What happens to contributions of employees when they resign from employment?
Employees can transfer their contribution when they change jobs. Employers’ must inform exiting employees to complete Transfer forms on exit, this will allow for their contributions to be transferred to their new employer’s Scheme for continuity.
Can I make additional contributions beyond the mandatory rates?
A member can make additional contributions under a Tier 3 Provident or Personal Pension Scheme. The Tier 3 Provident Fund Scheme allows members tax-qualified contribution of up to16.5% of the member’s basic salary.
Any addition contribution more than the 16.5% bracket shall be on an after tax basis. The Axis Pension Plan also provides an avenue for members who will want to augment their contributions.
FAQ’s for Members of Occupational Pension Schemes
2.1. How does a member contribute into the 3 Tier Pension Scheme?
Contributions into the mandatory Tier 1 and 2 Schemes are made on behalf of a member by the employer. The necessary deductions are made and paid into the appropriate schemes from payroll. The voluntary Personal Pension contributions can however be paid directly from a member’s bank account via direct debit, Visa/Mastercard or by cash deposit.
How are funds invested?
The scheme has an investment policy which Fund Managers work with. This directs the kinds of investments to be made. The investment policy also has benchmarks for measuring the performance of the Fund Manager.
How do I access my contribution statement?
How do I get Statements for my employees?
The Online access for employers is available on the Axis Client Portal (https://cap.axispension.com/crm/employer )
for designated employer’s representatives to login. The employer login account provides access to employee benefit statements, employee bio-details and other relevant schemes reports.
How do I register my company onto a Scheme?
An employer will need to complete an Axis Participation Form to be enrolled onto the Scheme.
How much will I earn by the end of my contribution?
Tiers 2 and 3 Schemes are defined contribution schemes, this means that members’ contributions are clearly stated however the benefit is the total contributed amount plus any additional gains accrued within the period of contribution.
Because the fund is managed as a mutual fund it is unlikely to provide a promise return on the funds. The investment policy of the fund however provides benchmarks with which the Fund Manager is expected to work with.
What happens to my funds in the event of liquidation of my company?
A member can apply for his funds to be transferred to a new employer’s scheme in the event of liquidation of his former employer. Tier 3 Provident fund benefits may be paid to members upon liquidation of a company.
What happens to my funds when I change jobs?
Members can transfer their Pension fund contributions when they change jobs. Members must complete Transfer forms on exit, this will allow for their contributions to be transferred to their new employer’s Scheme for continuity. Contributors to Provident funds can however apply for their funds to be paid upon exit.
What happens when employees change jobs?
Employees can transfer their Pension fund contributions when they change jobs. Members must complete Transfer forms on exit, this will allow for their contributions to be transferred to their new employer’s Scheme.
Contributors to Provident funds can however apply for their funds to be paid upon exit if they so wish.
What happens when new employees are hired?
The members’ Employer should submit bio data and beneficiary details of new employees to Axis for pension accounts’ to be created and member numbers issued to them. This should be done before contributions are made on behalf of new employees.
When can I access my contributions?
Pension contributions are available to members upon retirement at age 55 or 60 years, in the event of permanent medical incapacitation, permanent emigration by foreigners to their home country, or as death benefit to nominated beneficiaries of a contributor.
Provident Funds are however accessible to a member when he meets the vesting rules of the Fund set by the employer and/or any of the qualifying conditions of the pension scheme.