At a press conference held in Beijing yesterday, Lenovo (LNVGY) announced the establishment of a supplemental retirement plan for its employees in China.
Lenovo is the first Chinese company to register its corporate pension program with China's Ministry of Labor and Social Security and one of the first in China's IT industry to establish a corporate pension program for its employees.
"We are very proud to be among the first to offer leading-edge retirement benefits to our employees in China," said Ezra Singer, Lenovo Vice President of Compensation and Benefits. "This is a key milestone for our China employees and marks the continued evolution of Lenovo as a truly world class global organization as well as the strong relationship and deep commitment we have to our employees worldwide."
Lenovo's supplemental retirement program for its China-based employees is a defined contribution plan, funded by joint contributions from both the company and its employees.
It is unique in China for two reasons: first, Lenovo provides additional payments based on each individual employee's years of service with the Company; and second, the amount of company match is based on Lenovo's performance and its achievement of certain financial goals.
Singer added, "The key to Lenovo's success has been – and will continue to be – our employees. The unique structure of this new plan places a focus on employee retention while emphasizing Lenovo's existing high performance culture. We believe it will further enhance our employees' commitment to Lenovo while helping us attract and retain the best talent in the IT industry."
Lenovo has selected corporate pension service providers Ping An Endowment Insurance Company, China Merchants Bank and Harvest Fund Management Company Ltd. to serve as trustee, custodian and investment manager, respectively, of the new plan.