China Pacific Insurance (Group) has unveiled a package of solutions for the city's commercial pension trial set to take place, beginning today.
A joint statement issued by the Ministry of Finance and other departments said that China aims to offer tax benefits from 1 May to aging citizens in Shanghai, Fujian Province and Suzhou Industrial Park to entice them to buy commercial pension insurance.
The policy will usher in a new period for personal commercial pension insurance, one of the pillars of China's pension insurance system that also includes the government-run social pension system and enterprise annuity schemes.
China Pacific Insurance has signed a Letter of Intent with 13 corporations such as the Shanghai Pudong Development Bank, Shanghai Construction (Group) Corporation and Shanghai Foreign Service (Group) for their employees to enrol in the commercial tax-deferred pension scheme, reports the online news website, Shine. The insurer plans to draw more employers into the scheme.
The insurance company has also built platforms with enterprises, which will enable their employees to enjoy easy access to the pilot insurance solutions. In addition, with the help of an online calculator developed by the insurer, customers will quickly be able to find out exactly how much they should pay for the products and how much they can receive after retirement.