The SMART Retirement Plan is an Approved Retirement Scheme sponsored by NCB Insurance Company Limited (NCBIC) exclusively for members who wish to contribute towards retirement income. The Scheme is operated under the guidelines provided by The Pensions (Superannuation Funds and Retirement Schemes) Act 2004.
The SMART Retirement Plan is an Approved Retirement Scheme sponsored by NCB Insurance Company Limited (NCBIC) exclusively for members who wish to contribute towards retirement income.
The Scheme is operated under the guidelines provided by The Pensions (Superannuation Funds and Retirement Schemes) Act 2004.
Three categories of persons are eligible for membership.
Members must be a Jamaican resident between ages 18 and 69 years old.
The maximum contribution allowed is 20% of remuneration or chargeable income (before tax).
Remuneration includes allowances, bonuses or perquisites.
Prior to enrolment, you will be required to sign a declaration indicating that your contribution to the SMART Retirement Plan will not exceed 20% of salary.
Yes. Contributions can be made by a company on behalf of employees. The employers’ contribution however, cannot exceed 10% of the employees’ salary.
The contributions of both employer and employee must not exceed 20% of employees’ salary. The employer does not have to match payments made by the employee.
What is important is that the total contribution does not exceed 20% of each employee’s salary.
Contributions may be made monthly, quarterly, semi annually or annually.
Each member must make at least one contribution per year.
Payments can be made using Salary Deductions, Pre-Authorized Payment, NCB e-Link (internet), NCB IVR (payment via telephone), over-the-counter payments at NCB branches and any other payment methods introduced from time to time.
There are currently two fund established, namely the SMART Balanced Fund and the SMART Fixed Income Fund which are unitized.
The trustees may establish new investment funds from time to time.
Member may choose how their contributions are to be allocated in these funds.
The SMART Balanced fund shall be invested in fixed income securities, equities and real estate and any other assets permitted under the Pensions Regulation.
The SMART Fixed Income Fund shall be invested solely in fixed income securities such as bonds.
As with all similar investments, it is recommended that you increase your savings periodically to keep pace with inflation.
A good rule of thumb is to increase your contributions each year in line with salary increases.
As experienced managers of long-term investment funds and retirement planning solutions, NCBIC will apply sound investment strategies to the management of your funds.
We do not, however, guarantee the rate of return on your retirement funds as they are determined by prevailing market conditions.
On application for membership, you will be advised about the various fund options available, including the investment philosophy and relevant risk profile, to aid you in making the appropriate allocation decision based on your personal risk tolerance.
Fund re-allocation is changing your contribution percentage allocation while Inter Fund Transfer (or switching) is the transferring of a part or whole of your account value from one investment fund to another investment fund. Both Fund Re-allocation and Inter Fund Transfers are allowed without charge subject to the following conditions:
These limits may be changed by the company from time to time.
On application the member will select a retirement age which will be between 60 and 65.
A member is allowed to retire not earlier than 10 years prior to the selected retirement age (early retirement) and no later than 5 years after the selected retirement age.
On retirement your accumulated value will be used to purchase an annuity.
The default or normal form of annuity is Single Life 5 Year Guarantee. The member may elect a different form of annuity such as Single Life Annuity with 10 or 15 years guarantee period or Joint and Survivor Annuity.
A member may also elect to convert a portion of his annuity and receive a single tax free lump sum payment and a reduced pension/annuity.
The maximum lump sum payment shall not exceed the greater of:
a. 25% of the member’s accumulated value or b. 3.125 times the annual annuity
This is a series of retirement payments derived from your accumulated value as at retirement date.
These payments may be fixed or variable depending on the option selected and are payable for life.
The accumulated value is payable as a lump sum to the named beneficiary upon receipt of evidence of death of the member.
The beneficiary should be 18 years or older but if the beneficiary is a minor a trustee should be appointed to act on the child’s behalf.
A member will be treated as permanently incapacitated if the Trustees have considered suitable medical evidence and are satisfied that the member is incapable, due to permanent mental or physical incapacity of carrying on his/her occupation or any occupation of a similar nature for which he/she is trained or fitted.
The member shall produce such medical evidence from a licensed physician acceptable to the Sponsor.
A member may terminate his/her membership by giving at least 10 days notice to the Sponsor (NCBIC).
The Sponsor may also terminate a member
Two (2) options are available:
a. The accumulated value under the SMART Retirement Plan may be transferred to an approved superannuation fund or another approved retirement scheme
b. The accumulated value can also be retained in the fund until the member reaches the retirement age or dies.