The National Pensions Law regulates when members
can claim their benefit. As a member of Silver Thatch Pensions,
benefits are payable upon your death, medical disability, retirement
or if you depart the Cayman Islands and establish a residence
in another jurisdiction.
Retirement
When you retire, you will
have two options for receiving your retirement benefits: an annuity
or a retirement income fund.
Annuity. If
you elect this option, all of your Silver Thatch investments
will be cashed in and the money used to buy an annuity. There
are different types of annuities available, but in all cases
an annuity guarantees you a fixed income for life.
The amount of your annuity
income will depend on a number of factors, such as the amount
of money available to purchase the annuity, your age, the type
of annuity you buy, and interest rates at the time of your annuity
purchase.
If you have a spouse at
the time of your retirement, your annuity must (by law) include
a joint and survivor benefit. This will ensure that if you die
before your spouse, the annuity will continue to pay your spouse
a fixed, lifetime benefit.
Retirement income fund. If
you choose this option, a portion of your Silver Thatch investments
will be cashed in at retirement and paid to you. Amounts will
also be cashed in and paid to you on a regular basis throughout
your retirement.
Here's how it works
At retirement –
You can cash in up to 10% of the value of your Silver
Thatch investments. Every six months thereafter, 2.5%
of the value of the investments remaining will be cashed
in and the proceeds paid to you.
Starting in the year following your
retirement –
If the value of your remaining investments is higher at
the end of the year versus the beginning of the year (after
your benefits have been paid), the difference will be
cashed in and the proceeds paid to you. If the value of
your remaining investments is lower, no additional payment
will be made.
The retirement income fund
option will not be available to you at retirement if the value
of your Silver Thatch investments is US$100,000 or less.
Trustees have the discretion
to change the provisions of a retirement income fund to protect
the interests of a retired member and to help ensure payments
continue for the life of that member. Changes require the consent
of the Superintendent of Pensions.
Examples
If the total value of your
investments at retirement is US$300,000, you can choose
to receive a one-time cash payment of up to US$30,000.
The remaining investments will continue to be held in
your name.
If, after taking your one-time payment, you have US$270,000 left, you will receive
payments of US$6,750 every six months (or US$13,500 per year).
If the total value of your investments
is US$270,000 at the start of the second year of retirement
but is US$280,000 at the end of the year (after your benefits
have been paid), you will receive a one-time, lump-sum
cash payment of US$10,000.
Medical disability / Ill health
If you stop working before
your 50th birthday due to ill health (i.e., due to physical
or mental incapacity), you can retire immediately. You must
notify your employer and Saxon Administration, the Plan's
client services agent, to arrange for your retirement.
You will have the same
benefit options that you would if you retired on your normal
retirement date. Other benefit options may – at the discretion
of the Trustees and with the prior approval of the Superintendent
of Pensions – be offered to you depending on your personal circumstances.
When you die
Your pension isn't just
about you. It's also about the financial security of those who
depend on you. With that in mind, Silver Thatch includes some
important provisions to protect your survivors.
Death before retirement
If you have a spouse and die before you start receiving retirement benefits,
your Silver Thatch investments will be re-registered in the name of your spouse.
Your spouse will be entitled to the same benefits that would have been available
to you. However, they will not be able to elect a benefit option or start drawing
a retirement income until they are eligible to retire.
If you do not have a spouse and die before you start receiving retirement benefits,
your Silver Thatch investments can be cashed in by your personal or estate representative.
Death
after retirement
If you die after retirement and have a spouse, he or she will
be entitled to certain benefits. These benefits will depend on
the benefit option you selected at retirement.
If you chose an annuity, that annuity will provide a lifetime benefit to your
spouse after your death.
If you chose a retirement income fund, your Silver Thatch investments will be
re-registered in your spouse's name and your spouse will receive the income
that would have been paid to you.
If you die after retirement and do not
have a spouse and/ or dependent children, the benefits payable
will depend on the option you selected at retirement.
If you chose an annuity,
chances are no further benefits will be payable. There
is one exception. If you elect an annuity that is payable
for a minimum period and you die within that period,
some benefits may still be payable.
If you chose a retirement income fund, your remaining Silver Thatch investments
can be cashed in by your personal or estate representative.
When you leave the Cayman Islands
and establish residence in another jurisdiction
If you stop working in the Cayman
Islands and leave the Islands, you can
transfer the cash value of your Silver Thatch investments
to another pension plan; or
cash in your Silver Thatch investments and receive the proceeds as a one-time,
lump-sum payment.
Keep
in mind that you can cash in your investments only if, in the
preceding two years:
you have not been a resident of the Cayman Islands,
you have not worked in the Cayman Islands, and
no basic contributions have been made
to Silver Thatch on your behalf.
