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Group Pensions

Group Pensions

Employers are undoubtedly concerned about the well-being of their employees. They naturally want to provide the kind of pension scheme that will help their employees sustain their living and meet other financial obligations at time of retirement.

Employees also look forward to an adequate benefit package from their employers, which includes along with salaries and other benefits, provision for a retirement income.

SICOM as a major operator of pension business in Mauritius, with more than 35 years of experience, offers a comprehensive range of consulting, administrative, investment and actuarial services to meet specific needs of employers and employees.

About the Group Pension Schemes

Product Details Description
Product Name Group Pension Scheme 
Description 

Generally, a Group Pension Scheme is set up by an employer to provide for retirement and related benefits to its employees.  Other Associations also can do so for their members.

Features 

The scheme may be of the following types:

  • The Defined Benefit Scheme where retirement benefits are based on the length of pensionable service and final salary of the member
  • The Defined Contribution Scheme where retirement benefits are based on the accumulated  contributions of the member
  • The Hybrid Scheme which is a combination of the Defined Benefit and Defined Contribution Schemes

The following options may be considered under the scheme:

  • Death Benefit
  • Disability Benefit
  • Spouse/child/dependent pension
  • Guaranteed pension for a minimum period
  • Joint pension with spouse
At the option of the Employer/Association, the Defined Benefit and the Hybrid Schemes may take into consideration the contributory pension payable under the National Pensions Scheme.
Benefits  Retirement
On retirement the member of the scheme receives at his option, either a monthly Gross Pension or a Lump Sum plus a monthly Reduced Pension.

Withdrawal
When a employee leaves the service of his employer upon completion of at least 2 years’ service, his portable benefit is transferred either to the Pension Scheme of his new employer or to a personal pension policy.  In case the benefit is not transferable, he may get a refund of his own contributions if the scheme is a contributory one.

Death
Depending on options chosen, a gratuity to the heirs and/or a spouse/children pension are payable.

Disability
Depending on options chosen, upon total and permanent disability of an active member, a lump sum and/or monthly pension is/are payable to the member.
Eligibility  to membership of the scheme 

The permanent employee of an employer or the member of an Association as applicable  

Required documents 

Retirement

  • Certification/instruction from the employer
  • Option of member
  • Employee’s Declaration Form if applicable 

Withdrawal

  • Certification/instruction from the employer   
  • Option of member 

Death

  • Certification/instruction from the employer
  • Claimant’s Declaration
  • Death Certificate
  • Certificate of cause of death
  • Affidavit, marriage certificate, birth
  • certificates as applicable 
Disability
  • Certification/instruction from the employer
For more details  Call us on 203 8400 or email us at lifequotation@sicom.intnet.mu  and we shall guide you through the application process

Setting up of the scheme
SICOM’s role consists of the following:

  • Designing of the scheme benefits to suit the need of your employees and your budget
  • Preparation of the rules and the agreement to govern the scheme
  • Handling the legal procedures involved in the setting up of the scheme
  • Dealing with the relevant authorities for the approval of the scheme

Administration of the scheme
Following the agreement between the sponsor (employer or Association) and us and the approval of the scheme by the Authorities, we will open and operate a separate account for the Pension Fund.

Contributions payable monthly by you and your employees are credited to the Fund. Interests/dividends earned from the investment of the funds are credited to the Fund.

SICOM will pay out of the Fund benefits directly to the employees or their beneficiaries as and when they fall due.

A management fee to be mutually agreed between the Employer/Association and SICOM will be charged to the Fund.  At the end of each year or more frequently if you so request, we will submit a financial statement to you, disclosing all income and outgo to the Fund.

Investment of the funds
Pension Fund liabilities are mostly long term and require the application of skillful resources for efficient management of the funds.

Our two fundamental principles are

  • Security of assets
    Through selection of quality investment products and investing in a wide range of assets, we ensure the continuous security and stability of the Fund so as to meet its liabilities as and when they fall due. 
  • Maximising Returns
    Our objective is to achieve, with an acceptable degree of risk, the maximum return on the Funds and reach the optimum balance between risk and return.

Actuarial Investigation
The Fund will be subject to regular actuarial investigations as defined in the Rules of the Scheme.

The main object of this investigation is to determine whether the Fund is solvent and to determine any adjustment in the rate of contribution if necessary.

Advantages
For Employer

  • It enables you to fund for the pensions in advance and spread the cost of pension over a longer period. If you wait till the employees are close to retirement age, the cost involved may be out of your reach and employees would have to forfeit many years of service
  • It enables you to take advantage of tax relief available on the contributions you pay
  • It helps you attract high quality employees and retain your staff
  • It avoids the loss of efforts and money spent on training
  • It promotes better industrial relations and enhance loyalty, morale and stability of employees
  • It promotes a sense of belonging among the employees and makes them feel more responsible towards their job, thereby improving the quality of your staff

For Employees

  • It is an additional fringe benefit for employees
  • It provides security to employees and their families, bringing more job satisfaction. Pension schemes do not provide pensions at retirement as from the age of 60 only. There are also pensions payable on earlier retirement due to ill health and gratuity payable on death in service

Getting  a quotation
To enable us to work out a scheme for you, we require the following data:

  • Employee Code
  • Sex
  • Date of Birth
  • Nature of Duty
  • Date of Commencement of Pensionable Service
  • Present Pensionable Salary
  • Break-in-Service if any

You may also specify the type of scheme you wish to have and its commencement Options as follows also may be specified:

  • whether the benefits would be net of the benefits payable under the National Pension Fund or not
  • the accrual rate
  • whether previous service prior to the commencement date of the scheme should be considered or not
  • whether pensions in payment would be increasing or not

Responsibilities of the Employer/Association
The Employer/Association has to provide SICOM with updated particulars of the employees/members respectively and inform SICOM of any movement or change in their respect as and when they occur.