following the parade.

At 2.3 million, China now has the world's largest active-duty military, including a 850,000-strong ground force, according to a 2013 government paper.

The improved system will protect soldiers' immediate interests, improve military service as an occupation, motivate military personnel and help with recruitment, an unidentified official with the General Department of Logistics said.

The pension amendment is the latest in a string of policies to safeguard soldiers' interests. In July, the State Council and Central Military Commission adopted an act that encouraged commercial insurance providers to provide products for service people.

The document advocated endowment insurance, health insurance and household property insurance policies, and promised tax exemptions to insurance providers for business related to military units, service people and their relatives.

In April 2012, the top legislature passed the first law on insurance for service people, exempting them from premiums on death and injury insurance as this would be covered by the state.

It also rolled out government-subsidized medical insurance and pension programs for the unemployed spouses of service people who relocate to where their partners are stationed.

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