1. Will my pension be increased when I turn 65?
The Trustees recently adopted an improvement so that if you continue to work after age 65 and your employer makes contributions to the Fund on your behalf, your pension benefit increases by one half percent (½%) for each month that you work over age 65.
2. Will a separation or divorce affect my Pension Fund?
A separation or divorce, in itself, will have no effect on the monthly benefits paid from the Pension Fund. However, your separation or divorce agreement may require that a portion of those amounts be paid to your ex-spouse. If you have a copy of any separation or divorce agreement, you should send that to the Pension Fund office at the time of your application.
3. When I die, who will receive the money I paid into the pension plan on my behalf?
The Pension Fund has several death benefits depending on the option you take at your retirement. You have the option to elect a Joint & Survivor Pension to cover your spouse should you die prior to retirement or after retirement. In this case, your pension is reduced for your lifetime and then your spouse receives 50% of the benefit you were receiving for the remainder of her lifetime after your death. If you die after retirement and have not elected the Joint & Survivor pension, your named beneficiary will receive the remainder of any 60 months of payments on your behalf. For example, if you retire and live for one year and then pass away, your beneficiary will be entitled to the remainder of 48 payments. This 60 month guarantee is also applicable if you die prior to retirement but at a time when you were eligible to receive a pension. For any participant who dies before retirement and whose beneficiary is not entitled to any of these benefits described above, a death benefit of $5,000 will be paid to that person's designated beneficiary.
4. If I have a spouse or children at the time of my death, how would my pension funds be distributed?
Any benefits payable at the time of your death will be distributed to the named beneficiary which you have filed with the Pension Fund office. You should request a pension fund beneficiary designation form and fill that out for the Fund office.
5. In my will, can I leave my pension funds to the person of my choice?
The Pension Fund will only pay death benefits from the Plan to the named beneficiary which you have designated and filed with the Pension Fund.
6. Now that I am retired and on pension, can I go back to work in the hotel industry?
The Management Pension Fund has a provision which states that your pension shall be suspended for any month in which you work in the hotel industry after retirement.
7. How often can I expect to receive information about my pension statement?
Benefit statements are expected to be generated each year by the recordkeeper SG Hambros and mailed to all participants of the Pension Fund.
8. How much time would I need to advise the Pension Fund in advance of my pending retirement?
You should give the Fund office as much time as possible prior to your retirement in order to make sure that all your papers are in order and your calculations are done in a timely manner. We would recommend you contact the Fund office six months prior to your retirement.
9. I am planning to retire, how can I find out how much my monthly pension benefits will be?
Simply write a letter to the Fund office and request an estimate of your monthly pension benefit. One will be calculated and sent to you.
10. Will my beneficiaries continue receiving monies from the Pension Fund after my death?
See the answer to question #3.
11. What happened if I have not accumulated sufficient pension credits at the normal retirement age?
If you achieve normal retirement age, age 65, with at least 10 pension credits based on contributions, you have achieved - vested status - and can retire on a pension. If you have not achieved vested status, you are entitled to a termination/withdrawal benefit based on the contributions made to the Plan on your behalf.
12. How often is the Management Pension Fund booklet revised and benefits improved?
The Management Pension Fund booklet has recently been revised and is being reviewed by the Trustees currently for distribution. The Board of Trustees reviews an Actuarial Valuation of the benefits promised to participants each year and if investments have performed sufficiently to warrant an improvement, benefits are improved. There is no set schedule for preparation of a booklet or for improvement of benefits.
13. Under this fund and in the case of death, would my beneficiaries be given financial assistance with funeral arrangements as is the case with National Insurance ?
Your beneficiaries will be entitled to any death benefits as provided under the Plan.
14. Can a person apply for Disability Pension under this fund in addition to disability under National Insurance?
A person can apply for a disability pension from the Management Pension Fund. There are very detailed requirements which are outlined in the Plan document. A disability pension, if a participant meets all the requirements under the Fund, is payable in addition to any benefits payable for disability under National Insurance.
15. Can I make additional payments separate and apart from my employer's contribution to the Management Pension Fund?
Under the current rules of the Pension Plan, no. However, the Board of Trustees is currently evaluating the possibility of allowing employee contributions to be made the Management Pension Fund. If this decision is made, a separate mailing will be made to communicate this to all participants.
