Retirement System
Retirement System
The company enacted the "Measures for the Allocation and Management for the Pension Preparation Fund" in 2003, was approved to establish a Supervisory Committee of Workers’ Retirement Preparation Fund, and contribute to the full amount of 2% of employees’ monthly wages as the labor pension funds to individual labor pension accounts of the Central Trust China, which was prescribed by the relevant labor laws and regulations during the time, wherein the payment of the employee's pension fully borne by the company was calculated based on employees’ seniority in the course of their service and their average monthly wages six months before retirement. To be line with the Labor Pension Act (hereinafter referred to as “The 2nd-tier new labor pension plan”) enforced on July 1, 2005, for those employees subject to the aforesaid retirement mechanism in the Labor Standards Act choosing to be covered by the 2nd-tier new labor pension plan, or the employees who come to work for the company after the enforcement of the said new labor pension plan, their calculated seniority after the enforcement of the said new labor pension plan is subject to the 2nd-tier new labor pension plan, wherein the amount of labor pension borne by the employer shall not be less than six percent of the employee’s monthly wage, and be deposited to individual labor pension accounts of the Bureau of Labor Insurance, Ministry of Labor by the company on behalf of the employee. Moreover, an actuary is entrusted to provide an analysis report after actuarial calculation as prescribed IAS 19 of IFRS, so as to protect the retirement rights and interests of employees.
