Sagicor Lifestyle is an Approved Retirement Scheme, wherein your contributions accumulate until retirement.

SAGICOR LIFE JAMAICA LIMITED

Sagicor Life Jamaica Limited is a company incorporated under the Companies Act. The Company is a propriety insurance company transacting ordinary long-term insurance and group business. Its policies are normally sold to the public through salesmen who are employed to the Company but may be sold through Brokers.

WHAT IS SAGICOR LIFESTYLE?

Sagicor Lifestyle is an Approved Retirement Scheme, wherein each participant’s contributions accumulate (subject to the prevailing income tax limits) until retirement. The accumulated funds will be used to provide lifetime income e.g. purchase an annuity which pays a monthly income at the specified retirement age or at the point of permanent disability, if earlier.

WHO IS ELIGIBLE?

In order to qualify for this scheme, you have to be a Jamaican resident at least 18 years of age, self-employed, contract worker or not contributing to any other Approved Superannuation Fund or Retirement Scheme. If you are no longer an active member of an Approved Superannuation Fund or Retirement Scheme you may transfer your accumulated balance to Sagicor Lifestyle.
WHAT ARE THE BENEFITS OF SAVING IN AN APPROVED RETIREMENT SCHEME?
Retirement
Upon attaining the retirement age, (i.e. 50 – 70 years [Normal Retirement is 60 – 65; Early Retirement 50 – 59; Late Retirement is 66 – 70]), as determined by the member, a portion of the accumulated balance can be paid as a cash lump sum (tax free) subject to the maximum limit permitted under the Income Tax Act or any other relevant Act. The remainder of the fund is converted to a stream of income through the purchase of an annuity or similar product.
Disability
In the event that you are deemed permanently disabled prior to retirement, your pension benefit will be paid under the terms set out in the contract/trust deed and rules.
Death
In the event that you die before retirement, a refund of the total amount of contributions to the Scheme, together with interest, is payable to the named beneficiary.

HOW DO YOU PARTICIPATE IN THE SCHEME?

Once you have met the eligibility requirements, you can participate in the Scheme through:
  • Contribution to a maximum of 20% of your annual gross taxable income or emoluments, subject to the prevailing income tax limit.
  • Transfer of balances from existing Approved Retirement Schemes or Superannuation Funds. You (whether directly and /or through your Employer) are required to contribute to the Scheme on a regular basis at least once per year.
In the event that contributions cease on behalf of the member, the following options are available:
  • Accumulated balance remains in the Scheme, accumulating interest until retirement.
  • Accumulated balance is used by the Trustees to purchase a deferred annuity payable at retirement.
  • Accumulated balance is transferred to another Superannuation Fund/Approved Retirement Scheme.
Where an Employer ceases to contribute on behalf of a Member, a new Employer may continue the contributions under the Scheme subject to the prevailing limits imposed by law.

WHAT ARE THE INVESTMENT OPTIONS?

Our three comprehensive investment retirement options will meet the needs of members allowing them the ability to match their risk profile and stage of life with suitable assets.
  • Option 1 – The Retirement Band Approach
  • Option 2 – The Blend and Monitor Approach
  • Option 3 – The Guaranteed Approach
These simple but effective approaches will allow members to save for retirement in a tax efficient manner and create the desired wealth on the journey to successfully achieving their retirement goals.

The Retirement Band Approach

This option is designed based on the philosophy that not all members are sufficiently knowledgeable in the area of investments and as such are not fully equipped to make informed decisions about their investments. This simple all-in-one professionally managed solution, secures individuals with a worthwhile retirement alternative and keeps them appropriately invested throughout the retirement journey, utilizing target retirement year band funds. The funds are tailored to different retirement dates and are managed by Sagicor.

