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The Net Asset Value (NAV) of the Chamber Pension Plan funds as of 30 June 2022 is as follows: Related articles: https://www.chamberpension.ky/post/market-update-from-mercer

You may be aware of the current financial market volatility due to global macroeconomic conditions and are wondering how the Chamber Pension Plan is performing. Members should be reminded that the equity portfolio is passively managed and tracks the MSCI World Index. So, in the current environment, negative returns should not be a surprise, but over the prior ten years, the MSCI World Index has had an annualized return of 10.10%. For Pensions, members should focus on the long-term. The Chamber Pension Plan has one of the lowest expense ratios of all private pension plans. If you have questions about the performance of your Lifecycle Funds, visit chamberpension.ky, email admin@pensions.ky or call 745-7630. The Cayman Islands Chamber of Commerce Pension Plan – we’re here for you.

The gender wage gap has remained remarkably stubborn for decades and, inevitably, becomes a significant shortfall at retirement. In 2020, women made 83 cents for every dollar earned by men, according to the U.S. Census Bureau. The gap persists despite women’s increasing levels of education and even widens among higher-income workers. By the end of her career, the Centre for American Progress found that a full-time working woman will have lost out on $417,400 of income. “Women live longer than men, so they’re going to need a bigger retirement fund, and women make less money, so it’s more difficult for them to save,” said Leigh Singleton, the director of financial education at banking app Monifi. Here are a few top tips to close the retirement savings gap once and for all. Read the full article from CNBC here

Today, Cabinet decided to extend the pensions holiday until the 30th of September 2022. Cabinet’s decision to extend the temporary break in the legal requirement for contributions to employees’ pension plans, aims to reduce the impact of the current global inflationary crisis on local businesses and individuals. The Ministry will be issuing the associated press release which will be posted on its website and updating our communication to convey this information to the general public. “While it has been helpful to individuals and businesses to suspend the pension requirement during the past two years, we are now at a point in time where it is in the best interest of employees, to resume the funding of their pensions. It is the responsible approach to adopt given the improving economic environment and the Government is providing advance notice of this to allow employees and businesses to prepare for the resumption of these payments starting July 1st, 2022,” said Premier Hon. Wayne Panton. The pension holiday, in place since April 2020 as a COVID-19 relief measure, exempted employers, employees, and self-employed individuals from making mandatory contributions to pension plans. The rationale behind the pension holiday was that companies would have had more cash available to cover expenses such as payroll and health insurance contributions while employees would have more funds available to assist with their individual living expenses during the pandemic. Deputy Premier and Minister for Labour Hon. Chris Saunders said, “The pandemic created challenges for both employees and employers as well as those currently seeking employment. With the relaxation of some travel restrictions, the resumption of commercial airline flights and the upcoming reintroduction of cruise tourism, the decision to extend the pension holiday for another three months was made to allow additional time for businesses to grow to full strength as the country reopens.” As with the previous pension holiday periods, Government Owned Companies and Statutory Authorities are excluded from the Order, and therefore must continue to make pension contributions to their respective plans. The Department of Labour & Pensions reminds the public that voluntary pension contributions can be paid into pension funds. Either the employee or the employer may opt to pay voluntary pension contributions, however, the other party is not required to contribute as well. Contact dlp@gov.ky for further information.

The Net Asset Value (NAV) of the Chamber Pension Plan funds as of 31 May 2022 are as follows: Related articles: https://www.chamberpension.ky/post/market-update-from-mercer

The Net Asset Value (NAV) of the Chamber Pension Plan funds as of 30 April 2022 are as follows: Related articles: https://www.chamberpension.ky/post/market-update-from-mercer

The Net Asset Value (NAV) of the Chamber Pension Plan funds as of 31 March 2022 are as follows:

The Net Asset Value (NAV) of the Chamber Pension Plan funds as of 28 February 2022 are as follows:

By way of Cabinet Order, in accordance with section 13 of the National Pensions (Amendment) Act 2020, the national pension holiday has received a final extension through 30 June 2022. “While it has been helpful to individuals and businesses to suspend the pension requirement during the past two years, we are now at a point in time where it is in the best interest of employees, to resume the funding of their pensions. It is the responsible approach to adopt given the improving economic environment and the Government is providing advance notice of this to allow employees and businesses to prepare for the resumption of these payments starting July 1st, 2022,” said Premier Hon. Wayne Panton. The pension holiday, in place since April 2020 as a COVID-19 relief measure, exempted employers, employees, and self-employed individuals from making mandatory contributions to pension plans. The rationale behind the pension holiday was that companies would have had more cash available to cover expenses such as payroll and health insurance contributions while employees would have more funds available to assist with their individual living expenses during the pandemic. Deputy Premier and Minister for Labour Hon. Chris Saunders said, “The pandemic created challenges for both employees and employers as well as those currently seeking employment. With the relaxation of some travel restrictions, the resumption of commercial airline flights and the upcoming reintroduction of cruise tourism, the decision to extend the pension holiday for another three months was made to allow additional time for businesses to grow to full strength as the country reopens.” As with the previous pension holiday periods, Government Owned Companies and Statutory Authorities are excluded from the Order, and therefore must continue to make pension contributions to their respective plans. The Department of Labour & Pensions reminds the public that voluntary pension contributions can be paid into pension funds. Either the employee or the employer may opt to pay voluntary pension contributions, however, the other party is not required to contribute as well. Contact dlp@gov.ky for further information.

If you have any queries, we're here to help! Please contact our Plan Management Team Unit 4-107 Governor's Square. West Bay Road. P.O. Box 1000. Grand Cayman KY1-1102 ​ Saskia Stevenson: 345-743-9125 Randall Fisher: 345-743-9130 Email: pensions@chamberpension.ky

The Net Asset Value (NAV) of the Chamber Pension Plan funds as at 31 January 2022 are as follows: How do we determine the value of your account? At each month end we take the number of units you have for your account and multiply by the NAV to determine the total value of your account. For example, if you have 1,000 units and the NAV is 1.74 at the end of the month, then your account is worth 1,740 at that month end. View our guide on how to read your statements.

