Under a defined contribution scheme, contributions rates for both the employer and the employees (if any) are fixed at the outset and are defined in the rules of the Scheme. However, the benefit on retirement is not known in advance as it will depend on
- the contributions paid,
- the investment return on those contributions and
- the cost of converting the accumulated fund to a pension at retirement.
Contributions
We offer different contribution rate structures designed to best suit your needs:
- Flat : a single rate of contribution applicable to all members
- Age-Related : the scale of contributions increases with the age of member
- Service-Related : the contribution rate increases with the employee’s service in the company
Employees may or may not be asked to contribute to the scheme.
Each member has his own Personal Member Account (PMA) into which units, purchased from our Pooled Pension Funds by the contributions received on his behalf, are credited.
Investments
We offer the flexibility to members to adopt an optimal strategy or life styling approach towards their retirement benefits through investment in our five pooled pension funds:
1. The Equity Fund
2. The Secure Fund
3. The Mixed Fund
4. The Foreign Equity Fund
5. The Foreign Bond Fund
One of these funds could be made available or all five. Each of these funds has established benchmarks.
Follow the funds performance
Retirement Benefits
Upon retirement, the benefits will depend on the number of units held in the PMA of the member and the price of the unit. Under current legislation, up to 25% of the value of the PMA may be taken in the form of a cash lump sum and the remainder will then be converted into a pension.
