Your Benefit Options

When you retire, you will have three options for receiving your retirement benefits: an annuity, a retirement income fund (RIF), or a retirement savings arrangement (RSA).

1. Annuity
   If you elect this option, all of your Silver Thatch investments will be cashed in and the money used to buy an annuity. There are different types of annuities available, but in all cases, an annuity guarantees you a fixed income for life.
   
   The amount of your annuity income will depend on a number of factors, such as the amount of money available to purchase the annuity, your age, the type of annuity you buy, and interest rate at the time of your annuity purchase.
   
   If you have a spouse at the time of your retirement, your annuity must (by law) include a joint and survivor benefit. This will ensure that if you die before your spouse, the annuity will continue to pay your spouse a fixed, lifetime benefit.
   
   
2. Retirement Income Fund (RIF)
   If you choose this option, a portion of your Silver Thatch investments will be cashed in at retirement and paid to you. Amounts will also be cashed in and paid to you on a regular basis throughout your retirement.
   
   
3. Retirement Savings Arrangement (RSA)
   The National Pensions Law was implemented in 1997 and the RSA is a vehicle to be used until the system reaches maturity, perhaps 25 years or more after implementation. RSAs are vehicles whereby Plan members who have retired (minimum age 50 years) and wish to access their retirement funds, can do so, without having to purchase an annuity or have Silver Thatch Pensions make annual payments.
   
   The payout schedule acts much like a pension envis­aged by the law, in that it escalates annually, and any balances remaining on death are to be paid to the spouse, children/or estate. A member also has the option to purchase an annuity from a licensed supplier. Additionally, they may collapse the RSA at any time and purchase an annuity.

Here’s how it works:

• At retirement – You can cash in up to 10% of the value of your Silver Thatch investments. Every six months thereafter, 2.5% of the value of the investments remaining will be cashed in, and the proceeds paid to you.
• Starting in the year following your retirement – If the value of your remaining investments is higher at the end of the year versus the beginning of the year (after your benefits have been paid), the difference will be cashed in and the proceeds paid to you. If the value of your remaining investments is lower, no additional payment will be made.
• The RIF option will not be available to you at retirement if the value of your Silver Thatch invest­ments is US$100,000 or less.
• Trustees have the discretion to change the provisions of a retirement income fund to protect the interests of a retired member and to help ensure payments continue for the lifetime of that member. Changes require the consent of the Superintendent of Pensions.