Chamber Pension Plan Announces New Administrator’s Agent Check out our press release. Is the Chamber Pension Plan merging with Silver Thatch Pension Plan? The Chamber Pension Plan continues to be a separate and distinct private pension plan. The only difference is that now Saxon Administration Ltd is providing administrative services to two pension plans. All data and member information is kept separate and there is no co-mingling of member data between the two plans. What has changed? There will be several changes because of the decision of the Board of Trustees to change Administrators’ Agent from MUFG Fund Services (Cayman) Ltd. to Saxon Administration Ltd. Some changes will be the location of the office and member portal online access. Why was the change made and how do I benefit from this change? The change was made by the Board after doing an RFP for the provision of administrative services. The current administrator has been providing the service for decades and it was decided to change and felt that the new administrator will provide more benefits to the membership by way of IT and system enhancements such as the build and maintenance of a new Employer and Member Portal. It was also felt that with these new enhancements there would be better customer service provided to our membership in that they would be able to update personal data through the portal rather than completing forms or coming in person. What will stay the same? It is expected that the phone number, email address, website, bank account and social media channels will stay the same. In addition, some of the existing staff of MUFG will be moving over to Saxon. This will provide the membership with continuity of service with respect to the administration of the Chamber Pension Plan. I am a retiree receiving my RSA payments, how will this affect me? The new administrator will have all the necessary information to continue to make the regularly scheduled RSA payment to you. There is nothing that you will need to do. Can I still use the existing forms for submitting my request? All forms are still acceptable. Please visit our website www.chamberpension.ky for any updated forms. As an employer are there any changes to my payment submissions? If you are currently making payments at our Strathvale House location, that will change to our new location. Details for that will be provided on our website and through social media. How much is this change costing the membership? The Chamber Pension Plan has determined that changing of Administrator’s Agent to Saxon Administration Ltd. will result in the overall costs to the Plan being slightly lower for the first three years of the contract with Saxon. Additional Questions? Please submit any additional questions to pensions@chamberpension.ky

Check out some of the most popular resources on our newly relaunched website.

The Net Asset Value (NAV) of the Chamber Pension Plan funds as at 31 December 2021 are as follows: How do we determine the value of your account? At each month end we take the number of units you have for your account and multiply by the NAV to determine the total value of your account. For example, if you have 1,000 units and the NAV is 1.74 at the end of the month, then your account is worth 1,740 at that month end. View our guide on how to read your statements.

The Net Asset Value (NAV) of the Chamber Pension Plan funds as at 30 November 2021 are as follows: How do we determine the value of your account? At each month end we take the number of units you have for your account and multiply by the NAV to determine the total value of your account. For example, if you have 1,000 units and the NAV is 1.74 at the end of the month, then your account is worth 1,740 at that month end. View our guide on how to read your statements.

Members of the Cayman Islands Chamber of Commerce Pension Plan received good news about the Plan’s performance when they met at their Annual General Meeting on 1 December. In addition to updates on the Plan’s performance and activities, members learned that Saxon Administration Ltd., in conjunction with Intertrust Group, will provide the administrative services to the plan effective 1 March 2022. Those presenting at the meeting included Chamber Pension Chairperson Giosino Colaiacovo, Mercer Investment Consulting LLC partner Amy Labanowski, Daniel Agnello and PricewaterhouseCoopers auditor Trevor Dunbar. After undergoing a Request for Proposal process for prospective administrator’s agent, the Plan’s Board of Trustees decided to make a change from MUFG Fund Services (Cayman) Ltd., which has provided administrative services for over a decade, including monthly valuation services since 2018. Plan Chairperson Colaiacovo said The Plan engaged LifeWorks (formally Morneau Shepell) to run a market assessment to confirm viable alternatives to provide administrative services, and that two finalists were identified. “The Board interviewed both finalists and after careful consideration, it determined that Saxon Administration Ltd., in conjunction with Intertrust Group, was the most suitable choice for the Plan,” he said. “This decision in no way is a reflection on the quality or value of the services provided by MUFG Fund Services, but rather made with regard to the future vision and strategies of the Plan. The Board thanked MUFG Fund Services for its many years of service.” Chairperson Colaiacova said goals for the new provider include IT, system enhancements, staffing succession and resiliency, and customer service agility. Saxon Administration Chief Executive Officer Scott Wallace said “I am delighted and proud that Saxon Administration has been chosen as the new administrative agent for the Chamber Pension Plan. Our passionate and talented pension experts look forward to delivering best in class administrative solutions and building new personalized relationships with the members and trustees of CPP.” 2021 Plan Performance Members heard that for the year ended 30 June 2021, the Chamber Pension Plans’ various funds provided investment returns between 8.56% and 36.86%, with an expense ratio of only 0.80%. This low rate of expenses allows Plan members to maximise the amount of their pension at retirement. The Chamber Pension Plan is a not-for-profit entity that does not charge monthly account maintenance fees or fees to join or leave the Plan. The only expenses are related to the management and administration of the Plan and performance percentages are reported after the deduction of Plan expenses. “It is our aim to provide the best-performing, most trusted pension plan for employees and businesses in the Cayman Islands in an efficient and cost-effective manner,” said Chairperson Colaiacovo. New Website Another announcement made during the AGM was about the new website launched for the Chamber Pension Plan as part of an initiative to enhance customer service. Among other elements, the new website features a real-time chat service that will provide faster service and answers to questions. For more information about the Cayman Islands Chamber of Commerce Pension Plan or what is coming in 2022, visit chamberpension.ky or its Facebook, LinkedIn or Instagram sites, email admin@pensions.ky or call 745-7630. -ENDS - Background The Cayman Islands Chamber of Commerce Pension Plan was established 12 May1992. The Plan is a non-profit pension plan, committed to providing independent governance, transparent operations, and competitive, conservative risk- adjusted returns.

As the Cayman Islands Government continues its COVID-19 recovery plan, a Cabinet Order, in accordance with section 1( 3 ) of the National Pensions (Amendment) Act 2020, has extended the national pension holiday for an additional three months through 31 March 2022. Deputy Premier and Minister for Labour Hon. Chris Saunders said, “This Government is of the view that the continued suspension of pension contributions is essential to the recovery process and will continue to provide businesses and workers with the financial relief needed as we continue through the phased implementation of our economic recovery plan”. With the pension holiday extension, employers and employees will not be required to pay mandatory pension contributions into pension plans. As with the previous pension holidays, Government Owned Companies and Statutory Authorities are excluded from the Order, and therefore must continue to make respective pension contributions. The Department of Labour & Pensions reminds the public that voluntary pension contributions can be paid into pension funds in such cases. Either the employee or the employer may opt to pay voluntary pension contributions however, the other party is not required to contribute as well.

The Net Asset Value (NAV) of the Chamber Pension Plan funds as at 31 October 2021 are as follows: How do we determine the value of your account? At each month end we take the number of units you have for your account and multiply by the NAV to determine the total value of your account. For example, if you have 1,000 units and the NAV is 1.74 at the end of the month, then your account is worth 1,740 at that month end. View our guide on how to read your statements.

The Board of Trustees of the Chamber Pension Plan invites our Members to attend the Annual General Meeting ("AGM") on 1 December 2021 at 6:30PM at the Chamber of Commerce Board Room, Governors Square: RSVP or Proxy Submission for AGM Click here to RSVP or submit an electronic proxy form. If you are unable to attend the meeting please appoint a proxy to attend and vote on your behalf by using the RSVP button above. Select "I will not be attending" and fill in the details of your appointed proxy. You must submit the online form no later than 6:30 pm on Monday, 29 November 2021. A valid passport or driver's license is required with submission. Purpose of the AGM ​The AGM is a formal Members only meeting held once a year. The purpose of this meeting is for Members to be informed of the Plan's performance, meet the Board of Trustees, approve the previous year's minutes and to participate in the question and answer segment. Report of Trustees ​The Board of Trustees is proud to provide the members with an overview of the Plan for the fiscal year ended 30 June 2021 and to preview the Plan’s AGM in the 2021 Report of Trustees. Questions? Please contact us at admin@pensions.ky or 745-7630.

