SOEs Draft New Enterprise Annuity Mandate Plans Under Long-Term Assessment Rules

In September 2025, four departments including the Ministry of Human Resources and Social Security jointly issued a guideline aimed at improving long-term assessment mechanisms and promoting long-term investment of enterprise annuity and occupational annuity funds. The guideline specifies that these funds should establish assessment cycles of three years or more and standardize performance assessment management.

As of the end of the first quarter of 2026, nationally accumulated enterprise annuity funds totaled about RMB 4.28 trillion, covering about 186,600 enterprises and 33.89 million employees. As of the end of 2025, occupational annuity funds under investment operation in 31 provinces (autonomous regions and municipalities), the Xinjiang Production and Construction Corps and central units reached RMB 3.78 trillion. These figures reflect the substantial scale and broad coverage of the annuity funds.

The guideline provides that annuity fund management contract terms should not be less than three years, with performance assessment conducted over the contract term as the assessment cycle and medium-to-long-term targets as the primary assessment basis. Assessment units should formulate or revise assessment measures, adding medium-to-long-term indicators of three years or more alongside short-term evaluations, and continue to refine the assessment indicator system. The guideline also requires correcting short-term assessment practices, with relevant institutions required to complete rectification within one year of the guideline's issuance.

Starting from the first quarter of 2025, national enterprise annuity performance data published by the Ministry of Human Resources and Social Security has been disclosed on a rolling three-year cumulative return basis, with quarterly and annual investment returns no longer published. The guideline further requires improving annuity fund information reporting and disclosure arrangements, with rolling three-year and five-year performance disclosed annually to reinforce the long-term investment orientation.