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Retirement System |
The Company has established Regulations of Employee Retirement Plan, a defined contribution pension plan under the Labor Pension Act. Under the Regulations of Employee Retirement Plan, the Company has contributed monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance (new system). In addition to the aforesaid 6% contribution, the employee may freely select to additionally deposit 0%-6% to his/her personnel pension account.
For the payment of the pension under the old system, the Company has a defined benefit pension plan in accordance with the "Labor Standards Act", covering all regular employees’ service years prior to the enforcement of the new system on July 1, 2005 and the service years thereafter of employees who chose to continue to be subject to the old system.Payment of the pension under the old system are based on the service years and the average monthly salaries and wages of the last 6 months prior to retirement. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 (incl.) years and one unit for each additional year thereafter, subject to a maximum of 45 units.The Company contributes monthly based on 2% of employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of employee retirement fund supervisor committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit prior to the end of next March.
The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan (old system) in accordance with Article 6 of the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (i.e., the scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). The utilization is subject to the supervision of the Pension Fund Supervisory Committee, and the Company does not have the right to participate in the operation and management of the Fund.
In addition to setting aside pensions in accordance with the Labor Standards Act and Labor Pension Act, the Company establishes the Employee Stock Ownership Trust Program in 2021 and all the full-time employees who have serviced for a period of three full years may enter into an agreement to pay a fixed amount from his/her wage income on a monthly basis (hereinafter referred to as the voluntary contribution to labor pension). This contribution together with the corresponding bonus provided by the Company (hereinafter referred to as the employer’s contribution to labor pension) is delivered to the trust bank to buy the stocks of the Company at a fixed amount and on a regular basis. The trust bank manages and uses the funds for the benefit of all the program members to help them achieve the goals of long-term saving, cumulation of wealth, and protection of the future life after retirement.
