The Silver Thatch Pensions Plan is a two-part Defined Contribution (DC) retirement savings program that includes:

  • mandatory contributions as prescribed by law
  • a flexible savings arrangement for Additional Voluntary Contributions (AVCs)

Under the mandatory aspect of the pension plan, employees and their employer make contributions based on the employees’ earnings. These are referred to as basic contributions. Basic contributions are automatically invested in one or two of three available investment portfolios – conservative, balanced and growth – based on the employee’s personal profile (i.e., age, income range and marital status). Funds are shifted automatically if there is a significant change in an employee’s personal profile. At retirement, the money accumulated in an employee’s pension account – including investment earnings – is used to provide a retirement income.

Employees also have the option to make Additional Voluntary  Contributions – or AVCs. The employer can make AVCs on the employee’s behalf. AVCs are simply contributions that are over and above the required contributions made to the DC pension  plan. The employer and employee each control what – if any – AVCs they make. The employee decides where the AVCs are invested and can choose from five professionally managed investment portfolios.