News Column

China : ICBC Enterprise Annuity Service Brings Benefits to Employees

June 10, 2014

As China entered the stage of population aging with increasingly robust demand for pension security, enterprise annuity has developed rapidly as a way to supplement the old-age insurance system. By the end of the first quarter of 2014, ICBC had managed more than 11 million personal accounts of corporate annuity, with nearly RMB 270 billion of enterprise annuity funds under management. The Bank is also entrusted with RMB 52.8 billion of corporate annuity funds, showing a rapid and healthy growth trend.

Enterprise annuity is a supplementary pension insurance system established by enterprises and employees voluntarily on the basis of the basic pension insurance and is of great significance in safeguarding the life of employees after retirement and improving social security system. ICBC is one of the earliest financial institutions that offer enterprise annuity business and also an annuity management institution with full-suite business qualifications. In 2005, ICBC was one of the first to be qualified as a enterprise annuity account manager and trustee. In 2007, it obtained the qualification of legal person entrusted management. Given the qualification of investment management obtained by its subsidiary ICBC Credit Suisse Asset Management Co. Ltd., ICBC Group has acquired all licenses of enterprise annuity business and has the ability to provide customers with a full package of one-stop corporate annuity services.

In the process of developing enterprise annuity business, ICBC has focused on the service for small and medium-sized enterprises. In response to difficulties of small and medium-sized enterprises such as small capital scale, lack of professionals, and high costs of building pension plan alone, ICBC has launched the service of Ruyi Pension Enterprise Annuity Plan, which helped resolve the difficulties that small and medium-sized enterprises came across in building enterprise annuity system. Through simple working procedure, standardized operating process, normative management model and diversified investment products, the Plan enables many small and medium-sized enterprises and their employees to enjoy the safe, convenient and professional annuity management service. By the end of the first quarter of 2014, ICBC had successively launched three standardized annuity products including Ruyi Pension I , Ruyi Pension II and Ruyi Pension III for small and medium-sized enterprises. It has signed contracts with more than 5,500 corporate clients with RMB 3 billion funds under management.

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Source: TendersInfo (India)

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