Golden Accumulator Retirement Plan for Non-Bermudian Employees and Supplementary Savings Plans

Non-Registered Pension Plans

The Pension Act’s definition of employee includes Bermudians and spouses of Bermudians who are employed in Bermuda. The eligibility requirements only pertain to these employees. This does not preclude non-Bermudian employees from enrolling in a registered pension plan, however, their enrolment is completely optional and once enrolled they must adhere to the rules of the plan and the Pension Act.

As an alternative, the employer may elect to set up a non-registered pension plan for their non-Bermudian employees. The employer can then provide more flexibility in the plan wording to allow for these employees to take their funds as a lump-sum payment upon termination of employment. It is important to note that a non-registered plan is not recognized by the Tax Commission as an approved pension plan if it allows for a lump-sum payout of proceeds on termination. Therefore any employer contributions made to a non-registered plan that allows for lump-sum payout must be included as a taxable benefit on the employer’s quarterly payroll tax return.

To set up a non-registered pension plan, the employer must fill out an application, which can be provided by one of our group representatives or agents. There is no need to file anything with the Pension Commission or Tax Commission, therefore the set up turnaround is fairly quick. The administration of the plan is the same as for a registered pension plan. It is just distinguished by the plan code and the policy number.

Supplementary Savings Plans

Some Companies elect to set up a separate savings plan for their employees to supplement the required pension savings as regulated by the Pension Act. These plans are customized to the needs of the employer. Once set up, they operate in the same manner as any other plan, with the employer submitting the contributions on a monthly basis. Some plans include restrictions on withdrawals to ensure the members are actually saving for the future. Some plans include both employee contributions and an employer match. But these plans can be customized however the employer wishes.

The investment options available are the same as those available for the Golden Accumulator Retirement Plan can be found under the Golden Accumulator Fund Fact Sheets.