The Net Asset Value (NAV) of the Chamber Pension Plan funds as at 30 September 2021 are as follows:

We all want financial security for ourselves and our families. After all, it is associated with higher levels of happiness and lower levels of stress – just some of the keys to a healthier life. However, achieving financial security requires good financial planning throughout life. For some of us, this comes more naturally than for others. However, it is never too late to start organizing your finances. Few people look back on life and regret not spending more money but one of the most common financial regrets reported all over the world is not saving more money and not saving sooner. Incomings vs. Outgoings The first stage in achieving good financial planning is to know your current finances. How much money do you have coming into the household every month and what you are spending that money on? Group outgoings into essentials and non-essentials. Essentials include your rent or mortgage payment, loans such as a car repayment, school fees, utility bills and a reasonable food shopping budget. Non-essentials include a social budget, gym memberships, TV subscriptions and all the other things that you enjoy but you don’t need to survive. Once you take your essentials away from your monthly income, you can work out what is the maximum amount that you can save each month. Multiply this figure by twelve. This is what you could save in a year. Consider how you would feel if you managed to save that figure? Considering this, what from your non-essentials list you really can live without? Savings You’ve worked out what you intend to save each month. Stick to it! Open a savings account so that your savings are separate from the money in your checking account. Why? First, a savings account usually offers a higher interest rate so your money will grow more quickly than in a regular account. Second, consider that money gone – it is not for spending, so it is best to put it somewhere safe and forget about it. If it is in your regular account, you may be tempted to spend it. Saving for retirement is extremely important to avoid any hardship in later years. It is worth setting aside some of your savings to top up your pension pot in addition to the monthly contributions that come straight out of your salary. You can set up an additional monthly payment, known as an Additional Voluntary Contribution. Try to top up with as much as you can afford. Investments Once you have mastered saving your money, then you may wish to consider whether investment is for you. Investments can be risky, hence the greater reward. But with risk comes potential for reward and loss. That said, some investments are riskier than others. An investment like the purchase of a property in a jurisdiction such as Cayman is a relatively safe investment in the current climate. With a growing population and high demand for housing, purchasing a property could be one way to see your money grow. There are other types of investments, but these are both riskier and require knowledge and experience. It is not advisable to invest in a product such as stocks unless you know what you are doing. A money manager may be able to advise and assist you. Set your little ones up for life We at the Chamber Pension Plan have always believed that young people should be taught the skills associated with sound money management. If you have children, you can engender financial planning, even at a very young age. Encourage your child to buy a piggy bank so they can save their pocket money each week or month. You can also provide incentives for them to save their money. Offering to double their pocket money if they save it can teach them about the rewards associated with saving. If you found this interesting, please like us on Facebook so you never miss an update.

Over the years, employees’ desires and demands have evolved. If you are an employer or an HR manager, you are more than likely bombarded with a wide range of tips for keeping different generations of workers happy – a quick Google search on “company benefits ideas” brings up over one billion results. However, when it comes to attracting and retaining top talent, what do employees really want from your company? Employees place importance on their pension Your employees place more value on their pension than you realise. According to The People’s Pension, employees are less concerned about gym memberships and ‘office yoga’, and more concerned about pension benefits. In fact, nearly 70% of employees consider employer pension contributions among the most valued employee benefit. With this in mind, here are some tips on how you can use pension benefits as a tool to create a happy workforce. Offer a pension scheme that is paid on gross salary The National Pensions Act only requires employers to make contributions of 5% on their employee’s first CI$87,000 of income. This is known as “maximum pensionable earnings”. For highly skilled workers earning above this bracket, paying 5% of their gross salary (as opposed to just their maximum pensionable earnings) will amount to thousands of extra dollars in their pension fund each year. Go a little further – put an extra 2% into your employees’ pension In the Cayman Islands, paying 5% into your staff’s pension is mandatory. This does pose a potential for workers to view their employer’s bare minimum payments as more of an entitlement rather than a competitive benefit. If your company has exceeded its financial goals at the end of the year, consider thanking your staff by paying an additional 2% to their pension contribution. Offer a choice of pension providers People like having options. Psychology explains that choices allow us to feel empowered and in control. By letting your staff decide their pension provider, not only are you allowing them to feel empowered, but you are also avoiding the HR headache of switching plans should they be with a different provider. If your company is not a Chamber Pension member, why not add us as an option? Chamber Pension has competitive returns, with top international investment managers maximising our members’ funds. There are never any hidden or additional admin fees, and we provide all of our employers and HR managers with helpful tips and guides to make your life easier. Provide staff with financial wellness and literacy programmes The Bank of America reports that employees expect their employer to support their financial wellness, including bringing in financial experts to provide additional training on fiscal matters. Give your staff access to the information they need through regular communication and education. Our series Teaching your team financial literacy is an excellent tool to improve employee morale and retention. Chamber Pension also provides company visits, covering any pension topic your staff would like to learn more about. Book your free seminar with one of our experts by contacting us today.

We all want financial security for ourselves and our families. After all, it is associated with higher levels of happiness and lower levels of stress – just some of the keys to a healthier life. However, achieving financial security requires good financial planning throughout life. For some of us, this comes more naturally than for others. However, it is never too late to start organizing your finances. Few people look back on life and regret not spending more money but one of the most common financial regrets reported all over the world is not saving more money and not saving sooner. Incomings vs. Outgoings The first stage in achieving good financial planning is to know your current finances. How much money do you have coming into the household every month and what you are spending that money on? Group outgoings into essentials and non-essentials. Essentials include your rent or mortgage payment, loans such as a car repayment, school fees, utility bills and a reasonable food shopping budget. Non-essentials include a social budget, gym memberships, TV subscriptions and all the other things that you enjoy but you don’t need to survive. Once you take your essentials away from your monthly income, you can work out what is the maximum amount that you can save each month. Multiply this figure by twelve. This is what you could save in a year. Consider how you would feel if you managed to save that figure? Considering this, what from your non-essentials list you really can live without? Savings You’ve worked out what you intend to save each month. Stick to it! Open a savings account so that your savings are separate from the money in your checking account. Why? First, a savings account usually offers a higher interest rate so your money will grow more quickly than in a regular account. Second, consider that money gone – it is not for spending, so it is best to put it somewhere safe and forget about it. If it is in your regular account, you may be tempted to spend it. Saving for retirement is extremely important to avoid any hardship in later years. It is worth setting aside some of your savings to top up your pension pot in addition to the monthly contributions that come straight out of your salary. You can set up an additional monthly payment, known as an Additional Voluntary Contribution. Try to top up with as much as you can afford. Investments Once you have mastered saving your money, then you may wish to consider whether investment is for you. Investments can be risky, hence the greater reward. But with risk comes potential for reward and loss. That said, some investments are riskier than others. An investment like the purchase of a property in a jurisdiction such as Cayman is a relatively safe investment in the current climate. With a growing population and high demand for housing, purchasing a property could be one way to see your money grow. There are other types of investments, but these are both riskier and require knowledge and experience. It is not advisable to invest in a product such as stocks unless you know what you are doing. A money manager may be able to advise and assist you. Set your little ones up for life We at the Chamber Pension Plan have always believed that young people should be taught the skills associated with sound money management. If you have children, you can engender financial planning, even at a very young age. Encourage your child to buy a piggy bank so they can save their pocket money each week or month. You can also provide incentives for them to save their money. Offering to double their pocket money if they save it can teach them about the rewards associated with saving. If you found this interesting, please like us on Facebook so you never miss an update.

