Basic Services

1. Investment Advice – We offer consultation and advice to help companies structure a Provident Fund and help follow through with the establishment and proper registration of the fund in accordance with regulations

2. Provident Fund Management Services – The fund's money would be invested to seek best returns for the desired acceptable level of risk.

3. Reports and Documentation Related to the Provident Fund. Preparation of various reports related to the management of Provident Funds, such as investment management reports, monthly incoming contributions report, and statement of balances for members. These are distributed monthly or annually, as applicable.

4. Cheque Issuing and Withholding Tax Services – The investment management company will issue cheques as payment to provident fund members upon retirement as notified by the Provident Fund Committee, including processing withholding taxes for subsequent payment to the Revenue Department.

Additional Services for Provident Fund Members

1. isseminating investment knowledge to members regarding Provident Funds and offering recommendations to the Provident Fund Committee on investments, diversification ideas, investment plans, as well as Employee's Choice.

2. Each provident fund member can readily monitor their Provident Fund's balance and their own share of benefits by accessing the website or by contacting the Call Center.

3. The Provident Fund Committee will be supplied with fund management progress reports and reports of incoming contributions through the SCBAM website (accessible through a designated password supplied in order to obtain and review the information).

4. Organize activities to foster a close relationship between the investment management company and arranging seminars for provident fund members, such as training and seminar events.

5. Facilitate access to the comprehensive range of financial services offered by the Siam Commercial Bank Group (SCB Group) for provident fund members, such as discounts for fire and automobile insurance, credit cards, etc.

A Provident Fund is a fund jointly established by employees and the employer on a voluntary basis for the purpose of providing financial security for employees that retire or resign from the company or upon death. The fund comprises contributions by the employee and contributions from the employer, pooled together and managed by an investment management company.

Employee's Contribution:
The employee's contribution into the fund is deducted from the salary according to his/her capacity to save and their expected financial needs upon retirement, resignation, or death. Regulations require that the amount of contribution be at least 2%, but not more than 15%, of one's salary.

Employer's Contribution:
The contributions made by the employer for the behalf of the employee is additional to the employee's salary. The amount of contribution will be least the same rate as the employee's own contribution, but not exceeding 15% of the salary. The amount of Employer's Contribution may vary from employee to employee, depending on such conditions as length of employment or membership in the fund, rank of employee in the firm, etc. as incentives or rewards for loyalty to the firm.

Benefits to the Employer

Management 1. Strengthens employer's reputation as a secure workplace that is considerate of its employees' welfare. 2. Improves employee morale towards the company's business and should help raise their performance. 3. Foster a close relationship between employer and staff and may help lessen labour disputes. 4. Reduces employee turnover and helps strengthen continued employment with the company Tax Employer's contribution to the fund is tax deductible against calculation of net income and taxes due. Deductible limit amounts to no more than 15% of each employee's salary.

Benefits to Employees

Financial Security 1. Encourages employees to save 2. Financial security for the employee and his/her family upon termination of employment or if deceased. 3. The law provides legal protection to the Provident Fund's money. Savings Generate Returns 1. The employee should earn a higher return since the money placed with the fund will be invested to optimize returns. The portfolio is managed by experienced fund managers and can generate better returns for the employee than if one were to invest directly on their own. 2. Laws regulating Provident Funds provide assurance to employees that their money would not be misappropriated or invested in excessively risky choices. 3. When investing, the fund manager transacts in the Provident Fund's name and therefore provident fund members can be assured their benefits are aligned and that the fund's progress can be monitored regularly. Tax • Annual contributions by the employee into the fund may be deductible up to 500,000 baht • The Provident Fund an employee is entitled to upon retirement, receives special privileges

Provident Fund Member

Provident Fund Member • Tax deductible for actual amount invested up to a ceiling not exceeding 10,000 Baht per annum. • Portion exceeding 10,000 Baht per annum, but not over 490,000 Baht is deductible from taxable income.

Provident Fund Member Resigning (Years of Employment < 5 Years) • Incorporate this amount into calculation of the year's taxable income.

Provident Fund Member Resigning or Retiring (Years of Employment => 5 Years) • Tax filing may be submitted separately, aggregating the employee contribution plus returns from employee contribution and returns from employer's contribution as base for tax calculation. A tax deduction of 7,000 baht of expenses multiplied by the number of years remaining is allowed. For the remaining balance obtained, half may be applied for further tax deduction.

Termination of employment upon retirement at age over 55 years, membership in the Provident Fund over 5 years, or upon death or disability. • Tax waiver for full amount

Provident Funds can be established in two ways

1. Single Fund that is established with only one employer Fund Size: Fund size of 200 million Baht or larger Investment Policy: Determined by Provident Fund Committee / Employer and may be modified from time to time Discretion of Provident Fund Committee : Full discretion but within the scope defined by the Provident Fund Act Expenses: Proportional to fund size and number of members in the fund; may be specified as expenses to the Employer or the Provident Fund

2. Pooled Fund is co-established by 2 or more employers which may or may not necessarily be affiliated with one another, whereby: Fund Size: No specific requirements Investment Policy: Investment Policy may not be amended since this requires majority resolution from unitholders. If the Employer wishes to adopt a different Investment Policy, it may request a transfer into another fund with an Investment Policy that is more suitable. Discretion of Provident Fund Committee: decisions subjected to joint-consensus with other Provident Fund Committees in the fund. Expenses : Average on fund size in the part of each company

Notice : 1. All Employers belonging to the same Pooled Fund will be under the same investment policy. 2. Each Employer in the Pooled Fund may individually specify employee contribution rates, employer contribution rates, and conditions for disbursements from the Provident Fund. 3. Pooled Funds enable larger fund sizes, and thereby widen the range of investments available, giving returns and risk diversification that are better than separately established Single Funds.

Employee's Choice Type of Provident Fund
Employee's Choice enables the Employee the choice to select an investment policy which may be more appealing and suited to their objectives.

SCBAM offers different investment schemes for the Employee's Choice Type of Provident Funds, providing each member to personally select the investment policy which most closely matches their objectives:

Scheme 1
Investment Policy: Fixed Income Investments
Name of Provident Fund: Unit trusts of SCB Treasury Money Fund (SCBTMF)

Scheme 2
Investment Policy: Fixed Income Investments
Name of Provident Fund: Government bonds, treasury bills, or Bank of Thailand Bonds, cash deposits, state enterprise bonds.

Scheme 3
Investment Policy: Fixed Income Investments
Name of Provident Fund: Cash deposits and fixed income instruments such as government bonds, treasury bills, state enterprise bonds (with or without Ministry of Finance guarantee), commercial bank deposits, notes, promissory notes, bills of exchange, and debentures.

Scheme 4
Investment Policy: Fixed Income and Equity Investments
Name of Provident Fund: Cash deposits, debt instruments, and equities, including government bonds, treasury bills, state enterprise bonds (with or without Ministry of Finance guarantee), commercial bank deposits, deposit notes, promissory notes, bills of exchange, debentures, and stocks.

Scheme 5
Investment Policy: Minimum 65% in Equity Investments
Name of Provident Fund: Unit trusts of SCB SET Index Fund (SCBSET)