|
Exploring Important Information
1.
Employer
To sustain the employee’s welfare based on the real condition , you should understand and consider employer’s system whether it can support the provident fund.
1.1
How large is your organization? Determine whether you are a large, medium or small company by looking at size of assets or revenue figures comparing to those of other companies in the same industry.
1.2 What is the company’s growth rate? Determine the company’s growth rate by looking at an increase or decrease of sale, income or profit and make a forecast.
1.3 Does employer have the ability to contribute to the fund? This refers to employer’s contribution rate.
1.4 Who will be responsible for the fund and how? Employer should assign a person to be responsible for sending contribution amount to the fund and making a list of members, including other operational tasks. The person can be either from human resource department or finance department.
2.
Employee
You should determine the main characteristic of members in the fund and see how that affect the fund.
2.1 How many employees? Number of permanent and temporary employees.
2.2 What is the employee structure? Determine the proportion of permanent employee and temporary employee, employee turnover, employee age structure, etc. in order to explore the turnover ration that involves operational tasks.
2.3 What is the level of saving ability of employees? Determined by looking at employee’s age or monthly income and then estimating the amount that employee can contribute.
2.4 How much do employees understand about provident fund? Determine the level of understanding of employees in the provident fund and the importance of retirement saving in order to make an educational plan for them properly.
3.
Estimating the fund size
As for the fund size, you may estimate how large it will be. What will the amount of cash inflow and outflow in each month and the trend of growth be.
3.1 How much is the start up fund? For example, on the first day of establishing a provident fund, what would be the sum of employer’s and employee’s contribution?
3.2 What is the amount of employee’s and employer’s contribution in each month? This amount can be estimated under the condition that employer’s contribution must not be less than employee’s contribution.
3.3 What will be the growth rate of the fund? In the future, if there is an increase in employee’s and employer’s contribution or more employees are hired, what will be the fund size?
4.
Asset Management Company
One of the most important characteristic of provident fund is that the fund manager must be a third party and not the employer himself. Therefore, you need to do a research on the people who will manage this fund. These professionals must be licensed by the office of SEC in order that they can operate private fund management business because provident fund is categorized as a private fund. Not only you have to know which asset management companies are operating in Thailand, but you also have to know the characteristic of asset management company by doing research on each asset management company before making a decision.
|
