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Social Aspects

Employee Benefits, Retirement Systems, and Implementation

1. Employee Benefits

JIA JIE Co., Ltd. (the "Company") enrolls employees in Labor Insurance, National Health Insurance, and group insurance programs.
When the Company records earnings for the year, after paying taxes and making the required appropriations to dividends and reserves in accordance with the law, employee profit-sharing and year-end bonuses are distributed based on performance appraisals.
The Company may provide work uniforms as needed.

2. Retirement Systems and Implementation

Defined Benefit (DB) plan under the Labor Standards Act (LSA).
In accordance with the LSA, the Company maintains a defined benefit retirement plan applicable to (i) years of service accrued prior to July 1, 2005 (the effective date of the Labor Pension Act), and (ii) employees who elected to remain under the LSA after the Labor Pension Act took effect.

For eligible retirees, pension payments are calculated based on years of service and the average monthly wages of the six months preceding retirement: two months of average wages for each full year of service up to and including 15 years, and one month for each additional full year thereafter, subject to a maximum of 45 months.

In Q4 2014, the Company reached a settlement with all employees covered by the former system, settling the old-system annual pension and the Labor Retirement Reserve. On January 30, 2015, the Company obtained approval from the Labor Affairs Bureau to close the special account for the Labor Retirement Reserve Fund and to withdraw the principal and accrued interest.
Defined Contribution (DC) plan under the Labor Pension Act (LPA).
Effective July 1, 2005, and applicable to ROC nationals, the Company has implemented a defined contribution retirement plan pursuant to the LPA. For employees who elect the LPA system, the Company contributes no less than 6% of monthly wages to each employee’s individual account with the Bureau of Labor Insurance. Upon retirement, benefits may be received as a monthly pension or as a lump-sum payment, based on the balance of the individual account plus accumulated earnings.