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Frequently Asked
Questions
1. I
have a pension plan through my employer and BF&M Insurance Group. How do I
know what to invest my funds into?
BF&M Insurance Group has devised an investment strategy quiz to help you understand
the intricacies of the market and calculate your tolerance of risk. Click on the
link to go the quiz.
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2. What
do you mean by investment profiles?
BF&M Insurance Group has selected funds that are diversified and are placed
into investment profiles that give an appropriate level of comfort to the novice
or experienced investor. For a graphic look at the five investment profiles please
click on charts.
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3. What
is the investment philosophy of BF&M Insurance Group?
A detailed explanation of our philosophy and history of the funds is available
by clicking on the hyperlink.
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4. How
can I withdraw my investment if I terminate my employment?
This depends on whether your funds are vested or not. If they are not vested please
allow for a minimum of 3-4 weeks to receive your check, assuming your contributions
are up to date and the termination notice has been received form your employer.
This time line allows us to process your termination, value the funds, sell them
on the market, and process your refund. If you are vested you have the option
of re-investing them with a BF&M individual plan or transferring the funds
to your new employer. A detailed listing of the rules may be viewed by clicking
on rules.
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5. When
do I have to join the pension plan?
The minimum age for joining is age 23, the maximum is age 64. The minimum service
required to join a pension plan is 720 hours of employment. If your employer's
pension plan has a shorter service requirement, such as 3 months you will join
the plan on the earlier date.
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6. How
much will I have to pay into the pension plan?
The minimum contribution for 2002 is 3% each from the employee and the employer.
In 2003 it rises to 4% each and in 2004 it will reach the maximum of 5% each.
You may make voluntary contributions as well, however, these are not matched by
your employer.
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7. I
need some cash now, why can I not withdraw the cash from the plan?
The pension plan is not a short-term savings plan. The program has been designed
not to allow withdrawals of employee or employer contributions after January 2000,
subject to vesting rules. Voluntary contributions may be taken at any time but
are usually subject to a fee for processing.
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8. I
am not Bermudian and am returning to my native land. My funds are vested. What
can I do?
You have two choices. You may leave the pension moneys in an individual plan in
Bermuda or subject to the employer's rules you may also take the vested employer's
portion. However in doing so the employer's portion is classed as remuneration
and is subject to payroll tax.
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9. How
can I get expert advice?
BF&M Insurance Group has several staff members who hold various financial
planning and investment certifications. You may feel at ease dealing with our
professional staff.
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10.
How often do I receive statements?
We send out statements twice per year. The first period is form January to June
30, and the second from July to December 31st. The statements typically arrive
within six weeks of the end of the reporting period.
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11.
Can I see my pension plan on the web?
You may gain access to your pension account at any time by visiting our website
at www.bfm.bm.
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12.
How will my contributions be invested?
BF&M's pension plans provide a variety of investment profiles designed for
investors with various degrees of risk tolerance. Our investment strategy quiz
will help you determine where you fall on the risk tolerance scale. Click on the
link to go the quiz.
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13.
How often can I change my investment profile and what is the fee?
You can change your investment profile at any time by completing the Investment
Option form. There is no fee for making this change.
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14.
When will the Employer contributions belong to me?
The Employer contributions belong to you or become "vested" after you
have satisfied two years membership in the plan after 1st January, 2000. Once
you become vested both employer and employee contributions will be "locked
in" to provide a pension at retirement.
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15.
What happens with my pension account when I terminate employment?
- If you are vested when
you terminate employment your account balance will be transferred to your new
employer's pension plan, or, to an Individual Pension Plan with BF&M.
- If you are vested but your
account balance is less than 5% of the average employment income (AEI) you may
receive a cash refund.
- If you are not vested you
will receive a cash refund of your contributions plus any earnings.
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16.
What happens to my pension account if I die?
Your beneficiary will receive a cash refund of your contributions plus earnings
as well as any vested employer contributions plus earnings.
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17.
What do I have to do to change my beneficiary?
You must complete the necessary forms and forward them to BF&M for registration.
You may change your beneficiary at any time. You can access the change beneficiary
form here.
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18.
What should I do when I am approaching retirement?
You should review your investments to start moving toward a conservative profile
as you get closer to retirement. Make an appointment to visit your representative
at BF&M to review your options and complete the necessary forms.
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19.
How do I know what type of pension plan I have?
The types of pension plans are as follows:
SP or Seg Plan - This
is a Segregated Pension Plan.
TP or GART Plan - This is a Trustee Pension Plan.
OP or Osprey Plan - This is an Osprey Pension Plan.
EF of Emerald Plan - This is an Emerald Financial Plan
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