Issues Roundup |
| |
This update summarizes recent legislative
developments and trends related to retirement
and financial management and highlights
recently passed and pending legislation
that may require employers to take action to
comply with new rules or review existing plans. |
|
| |
Global Retirement Update |
Action may be required:
India - Effective October 1, 2008,
the cost of expatriate assignments
in India increased. Expatriates must
contribute to the Employee Provident
Fund (EPF), and employers must
contribute to the EPF and the Employee
Pension Scheme. Expatriates may not
withdraw their contributions unless
their home country has concluded a
social security totalization agreement
with India or they meet EPF and EPS
eligibility requirements. Employers and
employees contribute 12 percent (each)
up to INR 6,500 per month.
Recent developments
Asia Pacific markets
Taiwan's National Pension system is
effective October 2, 2008. This system
provides assistance to individuals
who are not covered by other systems
or policies in their old age or when
they are disabled. Employees must
contribute to this system on behalf of
their non-working spouse. The total
monthly contribution is 6.5 percent of
the minimum wage. The insured or
employees paying on behalf of a spouse
pay 60 percent of the contribution; the
government pays the remaining 40
percent. The contribution is scheduled
to increase by 0.5 percent each year
until it reaches 12 percent. |
|
The governments of Australia and New
Zealand have reached an agreement
that would permit pension portability
between the two countries. Legislation
will be introduced in 2009.
The Shanghai (China) Labor and
Social Security Bureau is reviewing a
proposal that would give permanent
residents, expatriate workers employed
by Shanghai employers, and residents
of Hong Kong, Macau and Taiwan
markets working in Shanghai access to
the city's pension, health and workers'
compensation systems. Details of the
proposal are not yet available. The India
government announced plans to open
the public sector defined contribution
pension system to all citizens.
The Shanghai (China) labor and Social Security Bureau is reviewing a proposal
that would give permanent residents, expatriate workers employed by Shanghai
employers, and residents of Hong Kong, Macau and Taiwan markets working in
Shanghai access to the city's pension, health and workers' compensation systems. |
|
| |
 |
|
| |
Hewitt China Pension Report 2008
Retirement programs in China have caught much
attention and interest lately by HR professionals
throughout China and companies around the world. |
|
| |
|
Many companies are facing pressure
from shareholders, regulators, and
internal risk management teams to
ensure that the company's retirement
programs around the globe are well established,
well-governed, tax-efficient
systems that expose the company to
little or no risk from financial, fiduciary,
and employee-relations perspectives.
China, along with other large
developing economies, is a quickly
growing market with a well-publicized
talent war raging. Many companies,
while excited about the prospects,
are worrying about their lack of
understanding and clarity on the pension
issue, even among the HR and finance
professionals working in China who have
trouble keeping up with the dynamic
regulatory and market environments.
For deeper insights on this issue,
check out the new Hewitt China
Pension Report 2008.
The purpose of this report is to
provide information and insights to help
a wide range of companies interested
in or having implemented retirement
plans to find out the major concerns,
the challenges, learning, and possible
improvement areas for plan design and
implementation. |
|
Finally, this report provides a
glimpse into the future: Where is the
retirement income system going next?
This report provides you with the
confidence to make informed decisions
regarding how your company will
provide supplemental retirement
benefits to your employees in china.
The report is composed of the
following parts:
- Introduction
- Social security Pension Provision
in China
- Wealth Accumulation Benefits in
China
- Enterprise Annuity
- Hewitt 2008 enterprise Annuity
Survey
- The Future
Contact David Moo, Benefits Consultant,
China (david.moo@hewitt.com) |
|
| |
Check this out
 |
We continue to build further insights and references to assist
HR teams during times of financial and economic crisis.
For further information, check back regularly to these sites:
Worldwide Home Page: www.hewittassociates.com
Worldwide Knowledge Center Index Page:
click here
New Financial Crisis Topic Page: click here |
|
| |
 |
|
|
|
| |
|
|
|
|
|
| |
|
|
| |
Hewitt Quarterly Asia Pacific
is made possible through the combined skills and experience of Hewitt consultants from across the Asia-Pacific region.
For further information please contact:
Hewitt Associates
2601-05 Shell Tower
Times Square
Causeway Bay
Hong Kong
Tel: (852) 2877-8600
Fax: (852) 2877-2701
editor-hqap@hewitt.com |
|
| |
| |
|
