Success cases of Ping An’s account management

Success cases of Ping An’s account management

Annuity account management for a large financial enterprise: the enterprise appointed Ping An as the corporate annuity trustee, account manager, and investment manager.

  • I. Background
    Company profile

    It is a large financial enterprise, with a complicated organization structure. The group company controls over 10 subsidiaries under it, and the subsidiaries have nearly 200 branches under them. Nearly 40,000 employees would join the annuity plan.

    Service requirements

    The enterprise has various levels of companies & branches in provinces, cities and autonomous regions (including Tibet) across China. It has demanding requirements for standardization and consistence of services;

    Financial accounting

    The enterprise’s internal financial accounting is compact and complex. Cost centers do not match perfectly with its organization structure. There’re strict compliant requirements for taxation questions arising from annuity payment, etc.

    Discretion over investment

    The enterprise granted the right to select investment to each employee. Employees have discretion over selecting investment portfolios and switching between them.

  • II. Characteristic services of Ping An’s account management

    1. Tailor-made service schemes: Based on the enterprise’s annuity scheme and corporate features, Ping An designed tailor-made service models and service flows meeting the enterprise’s management requirements.

    1) Based on the annuity scheme, Ping An discussed with the enterprise on materials and data required by each account-managing service. Based on the HR management system’s management model and requirements, Ping An decided standard service items and standard data transfer formats, and assisted the enterprise in adding an annuity management module to the HR management system. The module can generate reports on standard service items in line with standard data transfer formats. HR only needs to exstract reports at the agreed time in each month for handling annuity business with ease. A sound basis has also been laid for future automatic system interfacing and paperless business handling.

    Current status of the enterprise Account-management service measures
    Payment year:January 1 ~ December 31 of the current year. Within a payment year, no new participant can be added, and no payment standard can be adjusted. From each December of a year, the enterprise will solicit employees’ intention to participate, and their intention to apply for suspending the payment. One-off supplementary payment for 2007:When the plan is in operation, the first task is to set up accounts for employees who joined the plan in 2007, and complete the related payment;
    Updating the basic payment base and rate:In each January when payment is made, each payer unit will update the basic payment base and rate. One-off supplementary payment for the 1st quarter of 2008:After the supplementary payment for 2007 is completed, accounts for employees who joined the plan in 2008 will be set up, and the related payment will be completed.
    Performance bonus payment:In each April when payments are made, each payer unit will grant employees the one-off bonus based on their performance appraisal results for the previous year. One-off processing due to employee changes:Employees who leave the enterprise, retire or die within 1 year of implementation of the plan are dealt with in a unified manner. After accounts are set up and payment is made, departure or payment will be processed immediately.

    2) Based on the enterprise’s characteristics and service requirements, we designed the multi-level service models and service flows for the Group, headquarters of its subsidiaries, and branches at various levels. For the core service item of annuity payment, two service headquarters respectively provide over 10 juristic person headquarters of the enterprise in Shanghai and Shenzhen with HQ-HQ services; For low-frequency business requiring approval on capital verification by local government bodies, 35 branches provide the enterprise’s branches across the country with branch-branch services.

    Current status of the enterprise Account-management service measures
    The organization structure is complex. HR management is strict and standard. Financial management is highly integrated. For the core annuity business of annuity payment, the headquarters and branches focus on different work. Based on the enterprise’s characteristics and service requirements, we designed the multi-level service models and service flows for the Group, headquarters of its subsidiaries, and branches at various levels.
    The enterprise’s management requirements Account-management service models Account-management service items
    For annuity payment, in collaboration with integrated financial management, the headquarters control major business’ progress, and annuity payment is transferred at the headquarters level. HQ-HQ:Two service headquarters respectively serve the enterprise’s two juristic person headquarters in Shanghai and Shenzhen. Inception of the plan
    Annuity payment
    Payment of account-management fees
    Addition of employees and investment authorization
    Intemal transfer
    Transfer to the resreved plan
    Low-frequency business requiring approval by local govemment bodies is handled by local branches. Branch-branch:Rhirty-five branches respectively serve the enterprise’s branches across the country. Alterations to employees’ key data(name,age,gender,ID type,ID number,etc.)
    Payment due to retirement,death or settlement abroad.
    Outward transfer of menbers in the reserved plan
    Frequently-changing business involving large numbers of people is completely handled by employees themselves. Employees’ self-service:Employees conduct self-service in the online service system. Alterations to employees’ authorization on own investment allocation
    Switching of employees’ own investment
    Alterations to employees’ own contavt information

    3) For operation organizations within the enterprise with independent management but no separate organization structures, based on the enterprise’s management requirement, we proposed separate account-setting or unified account-setting, for matching account-management services with the enterprise’s internal management structure. For operation organizations requiring separate account-setting, we assisted the enterprise in juristic person authorization, virtualization of organization units, etc.

    Current status of the enterprise Account-management service measures
    The organization structure is not completely consistent with the internal management structure. Take some business units for example: they belong to a certain company in terms of organization structure, but their internal management is completely independent, requiring the account-management services to match their internal management structure. We assisted the enterprise’s HR department in streamlining the internal management structure based on the organization structure, and proposed separate account-setting or unified account-setting based on the enterprise’s management requirements. For operation organizations requiring separate account-setting, we assisted the enterprise in juristic person authorization, virtualization of organization units, etc.

    4) Based on the enterprise’s annuity scheme and HR management flows, we developed the personalized service solutions into detailed rules on services at specific operational levels, for directing HR staff at various levels to clarify various businesses’ turnaround time, application material, handling flows, work efficiency, etc., and clarifying various parties’ rights and obligations during account-management services. We also assisted the enterprise’s HR in training and communication on annuity business, greatly enhancing the HR staff’s business ability. We review the detailed rules on services regularly based on actual operation & service situations, and discuss with the enterprise’s HR for optimization and improvement.