The corporate pension administration involves multiple roles, and includes many steps such as inception of the plan, account opening, pension payment, income distribution, etc.
After a trustee signed an account management contract with an account administrator, the trustee will provide the account administrator with the plan inception information and the customer information. The account administrator will register the information related to the plan through the account management system, open corporate accounts and personal accounts, and provide the enterprise with the pension participation certificate.
Notes:
Some account administrators can directly handle application materials submitted by enterprises in accordance with the business process agreements signed by trustees and account administrators.
An enterprise makes payment for the members of the plan according to a schedule in accordance with the payment rules developed for the pension scheme, and the payment funds will be directly transferred to the custodian account of the entrusted assets. The account administrator processes the payment details calculated by the account administrator or the payment details provided by the enterprise. The payments will be recorded in accounts after the fees payable match the actual amounts paid, and will be finally reflected in corporate and personal accounts.
Notes:
Some account administrators can directly handle application materials submitted by enterprises in accordance with the business process agreements signed by trustees and account administrators.
The custodian and the investment manager evaluate the NAV and unit price of the corporate pension fund weekly. The account administrator, based on the NAV provided by the custodian, the trustors’ applications and balances of the corporate account and personal accounts recorded in the account administration system of the preceding week, calculate the investment incomes attributable to the accounts of this week, and conducts income distribution on a weekly basis.
The investment alteration flow consists of two steps: investment distribution authorization and investment switching. Investment distribution authorization specifies the ratios for distributing future payments to different portfolio accounts. The total of these distribution ratios is 100%. All the subsequent payments are used to buy investment units in line with these distribution ratios, until a new investment distribution authorization is made. Corporate pension assets may be invested in several different portfolio accounts. The trustors may, based on realities, alter the ratios for distributing pension assets among the portfolio accounts. That is, to conduct investment switching.
Note:
Based on agreement between trustees and account administrators regarding business flows, some account administrators can accept application materials from enterprises directly.
Information alteration mainly includes alteration of rules of the plan, alteration of information of the administrator, alteration of information of the enterprise and employees. The enterprise provides the changed information and the account administrator modifies information of the system.
Note:
In line with the business flow agreement between the trustee and the account administrator, some account administrators can accept application materials submitted by the enterprise.
Employee alteration includes employee addition and employee departure. Employee addition refers to 2 situations: employees’ first participation in the corporate pension plan or employees’ participation in corporate pension plans of other enterprises before their participation in corporate pension plan of this enterprise. The enterprise provides materials of individuals, completes individual information registration and establishment of individual accounts. Employee departure includes: maintenance of accounts after departure, transfer of accounts after departure and internal transfer in the enterprise. The enterprise provides individual materials of the departed employee and the account administrator completes the handling of individual accounts. As transfer of accounts concerns transfer of pension assets of the enterprise, the account administrator shall make corresponding disposal of selling assets in the account, and the trustee shall deliver the asset transfer order to the custodian.
Note:
In line with the business flow agreement between the trustee and the account administrator, some account administrators can accept application materials submitted by the enterprise.
The annuitant can submit application to the trustee via the corporation after retirement or when he/ she is going to settle abroad (if the annuitant is dead, the beneficiary will submit the application instead). The pension administrator will calculate the balance of the account on the evaluation date and the custodian will pay the benefit on the notice of the trustee.
Note:
According to the agreement on work flow between the trustee and the pension administrator, the latter can handle the application submitted by the corporation directly.