How do you feel about the idea of retirement? Some people long for it their whole careers, putting all of their lifelong dreams on hold until they retire. Others dread the idea, wondering what they will do when the structure of their lives, of which work is a big part, is gone. There are a number of determining factors in how people will look at this major life change, including financial situations, family circumstances, the level of love or passion they have for the work they do, and their physical capacity. Regardless of whether you think retirement is your ultimate desired state, or if you are heading towards it with a little trepidation, you do need to prepare for a massive change in your life – logistically and emotionally. Humans are wired to find meaning and purpose in life, so what does that look like after we give up our careers? For many of us, our careers have defined us. We meet someone new and the first question we ask is “what do you do?”. How do we start to answer that question after we are no longer the businessman, the lawyer, the teacher, or the doctor? The Chamber Pension Plan has qualified experts to help walk you through the steps you need to take in order to withdraw your funds and can talk to you about whether financially you have enough to retire. But the emotional and psychological side of retirement is quite different. The Chamber Pension Plan reached out to Janette Goodman to provide some insight on this. Janette is a certified life coach based in the Cayman Islands who specialises in helping people facing major life transitions, of which retirement is one. CPP: How does retirement emotionally affect a person? JG: Our professions, or work, provides each of us with much more than an income; it provides us with a rich sense of self, a community identity, a sense of purpose, social relationships, activity, and a routine to our day. Retirement will impact every facet of your life, not to mention impacting the lives of your family and your loved ones. CPP: What are some tips you can share with our members on how to adjust to retirement? JG: When we are considering retirement, we should consider how we would build a new rhythm to our days that will continue to support our identity with this dramatic lifestyle change. Simply looking forward to spending your time on your hobbies or family will leave big voids in your day, but also in your identity. Establishing relationships that will be sustained outside of the work environment, before retirement, is key. It is through these relationships or friendships that you build your sense of community. What drives many of us to get out of bed each morning is work, so discovering a new sense of purpose will be critical to overall mental wellbeing. When we retire we need to remember that many of our friends, family and other relationships do not – they continue with their professional lives – so finding enough interests to make it a rich life is important. CPP: How can coaching help our members in their transition to retirement? JG: Working with a coach before retirement will help people prepare for what they want to incorporate in this new phase; ensuring that they have a place that supports them by raising their awareness of what is important to keep and what is important to release. Retirement is a time to redefine personal purpose and rhythm, and a professional coach will help to position people for their best life by helping them explore their retirement, and to help to create that new rhythm by teasing out passions, fears, desires, and a plan by which they can hold themselves accountable. When I work with my clients, I am there to support them at each turn without judgement, and to help them build positive momentum in the direction they want to move. I know when something is working because it feels like we are moving forward, even when we have minor stumbles. Okay, so I am prepared to deal with my emotions around retirement, what about the logistics? When can I start receiving my benefits? According to the National Pensions Act, the ‘normal age of pension entitlement’ is 65, with an early retirement option at 55. This does not mean you are required to retire at this age or that there are restrictions about when you retire, but this is the age that you are eligible to access your pension benefits. However, if you were born in 1969 or earlier, through the Normal Age of Pension Entitlement Option Order, 2016, you may choose to retain the age of 60 as your normal age of pension entitlement, or early retirement at age 50. You may also choose to access benefits and continue to work, provided current contributions are remitted until you reach the age of 65. If you are retiring early, you will begin receiving your pension benefits on the first day of the month following your chosen retirement date. If you are not retiring early, the payments will be made on the first day of the month following your 65th birthday (or your 60th birthday if you were born in 1969 or earlier). How do I receive the benefit payments? Here you have some choices to make: 1. Transfer your savings to a life annuity A life annuity is typically offered by a life insurance company. It takes your retirement savings and invests them, providing you with a regular income stream for the remainder of your life. Annuity rates will differ depending on your age, total assets, or the term of the guarantee. The amount you will be paid depends on the size of your retirement savings – of course, the larger your savings, the larger your retirement income. Life annuities must be approved by the Director of Labour and Pensions to ensure they comply with the National Pensions Act. 2. Enter a Retirement Savings Arrangement A Retirement Savings Arrangement (RSA) is a payment arrangement of your entire retirement savings by your pension provider. It is structured to pay out your pension by a set amount per year until your account is depleted. If your retirement savings are less than CI$200,000, this is your best option. It is more cost-efficient than a life annuity since there are no fees to pay. A Retirement Savings Arrangement must be approved by the Director of Labour and Pensions. The Chamber Pension Plan is an approved RSA. What does your retirement look like? As you can see, there are many facets to retirement that you may not have considered. It is more than just the ‘gold watch send-off’ from your boss and teammates. You need to think about what will provide you with meaning and purpose, how you will fund your lifestyle and what kinds of vehicles you will need to put your retirement savings into to make for easy payments. At the Chamber Pension Plan, we are here to help you. If you have questions on the logistics side, take a stroll through our website. We are also happy to talk to you if you have other questions – call us at 345 745 7630 or email admin@pensions.ky.

The Net Asset Value (NAV) of the Chamber Pension Plan funds as at 31 July 2021 are as follows: How do we determine the value of your account? At each month end we take the number of units you have for your account and multiply by the NAV to determine the total value of your account. For example, if you have 1,000 units and the NAV is 1.74 at the end of the month, then your account is worth 1,740 at that month end. View our guide on how to read your statements. The Department of Labour and Pensions further advises that voluntary pension contributions can be paid into pension funds if such payments are agreed between the employer and employee. For further information email us at admin@pensions.ky or call 745-7630.

