Frequently Asked Questions
Retirement Savings Plans
What is a company Retirement Savings Plan ?
It's a plan we have set up to help you save money for your retirement, when your pay or salary ceases. It will generally provide you with a lump sum on your retirement date.
What will I get back ?
This will depend on a number of factors including:
- how long you remain in the Plan
- how much we contribute
- the charges taken, and
- by how much your investments grow
Remember, what you get back is not guaranteed, the value of your Retirement 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 Retirement Account at any time by logging in to Zurich International online (ZIO).
Why is it important to save for retirement ?
When you retire you will no doubt have dreams and aspirations, but you will no longer be taking a company salary. The Retirement Savings Plan, together with any savings of your own, can help you achieve those aspirations and enjoy a comfortable retirement.
How do I join the Plan ?
Your employer will notify you if you are eligible to join the GEBP. You will automatically become an active member on the first day of the month following the start of your assignment.
If you are a US Citizen, Green Card Holder, US Resident, or have a US tax filing requirement, you must declare this to your employer prior to your enrolment in the GEBP. An alternative pension plan may be offered to you, due to the significant and complex US tax reporting requirements.
When your assignment ends, the company's contributions will stop and you will become a passive member of the plan.
Payments and Investments
What are the contributions to the Plan
Your contribution rate is stated in your contract. Contributions will be calculated based on your base salary plus target incentive.
Where can I find details of the fees or charges involved ?
Details of the fees for managing the Plan are as follows;
Plan administration charge of 0.225% by unit deduction from members account
Administration fee of 60 Euros/60 USD or CHF 102 per year, deducted monthly by unit deduction
There will also be charges applied by the Fund Managers for managing the funds, details can be found in the Fund Centre accessible via Zurich International online.
How do I pay contributions into the Plan ?
There are no member contributions for this Plan, only Employer contributions.
How much of the contributions are invested ?
100% of the contributions are invested in the funds chosen.
Where are my contributions invested ?
You can choose how your retirement account is invested. There are two ways to invest under the GEBP:
- Lifestyle Portfolios - these are pre-set investment strategies that automatically move your funds from higher
growth assets into more stable assets as you approach retirement age. There are three lifestyle portfolios to
and six to choose from in the Swiss section:
- Swiss Passive
- Global Passive
- North American Passive
- Asian Passive
- Emerging Markets Passive
- European Lifestyle (default investment)
- Self Directed - if you wish to take a more active role in selecting your investments, you can follow the self-directed approach and choose from a range of individual funds, which have been selected by the GEBP Governance Committee, based on professional investment advice.
Further information on these investment options can be found in your Fund Centre, accessed via Zurich International Online.
If you do not wish to make a personal investment choice, your funds will be automatically invested in the Balanced Lifestyle Portfolio for ROW members and the European Lifestyle for Swiss members.
- Lifestyle Portfolios - these are pre-set investment strategies that automatically move your funds from higher growth assets into more stable assets as you approach retirement age. There are three lifestyle portfolios to choose from:
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.
The exception to this is if you should become a US resident at a later date, at which point switching and/or redirection cannot be permitted.
Can I transfer the value of other retirement savings plans ?
It may be possible, in limited circumstances, to transfer funds into/out of other Pension Plans or savings accounts, into this Plan, if the owner of the other Plan is prepared to either make or accept the transfer, and local laws permit. However it is it is not possible to transfer your funds to/from a UK registered pension scheme.
Before making a transfer you should seek professional financial and tax advice. The transfer will also be at the discretion of the Trustees, where appropriate.
Please note that a transfer into this Plan could result in your Retirement Account balance becoming taxable and may not always be in your best interest.
Retirement, death, and leaving service
When can I take my benefits ?
You can take your benefits when you reach retirement age. Alternatively, if you leave the Tetra Laval Group before retirement age, you have the option to withdraw your funds from the plan in full.
What are the options available on my Plan retirement age?
You can take the full value of your Retirement Account as a cash lump sum. You may be able to use all or part of this value to buy an annuity from an annuity provider of your choice. You may also have the option to withdraw from your Retirement Account by taking a number of instalments over a period of time. You may also request that the balance of your retirement account be paid annually in equal instalments in the currency of your choice over a period of up to 15 years
What happens if I die before reaching retirement age ?
The Trustee has discretion as to who shall receive the current value of your retirement account if you die while in service with The Company.
However, they will give full consideration to the person(s) whom you have nominated as your primary beneficiary(ies). It is therefore important that you complete the online nomination form on ZIO.
You should also update your beneficiary(ies) as and when your personal circumstances change. In the event that the primary beneficiary(ies) are deceased, then the Trustee will consider distributing your retirement account to the secondary or contingent beneficiary(ies) nominated by you.
Distribution will normally be made as soon as practical following your death and completion of the necessary forms. Distribution will be made no later than two years following your death. If, on expiry of the two year period any portion of the death benefit remains unpaid, the Trustee shall hold the balance in trust for your estate.
What if I move locations with my job ?
The Plan is designed such that, if you move to a different country with your job, your own contributions can continue.
What happens if I leave service ?
You can take the full value of your Retirement Account as a cash lump sum. You may be able to use all or part of this value to buy an annuity from an annuity provider of your choice. You may also have the option to withdraw from your Retirement Account by taking a number of instalments over a period of time. You may also request that the balance of your retirement account be paid annually in equal instalments in the currency of your choice over a period of up to 15 years.
Will there be any tax payable on my Retirement Account ?
Zurich International Life 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 Plan 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 Plan.
If I move locations,what currency will have to be paid in ?
Contributions can change between CHF & EUR, the currency of the contribution is determined by the employer.
Which Company is the Provider of the Plan ?
The Plan is provided by and 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 and the Isle of Man.
Zurich International Life is part of the global Zurich Insurance Group which has over 55,000 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 Plan is secure ?
The Island has established its own Insurance and Retirement Benefits Acts, ensuring that authorised companies havesound and professional management and that the interests of Sponsors and their members are protected. Zurich isauthorised 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.