On the 5th, the China Banking and Insurance Regulatory Commission (CBIRC) released a notice, stating that in an effort to facilitate the healthy and organized growth of individual pension services, the CBIRC has decided to initiate a pilot program for deferred individual income tax commercial pension insurance and the alignment of individual pension funds.
The notification outlines that companies participating in the pilot program for deferred individual income tax commercial pension insurance should adhere to principles of legality, compliance, proactivity, and user-friendliness. They are required to engage in policy promotion, streamline operational procedures, protect customers’ legitimate rights, and conduct the transition from the pilot program for deferred individual income tax commercial pension insurance to individual pension plan integration. In general, these tasks should be completed by the end of 2023.
As per the notification, pilot companies will cross-verify information provided by the China Bank Insurance Information Technology Management Co., Ltd. with their own records. In cases of discrepancies, pilot companies must individually confirm the information with the China Bank Insurance Information Technology Management Co., Ltd. Within 15 working days from the date of this notification, pilot companies are obligated to establish the details of deferred individual income tax commercial pension insurance policies and provide feedback to the China Bank Insurance Information Technology Management Co., Ltd. Starting from September 1, 2023, pilot companies will cease new customer sales of deferred individual income tax commercial pension insurance products and facilitate the transition of existing policies to individual pension income tax deferred commercial pension insurance policies.
Furthermore, upon receiving policyholders’ requests for policy alterations, pilot companies should prompt them to reconcile payments made for deferred individual income tax commercial pension insurance and individual pension fund accounts for the years 2022 and 2023. In cases where the combined payments for these two categories exceed CNY 12,000 in a given year, policyholders have the option to apply for a refund of the surplus portion of deferred individual income tax commercial pension insurance premiums. Pilot companies are required to obtain confirmation from policyholders regarding their preference for a premium refund. If a policyholder initiates a refund request, pilot companies are expected to validate the related documentation within 10 working days, reimburse the excess premium, and secure confirmation from the policyholder.
