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- Trinidad & Tobago
- Alico Global
Defined Contribution Plan
Simple: An amount of money, usually expressed as a percentage of salary, is allocated at 100% each year for each employee in the plan.
Guaranteed Interest Rates: The GAA fund is invested in high grade investment vehicles. Algico credits interest on all monies deposited in the Fund
Investment Earnings: The GAA fund will be credited with excess funds if the return on investment is greater than the guaranteed interest according to the performance of the GAA monies invested by Algico
Vesting: This feature allows employers to reward and motivate employees who have been with the company over a period of five years.
Retirement Options: At retirement, participants can opt to receive their accumulated funds either in cash or an annuity.
The following annuity options are available:
- Life annuity
- Life annuity guaranteed for a certain period
- Life annuity with contingent annuitant
Laws governing Pension Plans
Pension Plans in Trinidad & Tobago are governed by the Income Tax Ordinance CH. 33 NO 1 Regulations. The Board of Inland Revenue is charged with ensuring that the contents of the Trust Deed and Rules are in compliance with the Regulations.
The Laws state:
- At Retirement (Early, Normal or Late) no employee can receive more than 66 2/3 of his or her annual salary at the time of retirement.
- 10% tax is payable to the Board of Inland Revenue should the employee withdraw from the plan before retirement (pre-mature withdrawal).
- When an employee terminates or dies before 5 years it is considered that the employee is not vested, therefore, a refund of his/her contribution plus interest is payable.
- If an employee terminates, and is vested ie over five years in the plan, the Board of Inland Revenue must approve the refund, if a refund is applied for. A refund of the employee s contribution plus interest is then payable, or otherwise paid in accordance with the Rules of the Plan. If instead of a refund, a Deferred benefit is calculated, a Paid-Up-Pension certificate is issued, so that the member can claim his full benefit at Retirement.
Termination/ Withdrawal
At the time of Termination/Withdrawal or Death, benefits are paid in accordance to the Rules, taking into consideration whether the member was vested or not.
A married female who is vested can be paid a refund without the approval of the Board. She must provide us with a copy of her marriage certificate at the time of withdrawal.
Retirement
Retirement Benefits are payable on the first day of the month following the employees birth date. Retirement Benefits can have a guaranteed period of 5, 10 or 15 years.
If a pensioner dies before the guaranteed period expires, the beneficiary receives the monthly benefit up to the end of the guaranteed period, or unless otherwise indicated in the Rules.
Retirement can be described as Early - 5 years before Normal Retirement Date, Normal - 60 or 65 years, and Late - up to 70 years.
Algico group insurance policies contain certain exclusions, reductions, limitations and terms for keeping them in force. Contact your Algico representative for more information.
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Saving for your retirement