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Lenovo introduces corporate pension scheme

By Fu Jing (China Daily)
Updated: 2006-07-07 08:16

The government has encouraged more companies to follow the Lenovo Group in introducing additional pension schemes.

On Wednesday computer giant Lenovo announced an additional pension programme, to ensure its China-based employees quality of life throughout their retirements.

Lenovo is the first Chinese company to register its corporate pension programme, approved by the Ministry of Labour and Social Security.

Together with the social pension insurance required by the government, the voluntary corporate pension scheme, known as enterprise annuity, will increase benefits to working people after retirement.

"We are very proud to be among the first to offer retirement benefits to our employees in China," said Ezra Singer, Lenovo Vice-President of Compensation and Benefits.

Chen Liang, the ministry's Fund Supervision Department director, said the additional welfare offered by the companies should become an essential part of China's pension system, offering a better life for the nation's increasing number of retirees.

"We will design more incentives to encourage companies to follow suit," said Chen. "The money the companies spend on pensions should be tax-free."

However Chen said tax policies in various regions in China are different, presenting a barrier to spreading the availability of corporate pensions.

Lenovo said about 70 per cent of its Chinese employees have applied to join the pension programme and the company and employees will equally share the payments into the pension account.

According to its programme plan, Lenovo employees' pensions will be tripled after they retire.