Bechtel International Staff Retirement Plan
Frequently Asked Questions
Retirement Savings Plans
What is Bechtel International Staff Retirement Plan
The BISRP is designed to help you save for your retirement. It has been set up especially for full-time and reduced scheduled salaried employees, who are on an International Assignment and who are not eligible to participate in another employer sponsored retirement plan. It will generally provide you with a lump sum on your retirement date or when you leave employment
What will I get back?
This will depend on a number of factors including:
• when you/Bechtel start making contributions
• how long you remain in the BISRP
• how much you/Bechtel contribute
• the charges taken, and
• by how much your investments grow
Remember, what you get back is not guaranteed, the value of your BISRP account can go down as well as up, depending on how your investments perform.
You can use the ‘Retirement Savings Calculator’ tool to give you an idea of what you might receive when you retire. If you are already a plan member then you can view the current value of your BISRP account at any time by logging in to Zurich International online (ZIO).
To log into ZIO click here.
When should I start saving for retirement?
“As soon as you can” is the simple answer.
By making contributions as soon as you are able to, you are giving yourself a better chance of building up a big enough lump sum to give you the lifestyle you want in retirement.
How do I join the BISRP?
Participation in the plan is voluntary. You have the option to join the BISRP when you commence employment and anytime thereafter if you remain eligible. Note: if you decide not to join you will be missing out on contributions Bechtel will make as part of your overall benefits package.
Payments and Investments
How much should I contribute to the BISRP?
Generally speaking, as much as you can afford. You may contribute from 1% up to 85% of your base earnings. Bechtel will match your contributions up to a maximum of 6%.
Where can I find details of the fees or charges involved?
Details of the fees for managing the BISRP can be found in the Plan Handbook and Investment Guide.
How do I pay contributions into the BISRP?
Contributions will be deducted on an after-tax basis through your payroll each pay period, and paid to Zurich who will invest the contributions into your BISRP account, together with Bechtel’s contributions.
How much of the contributions are invested?
100% of the contributions are invested in the funds chosen.
Where are my contributions invested?
The BISRP Committee has selected a range of pension funds from which you can choose where to invest your contributions.
Alternatively, you may have the option of investing in a Lifestyle Investment Strategy which automatically moves your contributions and any growth from higher risk to lower risk funds as you move towards your retirement age.
BISRP Investment Guide provides more information on investments.
The BISRP Handbook and Investment Guide provide full details of the plan and the fund choices available and are located on the BecWeb for you to review. Once you have joined the plan, you will be given access to the Plan Fund Centre on the ZIO welcome page where you will be able to see how your investments are performing.
Can I make changes to my investment choices?
Yes, you can change your investment choices through Zurich International online once your account is live and you have been given access to the site. The full investment options available to you can be found through the Plan Fund Centre.
What compensation is match and discretionary trust
Match is based on your annual base earnings, for whatever part of the year you participated in the plan. If the company does make an annual discretionary trust contribution, it will be based on your annual base earnings, plus bonuses, for whatever part of the year you participated in the plan. This discretionary contribution, if made, will be only to those BISRP participants actively employed with Bechtel at the time of allocation. Annual base earnings are subject to certain maximum limits.
Retirement, death, and leaving service
When can I take my benefits?
Generally, when you retire or leave Bechtel. Further details may be found in the BISRP Handbook.
What are the options available on my Plan retirement age?
Please refer to the BISRP handbook
What happens if I die before leaving Bechtel?
100% of the value of your BISRP account will be distributed to your beneficiaries. It is therefore important that you nominate beneficiaries online via ZIO (a guide on how to do so can also be found on the library section of ZIO) as this will ensure that Zurich or your Trustees know who your chosen beneficiaries are and can therefore make payments more quickly.
What if I move locations with my job?
The BISRP is designed such that, if you move to a different country on international assignment with Bechtel, and you are not eligible to participate in another employer sponsored retirement plan, both your own and Bechtel contributions can continue. The exception to this is if you become eligible for an alternative home or host country plan, or become a resident in the US, at which point your participation in the BISRP is suspended. However, you will continue to have access to manage the fund investment of your BISRP account.
What happens if I leave service?
Please refer to the BISRP handbook
Any tax payable on the proceeds of my account
Zurich is incorporated in the Isle of Man and does not pay tax in the Isle of Man on capital gains and income attributable to Planholder investments. This means that your investment can grow from year to year virtually tax free, taking advantage of an effect known as 'gross roll-up'. There may however be an element of withholding tax deducted from some income and dividends within certain funds that cannot be reclaimed.
The tax treatment of any contributions into and any benefits taken from the BISRP will depend on your own personal circumstances. It is always advisable to consult your relevant financial professional if you are in any doubt as to the extent to which you may be liable to any tax under the BISRP.
If I move locations, what currency will have to be paid in?
Contributions will always be paid into your BISRP account in USD, regardless of whether or not this is the currency of the country in which you are based.
Which Company is the Plan Administrator?
The BISRP is administered by Zurich International Life (Zurich). Zurich is a major financial institution offering life assurance, investment and protection solutions throughout the world with licensed offices in the United Arab Emirates, Hong Kong, Bahrain, Qatar, Singapore, and the Isle of Man.
Zurich International Life is part of the global Zurich Insurance Group which has over 60,000 employees serving customers in more than 170 countries throughout the world, offering both general and life insurance products.
How can I be sure that the BISRP is secure?
The Island has established its own Insurance and Retirement Benefits Acts, ensuring that authorised companies have sound and professional management and that the interests of Sponsors and their members are protected. Zurich is authorised in accordance with the Insurance Act 2008 to conduct long term insurance business from the Isle of Man under the supervision of the Isle of Man Financial Services Authority (IOMFSA). The Insurance Act obliges senior management and controlling parties of insurance businesses to be fit and proper, and that the companies are financially sound.
The legislation is clear and comprehensive and the reporting requirements it contains satisfy the IOMFSA's strict supervisory needs.