Ensuring that you have enough money saved in your pension and other savings accounts to live comfortably when you retire is not a straightforward formula because the calculation involves a certain degree of variables. However, with careful consideration and a prudent savings strategy, you can plan accordingly to help you to reach your savings goals by the time you retire. The key is to start saving early. Calculate your expenses Financial experts suggest that a retiree will need anywhere between 70 and 85 percent of their final salary upon retirement to fund their living expenses once they retire. The first step in trying to pinpoint this figure is to ascertain what your annual expenses will be once you retire. Some questions to ask yourself: Will you still have a mortgage that needs to be paid? Do you intend to retire quietly at home or do you envision travelling round the world? Will you need to help take care of the expenses of an elderly parent? Do you have high healthcare costs such as health insurance that will need to be maintained (or even increased) during retirement? These are all important factors that play a significant part in determining your overall expenses. Once you have taken a good look at what you will need to pay for during retirement, you can assess if your current savings levels will meet your expense requirements. How big is the pot? Many factors will impact the amount that you will have saved at retirement, all of which you need to take into consideration when assessing if you will have enough money to meet your needs. For example, the earlier you started saving via your pension plan, the more you will have in retirement. The longer you delay starting to save, the harder it will be for you to reach your retirement goals. Luckily, contributing to your pension account is mandatory in the Cayman Islands, but there are other ways to add to your account with AVCs (Additional Voluntary Contributions). Your retirement age is another factor to take into consideration: the longer you remain in employment the less you will need upon retirement and the more you will be able to contribute to your pension plan. How much you can afford to save each month and what type of returns you are earning on your pension and other savings are also important factors to think about. It’s smart to invest with a pension such as the Chamber Pension Plan which offers tailor-made solutions for its members called Lifecycle Funds that reflect your changing needs throughout your working life by automatically adjusting the combination of assets they invest in based on your age, which in turn can reflect your evolving investment needs and goals. It is also prudent to save at the highest levels possible. At the end of the day it is not easy to quote a single number that will determine how much money you need, because everybody’s situation is different. If you can take a good assessment of your financial needs before retirement, ensure you undertake careful planning and prudent saving, then you can better plan to help reach your savings goal.

At the most basic level, an expense ratio affects how much money you get back after all costs to run the pension plan are calculated and deducted. The operational costs of a fund vary depending on its size, investment category and investment strategy and usually include costs related to administration, compliance, management, record-keeping, transaction fees, etc. However, the size of the fund does not necessarily have the effect on its expense ratio that you might expect: a fund with a small amount of assets might have a higher expense ratio because it has a smaller pool of assets to meet its expenses. International funds will also usually have a higher expense ratio because they invest in countries all over the world and therefore have higher operational costs associated with this diversity. How is the expense ratio calculated? The expense ratio is represented as a percentage and is determined by dividing the total fund costs by the average total fund assets. It is calculated annually and reported in the financial statements for the plan. Chamber Pension Plan’s most recent audited expense ratio can also be found on our quarterly Fund Fact Sheets. Why it Matters It’s important to pay attention to the expense ratio charged because it directly affects the value of your investment by reducing your total return. A higher expense ratio usually means a lower return for your investment. For example, if a fund returned 5% for the year and the expense ratio of that fund was 1%, your actual return would be 4%. Other Considerations It’s important to note that comparing the expense ratio of one fund against another is not always an ‘apples to apples’ comparison. While one fund may have a higher expense ratio, it could be a better performing fund or have other factors that could still lead to a higher return on your investment over the fund with a lower expense ratio. Be sure to check out our blog Understanding your Pension Investments to learn more about how pension providers such as Chamber Pension Plan leverage the expertise of established investment advisers so you don’t have to worry about mastering a variety of investment strategies on your own. Chamber Pension Plan’s Expense Ratio The Chamber Pension Plan has an all-in expense ratio of 0.75% for the financial year ended 30 June 2022. This means lowered expenses and increased returns, so you can have more money in your pension at retirement. The Chamber Pension Plan is a not-for-profit entity that does not charge monthly account maintenance fees or fees to join or leave the Plan. There are no hidden fees, and the performance of the Plan is reported after all fees. The only expenses are related to the management and administration of the Plan

Most of us look forward to our retirement, imagining that we'll get to relax more, stress less, and tick off each and every one of our bucket list dreams. Retirement should be a welcome reward for your long years of hard work, but unless you prepare now and avoid these five biggest pitfalls, you may be in for an unpleasant surprise. 1. Not planning for the unexpected If there is one thing you can be sure of in life, it is that the unexpected can, and will happen. Unexpected costs during retirement, however, can be particularly devastating because your income is tighter. Always stay one step ahead and consider these common unforeseen expenses: Car and home repairs/maintenance: Everyone has a car accident from time to time or an unexpected maintenance issue that comes up. Don’t forget that your home and appliances also age with you, so be prepared for sudden repairs or purchases. Medical costs: These are the most troublesome for retirees, as medical challenges can occur more frequently at an older age, and not everything is covered by health insurance. Divorce: Splitting up at retirement age is rare, but it does happen, and it can throw a huge, costly wrench into your retirement. “Boomerang” kids: This term describes an increasing trend with younger generations having to move back in with their parents after college or even later in life. 2. Thinking 10 per cent will get you through retirement Is ten per cent of your income realistically enough to retire on? The truth is that you will need a substantial nest egg after 65, and ten per cent is probably not enough. According to Wharton University’s professor of insurance/risk management and business economics, millennials, in particular, should aim to set aside nearly half of their income for the future. Of course, everyone’s retirement lifestyle looks different. You can create your own ballpark annual estimate based on what you live on now and what might change when you retire. Once you have an idea of your total retirement spending, use our pension calculator to calculate the gap and determine your savings needs. 3. Not having a savings plan Saving money is a concept that most people believe in, yet so few manage to practice. With the cost of living on the rise, you may feel there is nothing left to put aside at the end of each month. Don’t give up. As with everything in life, the key to saving money is to take small steps and work on building a new habit. Focus on what you can save, rather than what you “should” be. Even putting aside as little as $10 a week now will grow to $400 by Christmas. As Frank Byrd, chief investment officer at Fielder Capital puts it: “Pay yourself first. I don’t care how broke you are…I don’t care how much debt you’re in.” 4. Spending too much now, and not saving enough for later Saving for retirement is about priorities and alternatives. Do you take that five-star vacation now, or do you choose a staycation and put the money saved towards your retirement fund? Is a brand-new car necessary now, or can you lengthen the life of your old car with a few low-cost repairs? Building savings on unnecessary purchases now can mean the difference between a basic pension fund and a comfortable one. Thinking on a smaller scale, consider the daily morning coffee you buy. $5 per day times 20 days per month for 50 years is $60,000 that could be saved for your retirement. And that’s just coffee – imagine all the other places where your current consumption could be redirected to savings. As the saying goes, little by little, a little becomes a lot. 5. Saying you have plenty of time This is the most alluring retirement lie you can tell yourself. If you’re in your 20s, 30s, or 40s, then yes, retirement is a ways off. Even at age 55, it is still a decade away. However, time has a habit of moving along faster than you think. The longer you put off saving for retirement, the more difficult it will be for you to save. Consider the tips above, and start saving towards a happy and comfortable retirement. There’s no time like the present – talk to us today about how you can start putting more towards your pension fund.

In the event of your death, your pension will go to your spouse, your dependent children, or your named beneficiaries. How and when your loved ones receive your pension will vary depending on the following scenarios: Scenario 1: You died after you began receiving your pension payments, and you have a spouse In this scenario, the entirety of your pension will be paid to your spouse. Scenario 2: You died after you began receiving your pension payments, and you have a spouse and dependent children In this scenario, your spouse will receive half of your pension. The other half must be held for the care and education of your children until they reach the age of 23 or cease their full-time education (whichever is earlier). Scenario 3: You died before you began receiving your pension payments If you die before your pension payments begin, your spouse is entitled to your pension immediately or deferred, if they wish. The value of this should be at least equal to the amount of the value of the deferred pension. Scenario 4: You died, and you do not have a spouse, but you have dependent children All of your money will be held for your children’s care and education until they reach the age of 23 or cease full-time education (whichever comes first). After this, your remaining pension will be paid in equal lump sums to each child. Scenario 5: You died, and you do not have a spouse, and you do not have dependent children In this scenario, your money will be paid in a lump sum(s) to your named beneficiaries or estate. Pensions may be tricky to understand sometimes, but you have a right to understand what happens to your money. Chamber Pension’s workplace FAQ sessions are an excellent chance for employers and employees to ask any questions relating to their pension. Book your free FAQ session today at admin@pensions.ky.