The Blend and Monitor Approach

This option is predicated on the notion that some categories of members have a greater appreciation of the investment environment. To this end, they want to play a greater role in how their funds are invested by determining their own investment mix in line with their retirement goals. These individuals wish to create their asset allocations in line with their balance of risk and reward. This approach allows a more hands on approach to investing for retirement and allows the members the ability to customise their own retirement solutions.

The Guaranteed Approach

This option is centred around the idea of preserving capital for the risk adverse investor, where the perceived complexity of being bogged down with the selecting and monitoring of investments is not desired. Instead Sagicor will invest the funds in a risk free offering. This option is only available to members who are within 5 years of their Normal Retirement age.

SAGICOR POOLED INVESTMENT FUNDS

The Sagicor Pooled Investments Funds are Type 1 Pooled funds, meaning they are investment funds with the sole purpose of investing the assets of Approved Superannuation Funds or Retirement Schemes, established and operated by a licensed investment manager which:
  • Does not hold any investment or security deemed ineligible or prohibited for an Approved Superannuation Fund or Retirement Scheme under the Pensions Act.
  • Is not party to or engaged in a transaction prohibited for an Approved Superannuation Fund or Retirement Scheme under the Pensions Act.

Funds
The specialized pooled funds are a collection of nine (9) funds (or such other funds that may be determined by Sagicor from time to time) as follows:
SAGICOR POOLED PENSION FUND RISK PROFILE INVESTS MAINLY IN
Pooled Equity Fund (PIF EF) High Invests in listed securities on the local and recognised regional exchanges.
Pooled Money Market Fund (PIF MMF) Low Invests mainly in short term instruments such as repurchase agreements, variable rate securities and fixed income securities with an average time to maturity not exceeding two (2) years.
Pooled Fixed Income Fund (PIF FIF) Low- Medium Invests mainly in Government of Jamaica fixed income securities with longer maturities.
Pooled Foreign Currency Fund (PIF FCF) Low- Medium Invests mainly in US$ and Euro dominated fixed income instruments issued by the Government of Jamaica.
Pooled Mortgage and Real Estate Fund (PIF MREF) High Invests in hotels, commercial and warehousing properties, retail complexes and mortgage loans.
Pooled Global Markets Fund (PIFGMF) Low – Medium Invests in short term US$ denominated assets, with an average time to maturity not exceeding two (2) years.
Pooled Consumer Price Index Fund (PIF CPI) Low – Medium Invests in Government of Jamaica CPI bonds, where yields are linked to inflation.
Pooled International Equity Fund (PIF IEF) High Offers exposure to international markets by investing in listed securities traded on recognised exchanges in the US, UK and Canada including exchange traded funds (ETFs), which are securities that track an index and represents a basket of stocks or commodities.
Pooled Diversified Investment Fund (PIF DIF) Medium Employs a ‘fund of fund’ strategy, whereby it is invested in other pooled funds, in a mix determined by Sagicor.

INCOME AND EXPENSES

The income from the investments of the Fund will accrue to and form part of the Fund and all taxes, expenses and outgoings in respect of those investments, including costs of acquiring, managing, valuing and disposing of real estate properties will be deducted from the Fund. Similarly deductions will be made from the Fund of such amounts as Sagicor considers appropriate in respect of any levy imposed under statute or in respect of any unexpected liability relevant to the Fund.

TRANSFER FEE

The Company reserves the right to charge a fee for the transfer of accumulated balances to another Approved Superannuation Fund or Retirement Scheme. This fee is subject to change on ninety (90) days’ notice from Sagicor Life Limited.

MEMBER STATEMENT

Within 120 days of the end of each year you will receive a statement that will show your accrued benefit as at the end of the statement period and a projected benefit at your normal retirement age. This estimate does not represent a benefit guarantee but gives a projection of how much income you can purchase at retirement.

MANAGEMENT FEES

There is a management fee of 2% per annum of the average Net Asset Value payable monthly. Fees are subject to change on ninety (90) days’ notice from Sagicor Life Jamaica Limited.
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