<strong>China: HongyunHonghe Holds Symposium on Housing Funds, Annuities</strong>

Source from:  HongyunHonghe Groupa 07/10/2013

HongyunHonghe Tobacco Group in southwest China's tobacco-producing Yunnan Province – the largest Chinese tobacco manufacturer – held on June 26 a symposium on exclusive subjects on regulating the management of housing provident funds and enterprise annuities of the tobacco group.

The meeting was attended by HongyunHonghe leaders Yao Qingyan, Wu Yi, Gu Hong, Bi Fenglin and Tian Dongming and chiefs of all the production factories of HongyunHonghe in Yunnan and the relevant departments of HongyunHonghe. Besides, the leaders of Xinjiang Cigarette Factory and Ulanhot Cigarette Factory affiliated to HongyunHonghe also attended the meeting via a teleconference link.

The meeting was presided over by HongyHonghe Deputy CEO Bi Fenglin. Luo Jianhua, secretary of HongyunHonghe's Board of Directors and director of the Human Resources Department of HongyunHonghe, conveyed major spirits of the recent symposiums respectively held by the STMA and China Tobacco Yunnan Industrial Co., Ltd. on exclusive subjects on regulating the management of housing provident funds and enterprise annuities.

On June 19, the STMA held a symposium on exclusive subjects on regulating the management of housing provident funds and enterprise annuities. STMA Deputy Director-General Li Keming attended the meeting and delivered an important address to make comprehensive and in-depth explanation of the efforts of the tobacco industry of China to regulate management of housing provident funds and enterprise annuities, and to make careful planning and arrangement for the work of regulation from the high perspective of the requirement of the tobacco industry.

In the address, Li Keming emphasized that China National Tobacco Corporation and its affiliated enterprises – which all belong to enterprises operated by Central Government agencies – must strictly abide by the relevant policies of the State governing income distribution.

In accordance with the relevant requirement of the STMA and China Tobacco Yunnan Industrial Co., Ltd., HongyunHonghe has prescribed major contents of an operation to rectify or regulate the management of its housing provident funds and enterprise annuities, which include the following points:

As of July 1, 2013, the proportion of housing provident funds payable by units or individuals for deposit may not exceed a maximum of 12 percent; the monthly salary base for the deposit of housing provident funds may not exceed a maximum of three times the average monthly salaries of workers in the previous year announced by the statistical offices of the cities divided into districts in which the workers concerned are residing; where the actual income of workers in the previous year is below the ceiling on the deposit, the payment for the deposit must be computed strictly in accordance with the actual income of the relevant individuals as the base for computation, and both units and individuals must strictly follow the relevant provisions in computing and paying deposits for housing provident funds in equal value.

As of January 1, 2013, the proportion of enterprise annuities payable by enterprises may not exceed 5 percent of the total amount of salaries without exception; at the same time, for the part in excess of the 5 percent ceiling hereof paid by enterprises in 2011 and 2012, it must be deducted from the proportion of enterprise annuities payable by enterprises for the 2013-2014 period, and the deductions must be diverted to the State capital gains in a retrogressive way. Enditem