Trial Measures for Implementation of Enterprise Pension

2004/06/15
Prepared from Coudert Brothers China Newsletter

Foreign Trade Law 对外贸易法 (修订)

Trial Measures for Implementation of Enterprise Pension (the Trial Measures)

Issued: January 6, 2004

Effective: May 1, 2004

Issuing Authority: Ministry of Labor and Social Securities (MOLSS)

Main Contents: According to the Trial Measures, which supersede the 1995 Circular regarding Opinions on Establishing Enterprise Supplementary Pension System, enterprise pension refers to the supplementary pension established by an enterprise and its employees on a voluntary basis, in addition to the mandated primary pension. The sources of an enterprise pension fund shall be contributions made by the enterprise and its employees, and profits generated from the investment and operation of the pension funds. The maximum aggregate amount of pension contributed by an enterprise and its employees shall be one-sixth of the aggregate salaries of its employees for the preceding year.

An enterprise may formulate an enterprise pension program after collective negotiation with its trade union or employee representatives, provided that it participates in the primary pension system and has made contributions accordingly, can financially support supplementary pension contributions, and has set up a collective negotiation mechanism. An enterprise pension program takes effect if the labour and social securities authorities at the county level or above issue no objecting opinion within 15 days following its receipt of an enterprise pension programme proposal.

In addition, an enterprise which has established an enterprise pension shall designate a trustee to manage its enterprise pension, including consign qualified agents to manage the enterprise pension accounts, make investments with the enterprise pension funds, as well as entrust such funds.

Prepared from Coudert Brothers China Newsletter. For more information, please send your e-mail to cbchinanews@coudert.com



	Article featured in Business Beijing, June 2004 Publication sponsored by Information Office of the Beijing Municipal Government, Beijing Municipal Bureau of Commerce, Development & Reform Commission of Beijing Municipality, China Council for the Promotion of International Trade (Beijing Sub-Council)