Provident Funds

Provident

Q1 : What is Provident Funds?

​A1: The main objective of the provident fund is that members will have funds for retirement in which members must collect money into the fund, called “savings” which is deducted from the salary at the rate specified by the member and the employer will pay the other additional part, called “contributions.”

Q2 : What benefits will members receive?

A2: 1. Saving money for retirement or after resignation.

      2. Receiving the additional contribution from the university

      3. Saving money under the management of a professional fund management company.

     4. The saving paid into the fund does not need to be calculated for tax purposes, and it can be divided into two parts as follow;

              Part 1: Being tax-deductible in the calculation of taxable income as paid, but not more than 10,000 baht per year.

              Part 2: The excess of 10,000 baht but not more than 15 percent of the salary but not more than 490000 baht 

    5. In the case of a retirement and becoming a member for at least five years or becoming disabled or deceased, the full tax exemption will be granted.

Q3: Who can apply to be a member of Provident Fund?

A3: Permanent Employees ( > 2 year contract)

Q4: Do all employees have to apply for membership?

A3: No, employees can choose whether they want to apply for a provident fund or not.

Q5: What is the rate of saving and contributions that must be remitted to the fund?

A5:      Saving rate:              4-8% of the salary (can be adjusted twice a year)

           Contribution rate:    8% of salary

Q6: Can members request to withdraw money from the fund?

A6: Only can be done when membership has ended.

Q7: When and how will members receive their savings and contributions?

A7: 1. When? Only when membership ended

     2. How? When members resign from the fund or resign from the university, conditions for receiving contributions are as follows:

Membership lifetime Contributions benefit when resigning
< 3 year
0%
3-6 years
50%
6-10 years
75%
>10 years
100%
Q8: If the member dies, who will the fund be paid?

A8: The fund will be paid to the beneficiary specified in the beneficiary specification letter by the member.

Q9: What is "Beneficiary specification letter."

A9: A letter of intent stating that if a member dies, whom the member wishes to give the fund to? After becoming a member, the beneficiaries can be changed as the member wished anytime.

Q10: How will funds be received at the end of membership?

A10: A/C Payee Only

Q11: How can members get information about their funds?

A11: The fund management company will prepare a fund reporting report individually, notifying members twice a year (In June And December every year)

Q12: Who is a fund management company?

A12: Fund management companies are banks or financial institutions or legal entities that are licensed to manage provident funds under the law.

Q13: At present, who is a fund management company of Walailak University?

A13: Kasikorn Asset Management Company Limited since July, 1st 2012

Q14: How many types of investment policies can members choose? Also, what are the policies?

A14:               1. Short Term Fixed Income Gov. and Financial Institute.

                       2. Fixed Income 100%

                       3. Mixed Equity not greater than 10%

                       4. Mixed Equity not greater than 25%

                       5. Mixed Equity and FIF not greater than 25%

                       6. Equity fund

Q15: Can members change their investment policies?

A15: Yes, but not more than twice. The change will take effect every July and January of every year and must notify at least two months in advance.

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