16. Can I change my beneficiaries whenever I want to?
Yes. You can change your beneficiaries at any time by filling out a beneficiary designation form and filing that with the Pension Fund office.
17. What is the purpose of the Management Pension Fund?
The purpose of the Management Pension Fund is to provide monthly pension benefits to participants who work in the hotel industry in a management capacity during their career. A variety of benefits payable in addition to these monthly benefits are outlined in the Plan document.
18. Can all hotel employees join the Management Pension Fund?
Hotel employees covered by a collective bargaining agreement generally participate in the Bahamas Hotel and Allied Industries Pension Fund. Any hotel employees not covered by a collective bargaining agreement can generally join the Management Pension Fund. Any decision of participation must be approved by the Trustees.
19. What is the calculation to access my early retirement under the Management Pension Fund?
An Early Retirement Pension is payable at age 55 if a participant has at least 15 pension credits. The benefit is first calculated as if the participant were 65 years old. That amount is then reduced by one quarter of one percent for each month by which the participant is younger than age 65 and by one half of one percent for each month by which the participant is younger than age 60 when he begins to receive the early retirement pension. A participant who receives an early retirement at age 55 would receive a reduction of 45% as compared to an amount he would have received at age 65.
20. Should I die before my retirement, what would my beneficiaries received?
Please see the answer to question 3.
21. Once vested and unable to get any money from the Management Pension Fund, can I get the interest on it?
Once you are vested in the Management Pension Fund you are entitled to receive a pension at either age 55, if you have at least 15 pension credits, or age 65 if you have 10 pension credits. You cannot receive any payments from the Pension Fund prior to that time.
22. If there are ever catastrophic events, would any special consideration be given to assisting those of us who are vested in the Management Pension Fund?
There are currently no provisions outlined in the Pension Plan that document assistance to participants after a catastrophic event. However, the Board of Trustees administers the Pension Fund and makes decisions on all rules and regulations. Any benefits to be distributed under a catastrophic occurrence would be reviewed by the Board of Trustees.
23. When I retire, can I receive a pensioner's identification so that I can receive senior citizens discounts similar to what happens in the United States of America?
When you retire you can request a letter from the Fund indicating that you are a retiree under the Management Pension Fund. There are currently no pensioner's identification cards produced by the Pension Fund.
24. After being vested, can I have that option to withdraw the amount whatever the percentage, if I decide to leave the industry or retire?
Currently there are no provisions to withdraw any amounts in the Plan once a participant reaches vested status.
25. Before being vested, if I decide to leave the industry, can I get the money contributed on my behalf?
The Management Pension Fund provides a termination/withdrawal benefit if you leave the industry before achieving vested status (generally 10 years of pension credits). The termination/withdrawal benefit is equal to the greater of 50% of the contributions made on their behalf of 50% of the present value of your accrued benefit at the time you left the industry.
26. Is it possible to know how the Management Pension Fund money is being invested and can employees for whom contributions are being made be allowed to invest that money accumulated?
The Management Pension Fund is a defined benefit pension fund which promises specific monthly benefits payable at the time of a participants retirements. Monies are invested in various different securities and are administered by SG Hambros. The Board of Trustees is responsible for investing the assets on behalf of the entire Pension Fund. All investment risk is borne by the Fund. Employees cannot invest any of the money contributed on their behalf. Any questions on seeing a list of the investment should be submitted to the Board of Trustees in writing.
27. Why can't the Management Pension Fund Board provide loans, scholarships etc., for employees for whom contributions were made or their children?
The Management Pension Fund is a defined benefit pension fund which promises a monthly benefit payable at the time of your retirement and payable for the rest of your life. Loans, scholarships and other type benefits are generally provided in defined contributions plans where each individual has a specific account allocated to him on his behalf. The Board of Trustees of this defined benefit pension plan cannot promise benefits such as these.
28. Should I die while receiving pension benefits, would my beneficiaries continue to receive the same or more for the remaining period?
Please see the answer to question 3 regarding the 60 month guarantee. The 60 month guarantee is at the same benefit level that the retiree was receiving.
