An occupational annuity plan is a long-term, effective employee incentive system spanning a long period of time. For an enterprise pension plan, from the beginning of formulating the plan document until it¡¯s implemented and first contributions are paid it¡¯s a lot of time needed. Even if the enterprise terminates its business operation for various reasons, the operation of the annuity plan will continue until all the members under the plan have fully collected their benefits (or the individual plan is transferred to a new occupational annuity plan). For individual members operation will extend from the time the member starts participating until their retirement, or may even extend until the employee deceases. Therefore, the operation of an annuity plan is synonymous with the long-term interests of the enterprise and its employees.

In addition to the long-term feature, the EA operation may also have the following two main features: firstly, to assure the safety of annuity assets and operation domestic occupational annuity operation currently adopts the standard trust model, i.e, it is conducted through the concerted cooperation of the four roles (trustee, investment manager, custodian and account manager) and any individual company cannot fulfill these roles by itself. This feature of ¡°multilateral service¡± requires that all the service providers can assure their respective service quality and service efficiency, connect and cooperate with each other closely in the course of routine operations services and thus assure the smooth completion of the whole operational process. Secondly, the operation of EA is the material representation of the interests of enterprises and individuals. The long-standing incentive of an occupational annuity plan on employees has to be realized through annuity contribution and benefit payment, specific contents of an annuity scheme have to be implemented while operating annuity, and the investment income has to be realized through the joint operation of the four roles, too. Thus, for an enterprise, this means that selecting an outstanding annuity service provider is extremely important to succeed in the intention that lead to decide for establishing further employee benefit programms.

In general, enterprise annuity services involve the following eight procedures, whereas organizational management, coordination and supervision of all the procedures is conducted by the trustee:

1¡¢Establishing a Plan: The enterprise sets up an annuity scheme, signs trust and entrustment contracts and, after completing filing of scheme and contracts, provides the information on formulating the plan, including details of plan members etc. The custodian opens a separate custody account of fiduciary property for the EA fund for the purpose of the accumulation and payment of the occupational annuity fund contributions. The account manager defines rules in the account management system according to the relevant plan information and creates a corporate as well as as many individual accounts as participants in the annuity plan. Formulating the plan document is the starting point of all enterprise annuity operations services.