As pension plan providers, we always encourage people to think about starting their plans for retirement as soon as possible because the sooner you start saving, the larger your retirement fund will likely be at the end of the day. Everyone who is employed in the Cayman Islands must contribute to a registered pension plan, along with their employer, but everyone is encouraged to put just a little bit more away to ensure that there is sufficient money to cover all your needs when you retire. The best way to establish how much extra you can put into your pension plan is to carefully assess your monthly expenditure. Building savings on unnecessary regular purchases might eventually mean the difference between an adequate pension that covers the basics and one that allows you far more flexibility in your retirement years. Buying a morning coffee or dining out for lunch or dinner a couple of times during the working week may not seem like a great financial outlay, but over time these expenses will add up. Instead, why not think about making coffee at home or pack a lunch each day and you will be amazed at how quickly your savings can grow. Do you get your car professionally cleaned on a regular basis? Why not think about washing it yourself and saving that CI$25-40 each month? Even putting spare change into a glass jar adds up pretty quickly over time. Once you have managed to make regular savings in your monthly budget, you need to ensure that the extra money is added to your pension plan. This can be done by way of making an Additional Voluntary Contribution (AVC). AVCs are a great way to boost your pension funds and offer members incredible flexibility and control over how much they want to save. You can save with AVCs and also decide in which Chamber Pension Plan Lifecycle fund you want to invest. For even more flexibility, you can choose to save through your employer by payroll deduction (as per your regular monthly pension contribution) or set up a Chamber AVC account and send in your contributions as you are able. It’s a straightforward process to save with AVCs. You simply complete an enrollment form and make your payment to the Chamber Pension Plan. Making small savings now might not seem like a big deal and shouldn’t disrupt your life to any great degree, but those small savings will add up over time. When you eventually retire, you can be comfortable to know that you have a robust pot of funds on which to live, you will be thankful you made those small sacrifices!

Your pension is for your retirement, but there may be times when you need to partially or fully withdraw it. Perhaps you are leaving Cayman and wish to move your pension with you, or maybe an expensive medical emergency has come up. Certain conditions under the National Pensions Act do make early access and pension withdrawals possible. 1. If the value of your pension is less than CI$5,000, then you may apply to withdraw your pension, subject to certain conditions 2. Where a member reaches age 65 and wants to but is unable to transfer their pension benefit to an approved pension plan, retirement savings account or similar arrangement, or life annuity 3. You have Additional Voluntary Contributions Additional Voluntary Contributions are extra payments to your pension. If you have AVCs, you may be granted early access to them, so long as you are using them under these four categories: Medical purposes Temporary unemployment Housing purposes Educational purposes Further conditions apply under the National Pensions Act, and the Department of Labour and Pensions provides guidance on this. You are permitted to access your AVCs up to 4 times each year. There is no requirement for you to repay this. What if I am already retired? If you have reached your retirement eligibility age, you may begin the process of accessing your pension benefits through a Retirement Savings Arrangement (RSA) or life annuity. For more information on this, check out our blog What to expect when you retire.

As announced by the Hon. Deputy Premier on June 16, Cabinet by way of an Order, in accordance with section 1(3) of the National Pensions (Amendment) Act 2020, has extended the national pension holiday until 31 December 2021. The Department of Labour and Pensions reminds the public that during the extension period employers and employees will not be required to pay mandatory pension contributions into pension plans. As with the previous pension holidays, Government Owned Companies and Statutory Authorities are excluded from the Order. The Department of Labour and Pensions further advises that voluntary pension contributions can be paid into pension funds if such payments are agreed between the employer and employee. For further information email us at admin@pensions.ky or call 745-7630. Related Resources

Under the National Pensions Act, every employer in the Cayman Islands shall provide a pension plan for every person employed by him/her. The main exception to this is employees who are non-Caymanian or non-Permanent Residents that are employed as a “household domestic” (e.g. maid or gardener) in a private residence. Those in self-employment, those working part-time, casual workers, probationary staff and people on short-term contracts must all have a pension provider. If you have more than one employer, then each employer must pay into the employee’s pension plan. Employers of work permit holders must also pay into a pension scheme commencing only after the employee has worked in the Cayman Islands for a total of nine months. It is worth noting that Caymanians who are aged under 23 and who are in full-time education are excluded from the definition of an employee. Under the law, employees and employers must contribute a total of 10% of the employees’ earnings into a pension plan. No matter whether you are paid weekly or monthly, you and your employer must pay this amount into the pension plan. If you are self-employed then you must contribute the equivalent of 10% of your earnings into your pension scheme. How to know which pension provider your employer is using? If you signed a contract at the start of your employment, ordinarily, the terms of your contract will include the pension provider of your employer. If you did not sign a contract, then you should speak to your employer at the earliest opportunity to ensure that your employer is a member of a pension plan and that they are paying theirs and your contribution into that plan. How do I know if my employer is paying into my pension? The Chamber Pension Plan allows you to create an online profile which gives you access to the online portal where you can view your statements online. In addition, you will be sent a semi-annual statement detailing the balance of your pension and the payments made by you and your employer into your plan. You will be able to see on your statement whether your employer is fulfilling its obligations under the law. If you start a new job and your employer does not ask about your previous pension membership, then you should speak to them to ensure that they have a plan and that they enrol you as a new member. If you feel unable to do so, speak to a colleague or alternatively, you can contact the Department of Labour and Pensions (DLP) which may be able to investigate. The DLP may be able to investigate the following non-compliance: employer fails to provide a workplace pension missing contributions into a pension scheme employer unwillingness to pay contributions contributions persistently paid late fraudulent or dishonest behaviour with pension contributions malpractice, dishonesty or fraud in the administration of a workplace pension. You can find out more about the Chamber Pension Plan by following us on Facebook.

