Defined Contributions Pension Scheme arrangement has the following advantages to its members:

Employees
• More attractive withdrawal benefits.
• Participation in above average investment returns.
• An easily understood means of providing for retirement.
• Possible housing loan facility.

Employer
• Stable future service contribution rates (simplifying the budget process).
• Non exposure to an open-ended liability.

Contributions
Each member will have a Member's Account and an Employer's Account.

Member contributions
A percentage of salary as decided by the Trustees of the scheme and the employer will be paid into the Member's Account.

Employer contributions
A percentage of salary roll as decided by the Trustees of the scheme and the employer will be paid into the Employer's Account to provide for retirement benefits.

Retirement Benefits
Upon reaching the Normal Retirement Age, a member will receive the pension that can be purchased by the value of their two accounts - Member and Employer accounts.

Commutation of pension/ Cash in Lieu of Pension
At the commencement date of his Annuity a Member may elect to commute for a lump sum;
(a) if his Annuity does not exceed the limit set by the relevant legislation from time to time, the whole of Annuity; or
(b) if his Annuity exceeds the amount in (a), not more than one third of his Annuity.

Guaranteed periods
• 0 year guarantee: provides the highest pension that ceases immediately on death of a member.
• 5 year guarantee: provides a higher pension that is guaranteed for a minimum payment period of
five years.
• 10 year guarantee: provides a high pension that is guaranteed for a minimum payment period often years.

Self funded growth pensions
Members have the option of selecting a non-growth pension or growth pension as follows:
• Non-growth pension: the member purchases a pension that remains constant throughout its payment
period.
• Growth pension: the member purchases a pension that will grow by a specific percentage per
annum i.e. 5%, 10%, 15% etc,

Withdrawal
The member will receive the full amount in the Member's Account plus a portion of the Employer's Account, which is dependent on the length of service at the date of withdrawal and the reason for the withdrawal.

Death
A death in-service-benefit of a multiple of the annual salary is provided under the scheme plus a refund of the Member's Share Account.

General
In certain circumstances, employees can receive a housing loan from their Member's Account. Interest is charged to the loan at a rate agreed by the Trustees on the advice of the actuary and NICO Life each year.

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