Encouragement to Participate in the Voluntary Supplementary Retirement Program

The entities participating in contributions to the retirement program include: employees, employers making contributions for employees, and individuals aged 15 and older who are not working under labor contracts as stipulated by the Labor Code.

Participation in the program by employees, individuals, and employers (contributing on behalf of employees) is entirely voluntary. Contributions are managed through individual retirement accounts. Participants have ownership rights to their individual retirement accounts. The retirement fund management enterprises receive entrusted investments for the retirement fund assets. The retirement fund assets must be managed separately from the assets of the retirement fund management enterprise, the depository institutions, employers, and other retirement fund assets managed by the same retirement fund management enterprise.

2 Methods of Contribution to the Retirement Program

- Contribution through the employer:- The employer contributes to the retirement fund for the employees of their enterprise based on labor management requirements and financial capacity, without contributions from the employees;- The employer and employee jointly contribute to the retirement fund as per the written agreement between the employer and employee.- Direct contribution:- The employee makes the entire contribution to the retirement fund with no contribution from the employer;- Individuals as stipulated in Clause 3, Article 6 of this Decree contribute to the retirement fund.

Rights of the Employer

- To include contributions made to the retirement fund for employees as deductible expenses when determining taxable income according to regulations on corporate income tax;- To decide on the amount and timing of contributions, adjust, increase, decrease, stop, or temporarily suspend contributions; to select and change the retirement fund management enterprise according to the provisions in the written agreement signed between the employer and employee about participation in the retirement program;- To receive back their contributions made for the employees and the investment results from these contributions after deducting related costs in the event that the employee does not meet the conditions stipulated in the written agreement signed between the employer and employee about participation in the retirement program.

Rights of the Employee

- To participate in and enjoy all benefits from the retirement program; to have contributions deducted from taxable income before calculating personal income tax according to the regulation on personal income tax;- To decide on the amount and timing of contributions, adjust, increase, decrease, stop, or temporarily suspend contributions according to the provisions in the contract of participation in the retirement program;- To select and change the retirement program managed by the same retirement fund management enterprise for employees participating in the retirement program through the employer or to select and change the fund management enterprise for employees directly participating in the retirement program;- To be issued an individual retirement account and have the right to access information regarding their individual retirement account; to transfer their individual retirement account to another fund management enterprise when changing the fund management enterprise;- To receive payments from the individual retirement account as stipulated in this Decree; to switch from participating in the retirement fund through the employer to directly participating in the retirement fund;- In case of changing jobs: to continue maintaining their individual retirement account at the retirement fund management enterprise at the previous workplace on a direct participation basis or to transfer their individual retirement account to the retirement fund management enterprise at the new workplace.

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