It can be difficult to save money in an economic environment like the Cayman Islands. The cost of living and unexpected expenses can leave us with very little to spare at the end of the month. However, with some good budgeting and a little discipline, it is possible to have money left over at the end of every month. Even cutting down on take-out coffees and bringing a packed lunch more often can translate into real savings when added up over the months. You can get more advice on saving money in our blog post Short term savings give long term benefits. Now you have started budgeting and are seeing the fruits of your discipline, it is worth considering how to make the most of it. Leaving it in your bank account to accrue interest might seem like the easiest option but with interest rates so low the return on your savings will take a very long time to add up. If this rings true to you, you need to seek an alternate solution to see your money grow. A far better idea is to put your money somewhere that will see it grow at a quicker rate, no matter how small the investment you may have available. However, for most of us the world of investments, stock and shares can seem a little daunting. Unless you are a trained investment analyst, buying stocks and shares can be a risky business and you may not have enough saved to cover the cost and fees. Therefore, it is sensible to utilise the expertise of investment analysts and advisors who make a living out of choosing stocks and shares, specifically the investment analysts who work on behalf of the Cayman Chamber Pension Plan. If you have some extra money available why not purchase additional voluntary contributions (AVCs) for your Chamber Pension Plan and let the experts decide which way the markets are moving. You can read more about AVCs in our blog post Why AVCs are a good idea. Making AVCs is a straightforward process. You can make AVCs simply by completing this application form and making a payment. This amount will then act as a top up to your regular pension contributions, and while you may only have a small amount of extra money over each month, if you make those extra contributions on a regular basis they will quickly add up. The internationally recognised investment managers who manage the Plan’s portfolio will then use money invested in your pension plan (i.e. your regular monthly contributions and those of your employer plus any AVCs) to invest into one of six LifeCycle Funds. Decisions are tailored to your investment needs, based on your age and estimated time until retirement. You can stipulate in which LifeCycle Fund you would like your AVCs invested and it does not need to be the same LifeCycle Fund as your required contributions. This means that all the money in your pension is working in tandem to ensure the best possible investment return for you. Follow us on Facebook for more great tips on how to save your money and get the most from your monthly salary.

A pension is a method of saving for your retirement. It is your money that is overseen by a Pension Plan Provider that helps your money grow into sufficient funds that will hopefully see you with enough money to live on once you retire. People who are a member of a pension plan that is registered in the Cayman Islands that was set up by their employer should understand that the pension belongs to them, no matter why or when they leave their job. This applies to the pension contributions made by the employee (a minimum of 5 per cent of their monthly wage) and also the mandatory minimum 5 per cent contributed by the employer. If you leave your job or even decide to leave the island, but are not retiring, there are options as to what they can do with your pension. If you’re no longer working for the employer that set up your pension but you intend to continue to live and work in the Cayman Islands, you may be able to leave your pension where it is and carry on paying into your pension plan after you leave, or you can decide to transfer it to a new scheme or get a refund on your contributions (if under CI$5K). If you meet the age requirements, you can even start collecting your pension. Transferring out of a pension plan Deciding to transfer out of your plan to another authorized pension plan on island means you will have to complete the necessary documentation. In this documentation you will have to certify that you understand that you are entitled to benefits under the plan in relation to your employment with your employer and that you understand you can leave your benefit in the plan where it will continue to accrue based on market conditions until you retire. Alternatively you can transfer the value of your funds to another approved pension plan. Leaving the Island If you decide to leave the Cayman Islands and want to apply for a refund of your pension contributions accrued while in employment here, you should be aware that refunds are only allowed if the commuted value of the pension is under CI$5,000 and the member’s employment is terminated.

As you may be aware, the National Pensions (Amendment) Act 2016 passed in the Legislative Assembly and has now been published in the Gazette. Specific aspects of this Amendment as indicated by the National Pensions (Amendment) Act, 2016 (Commencement) Order 2016 are in force. Please refer to dlp.gov.ky for further information. Please note the National Pensions Act (2012) remains in effect and employers, employees, as well as pension plan administrators and members are expected to comply with those requirements in addition to those sections of the National Pension (Amendment) Act 2016 that are in force. Every employee in the Cayman Islands must have a pension provided by their employer It is worth noting that Caymanians who are aged under 23 and who are in full time education are excluded from the definition of an employee. The self-employed, those working part-time, casual workers, probationary staff and people on short-term contracts are included If someone has more than one employer then each employer must pay into the employee’s pension plan Expatriates who have been in continuous employment for more than nine months must have a pension plan The only people excluded are employees who are non-Caymanian or non-Permanent Residency that are employed as a “household domestic” (e.g. maid or gardener) in a private residence. Employees and employers must contribute a total of 10% of the employees’ earnings to a pension plan You can also visit dlp.gov.ky and download the file below for more information about pension laws in the Cayman Islands.

Your Contributions If you are employed in the Cayman Islands, both you and your employer must contribute towards your pension. The contributions that both of you make are related to your total earnings. Total earnings include salary, wages, leave pay, fees, commission or gratuity, as well as bonus payments that are more than 20% of your basic pay. Earnings do not include severance payments, retirement long service recognition payments, and health insurance premiums that are paid by the employer. Anyone earning more than CI$87,000 is not required to make pension contributions on the amount of earnings above CI$87,000 in a calendar year, although they may choose to do so voluntarily. Employers are only obligated to make contributions on the first CI$87,000 of income. Every self-employed person must contribute a sum equivalent to 10% of their earnings up to CI$87,000 at a minimum. Employers are required by law to contribute an amount that is no less than 5% of your earnings. As an employee, you should not be required without your consent to pay more than 5% of your earnings. The employee’s contributions must be deducted at regular intervals, and together with the employer’s contribution, paid directly into the pension fund. Contributions must be made within 15 days of the last day of the month in which the contributions were due. Late contributions will be subject to interest. Eligibility By law, every employer in the Cayman Islands has to provide a pension plan for its workers. Those that don’t are committing an offence and can be heavily fined. This means that anyone working between the ages of 18 and 65 must be a member of a recognised pension plan, even if they are self-employed, working part-time, are casual workers, probationary staff or on short-term contracts, in fact, anyone working must have a pension plan. If someone has more than one employer, then each employer must pay into the employee’s pension plan. Expatriates are allowed an initial nine months (grace period) before legally having to begin paying pensions. If you leave the island between employers for more than six months, then your 9-month grace period starts over. The only people excluded are employees who are non-Caymanian or non-Permanent Residents who are employed as a "household domestic" (e.g. maid or a gardener) in a private residence. You can also visit www.dlp.gov.ky for more information about pensions in the Cayman Islands and download a copy of the National Pensions Act. Basic Contributions The money that each of you deposit into your pension is called your basic or mandatory contribution. When you are a member of the Chamber Pension Plan, the contribution automatically gets deposited into an account in your name, and then it’s invested into one of our Chamber Lifecycle Funds (read more about Lifecycle Funds). Which Fund your money gets deposited into depends on your age on the date you join the Plan. Your contributions will continue to be placed into this account until you retire, or elect to transfer your assets, if you are eligible. How your money is invested changes over time, with the type of investments reflecting how long you have until you reach the normal retirement age, according to the National Pensions Act. Lifecycle funds take the guesswork out of investing, because they automatically adjust the allocation of assets they invest to reflect your evolving investment needs and goals.

