Seven fund management entities are providing the investment instruments for the contributions of the non- mandatory central provident fund system, the Social Security Fund (FSS) said yesterday in a statement.
To ensure that the system is smoothly implemented, the FSS held a meeting with the entities earlier to review the latest implementation plans of the non-mandatory central provident fund system and listened to their suggestions for improvement.
During the meeting, the fund required the entities to do a good job of training the people selling the central provident fund products, to regulate the relevant personnel to ensure that standards of professional ethics would be upheld, to introduce suitable pension fund products to their customers, and to provide adequate, timely and accurate information to them. In particular, the FSS wants the participating entities to inform the residents interested in participating in the contribution scheme that the central provident fund belongs to a cumulative old-age security system which requires saving and accumulation for the long term in order to play its role in securing retirement income.
According to the FSS, some entities are currently in preliminary talks and consultation with employers at large enterprises, financial, education and social service institutions that are considering joining the central provident fund. To encourage more employers to join the central provident fund system, there is consensus between the FSS and the entities that they will actively assist employers in entering into service agreements, handle the relevant paperwork, and cooperate with authorities to streamline the application process.
Entities must submit information to the FSS on a monthly basis in accordance with relevant requirements such as the requirement to disclose residents the latest fees and returns on pension funds to residents in a timely manner.