Introduction to Golden Accumulator Retirement Trust

Some Employers may wish to employ the services of professional trustees for their pension plan. If this is a desired requirement then the Golden Accumulator Retirement Trust is the plan for you.

The Golden Accumulator Retirement Trust provides:

• Professional Trust Services by Butterfield Trust
• Professional Investment Management by Butterfield Asset Management Ltd.
• Professional Pension Administration and Actuarial services by BF&M Life Insurance Company Limited

Background

The Bank of Butterfield offers both individual and corporate clients a full range of banking, trust, investment, global custody and corporate services.

Within the Bank, the management of fixed income and equity portfolios is the responsibility of Butterfield Asset Management Limited (BAM). This wholly owned investment management subsidiary is able to draw on the resources and support of the entire Butterfield Group.

BF&M Life (wholly owned subsidiary of BF&M Limited) is well known in Bermuda as a leader in employee benefits such as health, life and retirement plans. The Bank of Butterfield and BF&M entered into a strategic alliance and designed the Golden Accumulator Retirement Trust which minimises the administrative burden on employers, and which is easy to understand for employees. Together, we can help employers meet the retirement and security needs of their employees.

Investing for you retirement

Each employee planning for retirement will have their own unique needs and their own preferred investment risk profile. Their retirement and investment needs will vary, depending on their age on joining a Pension Plan, and as they progress through their career. Current projections indicate that an individual saving 10% of their earnings over their whole working life would ensure a good future.

The Pension Plan is designed to provide for employees who are in various life stages by offering ten investment profiles. One is a guaranteed return with the contributions invested in a capital guaranteed fixed income portfolio. The others are actively managed profiles that combine this guaranteed fixed income portfolio with increasing amounts of equity and bond mutual funds. International exposure gives progressively higher expected rates of return as the risk increases in a controlled manner.

We believe the combined portfolios of mutual funds with the guaranteed fixed income portfolio provided investment advantages that are unique in Bermuda. We are ideally placed to manage investment options as BAM's investment experts actively monitor each fund to optimise returns.

We offer guidelines to help employees relate their investment risk profile to the options we offer. We provide both group and individual assistance at the time of initial enrolment and then as required for new employees who join the Plan, and as a periodic review of existing members. Anyone coming up for retirement are advised on what is available and best suited for them.

Pension Benefits at Retirement

The pension benefit payable at retirement is based on various factors such as the amount of contributions made to the plan, the growth rate of the investment funds and the cost of purchasing an annuity at retirement. Retirement can be as early as 55 years or can be delayed beyond age 65 years.

Planning for tomorrow's retirement begins today

We would welcome the opportunity to meet with you and talk about your requirements. Once we have all the information we need, you can leave the project entirely in our hands. It really is that simple. For more information, please contact BF&M today.