Development Of Occupational Pensions In China

This thesis takes a comprehensive view on the Hong Kong Mandatory Provident Fund (MPF) and the occupational pensions in Mainland China. The thesis is composed of three parts. First of all, it generally describes the features of occupational pensions. Part Two has a detailed look at the overall system design and operation of Hong Kong MPF. Through in depth examination of occupational pensions and MPF in Hong Kong carried out in the first two parts of the thesis, Part Three analyses the strategy of development of China's occupational pensions by using MPF for reference.China set up a multi-leveled system of social security according to the international three-pillar mode.Occupational pensions are supplementary pensions that are organized by employer. Occupational pensions have increasingly being an important pillar in the system of social security and attract more and more attentions from societies and governments with the urgent need to reduce government's financial burden of basic social security.Most of market economy countries develop occupational pensions. In USA, about 70 % of all companies join the company pensions scheme. In Germany, about one third. In Japan, 60%. As a sharp comparison, only 5.3% as at end of year 2002.Fundamentally, occupational pensions and MPF are the same. They are all related to occupations and provide retirement security for employees. A research on the system and operation of MPF will help to the further construction and improvement of the system of our country's occupational pensions.MPF is a system of privately managed, employment-related, mandatory provident fund (MPF) schemes. Under the MPF System, both employers and employees will contribute a small percentage of the employees' cash income to registered MPF schemes managed by approved trustees. The accrued benefits will be fully vested in the scheme members, can be transferred from scheme to scheme on change of employment and must be preserved until retirement. Whilst the primary objective of introducing MPF isto provide retirement protection to workforce, MPF also has a positive impact on Hong Kong's financial service sector. MPF schemes take fully account of Hong Kong's own social, economy, financial features, focusing on establishing a general social security system while keeping the tax rate at low level. We should benefit a lot by studying on the MPF in developing our own occupational pensions system.