Taiwan teacher pension pioneers member choice
09 January 2013
By Hui Ching-hoo
Taiwan’s pension fund for private school teachers has become the first scheme in the island state to introduce a member choice platform. The initiative came into effective on January 1.
A spokesman from the Supervisory Committee Managing Retirement, Compensation, Resignation and Severance Matter for Private School Teachers and Staff (SCMRC) tells Asia Asset Management that the new strategy will be implemented in several phases.
Between January 1 and January 15, private school employees have to register on the platforms relevant to them and have their risk appetites assessed. The test result will be announced in March. Employees will then choose the investment portfolio best suited to their risk tolerance levels between March 1 and March 15. After the mandates have been selected, their contributions will subsequently be diverted into the new accounts between March 20 and March 31.
Retirement scheme members are allowed to review their portfolios on a monthly basis in order to reposition their asset allocations should they wish to do so, the SCMRC spokesperson adds.
The pension fund operates a defined contribution (DC) plan and a defined benefit (DB) plan; it currently holds AUM of NT$18 billion (US$600 million) and $6.5 billion.
More News >
Discuss: Taiwan teacher pension pioneers member choice