Frequently Asked Questions (FAQs)

1. 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.
OR/ON - NAAM - This is a North Atlantic Asset Management Plan
NR or Non-Registered - This is a non-registered pension plan.

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2. 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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3. 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. Depending on the plan that you are enrolled in your investment options will vary. For more information, go to Pension Services Provided by BF&M.

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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 you are entitled to the employee contributions together with any investment gains earned to the date of termination. If you are vested you have the option of re-investing your locked in pension funds into a prescribed retirement product 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. How long should it take to receive my pension refund or withdrawal of voluntary funds?
This depends on the plan that you are invested in. For the Golden Accumulator Retirement Trust, the funds are traded on a weekly basis, therefore it takes longer to process your termination. These terminations / withdrawals can take up to 6 weeks depending on whether your final contributions have been received or not. For the Golden Accumulator Retirement Plan, since the funds are traded daily, the turnaround is much faster. Assuming all of your contributions have been received, the process can be completed within 10 business days.

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6. 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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7. How much will I have to pay into the pension plan?
Effective 2004, the minimum contribution is 5% each from the employee and the employer. You may make voluntary contributions as well, however, these are not matched by your employer.

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8. 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 if any may be taken at any time.

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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. Please call BF&M at 295-5566 and ask to speak with one of the financial planners on 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. If you do not have a username and password, please call BF&M pension department at 295-5566 and one of the administrators will be happy to assist you.

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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. Depending on the plan that your employer has chosen, your investment options will vary. Please refer to Pension Plans and Services provided by BF&M Life for more details.

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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 the vesting period for your plan. The normal vesting period is two years of membership in the plan, however it may be less depending on the specific rules of your plan. 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 a Prescribed Retirement Product.
• 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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