A retired associate professor will normally receive something in the region of 6000/month as a pension.
Yes, this is more than he or she received as a salary whilst working.
After working for their danwei for four or five years, many academic staff acquire the right to purchase leases on property within the campus, this can be used by themselves and their family for the duration of their lives but cannot normally be sold on to a third party (unless there is some development work taking place and then woa ho ho!). This property is normally sold at a massive discount, something along the lines of 80,000RMB for a two bedroom apartment and can be sold back to the university at any time for the same amount (you lose out on inflation obviously).
In some cases, PhD holders will get the apartment for free after five years, although then it cannot be sold back to the university. Unless things are very bent.
There are other perks as well.
I have no sympathy with the "you get paid so much" argument for foreign workers in the public sector because if you sit down with a pen and pencil and do the math then you realise that on balance you come out a little ahead, but not much. Unless of course you are comparing yourself to entry level TAs and Assistant Lecturers, then you're a golden god compared to their dormitory dwelling existence - but so are established Lecturers and Assistant Professors.
My response to the whole issue is based on how hard people work and whether they do a good job: I don't care if you're black, white or blue, if you're good at what you do then you should be paid a "good" salary, whatever "good" is in your sector and locality. If you spend all day with your thumb up your bum then you shouldn't get thruppence ha'penny.