| Loufeng is under jurisdiction of SIP. Since its launch on Apr 1 1997, provident fund (PF) has been operated openly and fairly with justice and transparency |
| Individual Account (accounting for 44% of monthly gross salary) |
| Consolidated Fund 5% |
Medical Account 8-16% |
Retirement Account 4% |
Ordinary Account 75-83% |
| Use of PF |
| Consolidated with society |
Major illness&Maternity Insurance, outpatient fee |
Withdrawn only after retirement |
House Purchase and rent. Also withdrawn as pension and unemployment compensation |
Noticeable features of PF in SIP
·Responding to payment crisis driven by aging issue, SIP adopted consolidated PF to strengthen the accumulation and growth of the fund.
·A model majored in individual account, efficiently increases transparency of fund use and improve social supervision on fund raising.
·Proportionally divided personal account, is in line with personalized demands such as retirement, medical care and house, in order to meet comprehensive security requests of members. It also unifies the management of social security fund.
·PF in SIP achieves 3 favorable goals, i.e. not paid by the government, no more burdens on the enterprise and no decrease in security level for the employee.
PF Regulation
·Labour and Social Security Bureau in SIP (Provident Fund Management Bureau) is the administrative authority for PF scheme. It maps out, explains and consults the policies concerning PF.
·PF Management Center shoulders responsibilities of charging, payment and account check. A PF joint council, made up of the administrative committee, representatives of investors and employee reps are responsible for the supervision of PF operation. |
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