CTBC Bank wins custody mandate from Taiwan’s Pension Fund for Private School Teachers

06 January 2014   Category: News, Asia, Taiwan   By Hui Ching-hoo

Taiwan’s supervisory committee managing retirement, compensation, resignation and severance matters for private school teachers and staff (SCMRC) has entered into a new agreement with Chinatrust Commercial Bank (CTBC Bank) to act as the custodian bank for the Pension Fund for Private School Teachers, according to a report from Commercial Times.   

This is the third time CTBC Bank has been awarded the pension’s custody mandate; the fund is earmarked for the retirement of 60,000 private school teachers in Taiwan.

CTBC Bank General Manager James Chen notes that the pension fund has realised revenue of around NT$1.5 billion (US$50 million) over the past two years. The bank has invested more than NT$10 million into setting up a platform for the retirement scheme, which provides its members with greater flexibility to structure their portfolios.   

The Pension Fund for Private School Teachers was the first Taiwanese pension fund to launch a member choice platform, which came into force in January 2013.

Under the scheme, the members have to register on the platforms relevant to them and have their risk appetites assessed. Employees then choose the investment portfolio best suited to their risk tolerance levels.   

Lai Jin-Nan, executive secretary of the SCMRC, reveals the pension fund has accumulated NT$24.5 billion with an annual return of 5%. He predicts the scheme to double its revenue to NT$3 billion in the next two years.