Group Pension Schemes

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.

Here's what you can expect

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.

(Terms and conditions apply)

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This product is offered by
State Insurance Company Of Mauritius Ltd (BRN: C07007065)

Useful info

  • About the Schemes

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.

 

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.

  • 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 of the Scheme

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.

  • 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

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

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