China's first corporate annuity plan put into practice via Labour and Social Security Ministry

China's first corporate annuity plan registered with the Ministry of Labour and Social Security (MLSS) was put into practice on Wednesday with the Pacific Pension Insurance Company, according to sources with the ministry.

The corporate annuity plan of the country's computer giant Lenovo will involve a first batch of funds worth 50 million yuan (6.2 million U.S. dollars) and an estimated 20 million yuan per year, with China Merchants Bank as the trustee and account manager.

It is up to the corporation to decide whether to join the annuity plan which will become an integral part of the country's social security system, said Chen Liang, senior official with MLSS.

MLSS in principle accepts the annuity plans of 166 central state-owned enterprises under the supervision of the State-owned Assets Supervision and Administration Commission, Chen said.

The Lenovo annuity fund is expected to be invested in the stock market in July, disclosed sources with Harvest Fund Management Company.

Chen said a document of guidance on annuity funds invested in the stock market is under discussion and expected to be publicized soon.

Source: Xinhua