• Retirement & Compensation Fund for Private Schools

According to the Ministry of Education (MOE), the Retirement & Compensation Fund for Private Schools has been engaging in autonomous investment for more than 4 years, beginning from March 1, 2013. The earning rates for its three different types of investment portfolios in 2017 were: 1.31% (conservative), 5.60% (steady) and 9.76 % (aggressive). If we include about 4% of the remittance loss, the performance for all types of investment portfolios will seem even more remarkable.

To provide a better retirement plan for private school faculty and staff members, the MOE released a fourth type of investment portfolio, the “Life-Cycle Fund”, on September 28, 2017; this was in addition to the current “conservative”, “steady growth” and “aggressive” investment portfolios. Life-Cycle Fund’s investment strategy aims to reduce the allocation of higher- risk assets as the investor ages. Thus this strategy automatically adjusts the allocation of the three types of investment portfolios according to the investors’ (private school teachers and staff members) age: “aggressive at a younger age, steady growth in middle age, and conservative near retirement.” Moreover, this retirement plan has a guaranteed remuneration mechanism which protects the rights and interests of private school teachers and staff members.

This type of investment portfolio was launched in view of enhancing private school faculty and staff's retirement protection. According to the Committee, up to 84% of private school faculty and staff chose to invest their pension in conservative portfolio, which is difficult to resist inflation risk over time, even with a local bank two-year fixed deposit guarantee income.

Life-cycle fund is defined by INVESTOPEDIA as: "A special category of balanced, or asset-allocation, mutual fund in which the proportional representation of an asset class in a fund's portfolio is automatically adjusted during the course of the fund's time horizon. The automatic portfolio adjustment run from a position of higher risk to one of lower risk as the investor ages and/or nears retirement."

If you wish to choose the life-cycle fund or other portfolio, please fill out the online questionnaire for risk assessment and investment options (風險屬性評估暨投資選擇書). Moreover, please be informed that from January 1, 2018 onwards, each pension account can only enjoy free service for portfolio adjustment twice a year; more than that a fixed amount of NT$200 will be charged for each transaction. However, the new policy will not be applied to voluntary contribution pension accounts or pension accounts temporarily without intention for redemption.

Should you have further questions, please contact Chinatrust Commercial Bank (CTBC) customer service below.

CTBC CLIENT SERVICES

·         CTBC's client service time is Weekday 9:00-17:30

·         E-banking and Accounts Inquiries 02-2558-0128

·         Fund Management Committee for Private Schools Faculties 02-2396-2880

·         Investment Consulting 02-2706-0759 (psf@mail.citfund.com.tw)

·         Online service https://ecorp.ctbcbank.com/cts/loginAction.do