Ministry of Labour and Social Security, Enterprise Pension Tentative Procedures

Promulgated: January 6 2004
Effective: May 1 2004
Applicability: "Enterprise pension" refers to the voluntary establishment of a supplementary old-age pension insurance system, on the basis of an enterprise and its employees' participation in the basic old-age pension insurance in accordance with the law (Article 2).

Main contents: An enterprise pension may be established if an enterprise participates in a basic old-age pension insurance system and performs its obligation in the payment of fees, possesses the corresponding financial strength and has established a collective consultation mechanism (Article 3). Annual payment of fees by an enterprise shall not exceed one twelfth of its total employee wages for the previous year. Payment of fees by an enterprise and individual employees in aggregate shall not exceed one sixth of the enterprise's total employee wages for the previous year (Article 8). Enterprise pension fund shall consist of fees paid by an enterprise and individual employees, and proceeds from the investment and operations of the enterprise pension funds (Article 9). When an employee reaches the age of retirement as stipulated by the state, she may withdraw the enterprise pension from her personal enterprise pension account on a lump-sum or on a regular basis. Those who have not reached the stipulated age of retirement shall not take out funds prematurely. Enterprise pensions of emigrated employees may be paid on a lump-sum basis at the request of the employee concerned (Article 12).
Repealed legislation: Issue of the«Establishment of <ESTABLISHMENT em ofEnterprise Supplementary Old-age Pension Insurance System Opinions» Circular, Dec 29 1995.