If you want to take less risk than the asset allocation suggested for your target year, you could allocate your Additional Voluntary Contributions (AVCs) to a more conservative lifecycle fund. You also have the option to invest your AVCs in a more aggressive portfolio if you are willing to take more risk. With AVCs, you contribute as much – or as little – as you like. There’s no maximum and no minimum. Plus, you can save a different amount each month if you want, based on what you can afford. You decide how to invest your AVCs. Choose from one of our Lifecycle Funds, all run by world-class investment managers. Save through your employer by payroll deduction, or set up a Chamber AVC account and send in your contributions as you’re able. To begin making contributions towards your AVCs, please download and fill the AVC application form below and submit by email to admin@pensions.ky. You can make a one-time election to have your basic or mandatory contribution allocated to a more conservative Lifecycle Fund. The National Pensions (Amendment) Act, 2016 was published in the Gazette in June 2016, however these legislative changes to the National Pensions Act did not come into effect until the date listed in the Commencement Order. In accordance with the National Pensions (Amendment) Act, 2016 (Commencement) Order, 2016, section 47 (10), which permits access to additional voluntary contributions ("AVC"), came into effect on the 31st March, 2017. Section 47 (10) allows pension plan members to access their AVC, prior to reaching the normal age of pension entitlement, under four categories: medical purposes, temporary unemployment, housing purposes and educational purposes. If the member has AVCs that they have not accessed prior, the AVC can be paid as a lump sum when the member reaches the normal age of pension entitlement. See Guidance Note for more information below: How to apply The member should apply directly to their pension plan administrator and there is no need for the application to be submitted to the Department of Labour & Pensions unless the administrator needs to clarify if the request is permissible. Repayment There is no requirement for a pension plan member to repay the AVCs that are withdrawn for any of the four categories. Frequency of access A member is permitted access to their AVC up to 4x per calendar year, for the four categories permissible in the National Pension (Amendment) Law 2016. Monthly reporting by administrators The pension plan administrator will be required to file a report with the Department of Labour and Pensions by the 10th of each month.

You can check your Chamber Pension Plan statement online at any time: just enter your user name and password on the Membership Log-In page. If you do not have a user name and password, contact the Administrator. Alternatively, you can review your semi-annual statement, which you will receive by mail. It is important to review your personal information such as name, address, birthdate, beneficiaries and the employer you work for. Please note only your current employer name should be visible. Notify us straight away of any changes or errors. Check the period covered by this statement and note your member number – quote this number with any queries. The Chamber Pension Plan statement is designed to provide information about your pension account at a number of different levels of detail. The Account Summary gives you the current value of your account. The growth/ (decline) in your account is calculated by subtracting the amount of money you and your employer(s) have put into your account from the current value of your account. The Transaction Detail section gives you the value of your account at the beginning of the statement period, including contributions/redemptions and unit price percentage change during the statement period. You will also notice a detailed breakdown of each contribution/redemption, including the dollar value and the units purchased/redeemed in each transaction. There should be a minimum of six transactions on your semi-annual statement. Please contact the Administrator if this is not the case. The statement also shows the month your employer sent in your contributions. Please note that if your employer sends in contributions a month in arrears (for example, June's contributions were sent in July), they will appear on your statement during the month they were received (so the June contributions will appear in July).

People are generally living longer, healthier lives than in the past, which means if you retire at age 65, you may spend more than 25 years in retirement. That’s a long time to live on a “basic” retirement income, so now, more than ever before, it's vital that you start saving for your retirement as soon as you can. By starting to save today, you’ll be better prepared to grow your future income and enjoy more security during all those years after you stop working. Your retirement income needs will depend on what your expenses are likely to be, but it is generally accepted that you will need between 70% and 85% of your pre-retirement income to live comfortably in retirement. When thinking about how much income you will need when you retire, here are a few important details to bear in mind: How much you have saved so far. How you have invested your savings. When you’d like to retire. Other income you expect to receive in retirement. How will your medical expenses be paid. How long you think you’ll live; and Your spouse or partner’s situation – does he or she have a source of retirement income? Normal Age of Pension Entitlement As of January 1, 2017 the “Normal Age of Pension Entitlement” increased from 60 to 65 - however any person born in 1969 or earlier may choose to maintain their “Normal Age of Pension Entitlement” at age 60. Once you reach the age of 60/65 (age 50/55 in the case of early retirement) there are certain options you are eligible for in respect of your account, beginning the first day of the month following your retirement date for early retirement or the first day of the month following your 65th (or 60th for members born in 1969 or earlier) birthdate. Pension payments The purpose of The National Pensions Act is to provide and mandate a means for members to contribute to their retirement savings during their working careers. On retirement, these savings are used to provide an income stream to allow members to support themselves once they are no longer working. In other words, a member contributes to their pension plan each month so they can receive a regular income payment after they retire. The Chamber Pension Plan is a Defined Contribution Plan. In short, this means that an account is opened for each member and the amount of money they receive after retirement is based on the amount of money contributed to their individual account while they were working, including both the employer and employee portions, plus or minus the net return that has been earned on those funds during the life of the member's account. Unless a member's retirement savings are less than CI$5,000, a lump-sum cash payout of retirement savings is NOT an option. The retirement savings must be used to provide an income stream. Joint and survivor The National Pensions Act dictates that all pensions must be “joint and survivor” with a member's spouse if the member is legally married on the date of their retirement or death. If this scenario is relevant to you, please contact us for additional details. Options on Retirement When a member reaches retirement eligibility age there are three options, outlined below, which allow them to begin drawing their pension as income. If you are approaching retirement age and would like to discuss these options in more detail please contact our team. 1. LUMP SUM This option is ONLY available if the total value of a member's retirement savings is less than CI$5,000. In this case, the Trustees of the pension plan may allow the member's pension to be paid in one lump-sum. Please see Withdrawal Options for additional information. 2. Retirement Savings Arrangement A Retirement Savings Arrangement (RSA) is simply the member’s same account they had at retirement date, but which has now been approved by the Director of Labour and Pensions to begin making retirement payments. As a general rule of thumb, the RSA is the best alternative if a member's retirement savings are less than CI$200,000. Unlike a life annuity, an RSA will not necessarily provide a lifetime pension as it is structured to pay out a member's pension by a set amount per year until the account is depleted. An RSA is more cost-efficient than a life annuity since there is no element of profit to a life insurance company built in. The Director of Labour and Pensions must approve all RSAs to ensure they comply with The National Pensions Act. Read the latest update about RSA here 3. Life annuity On retirement, a member's retirement savings can be transferred to a life annuity. Life annuities are typically offered by life insurance companies. The member's retirement savings are invested by the life insurance company and used to provide a regular income stream to the member for the remainder of their life (and their spouse's life if the member is married at the date of retirement). The amount of income paid will depend on the size of a member's retirement savings. The larger the retirement savings, the larger the retirement income. The Director of Labour and Pensions must approve all life annuities to ensure they comply with The National Pensions Act. If you are considering a Life Annuity, please contact us for the detailed list of criteria set out in The National Pensions Act.

It can be difficult to save money whether it be for holidays, a new car or Christmas. The Chamber Pension Plan understands that not all your savings can be put away into your pension fund; we all need a rainy-day fund and life is for living as well. But we do know a thing or two about saving money. If you need some help to get your savings started follow these simple steps – and remember, making small steps will reap big returns. Create a savings goal Knowing how much you need to save is the first step. From there you can work out the kind of changes that you will need to make to reach your goal. It may be worth saving a little extra for the unexpected. Look after the cents and the dollars will look after themselves The old sayings are the best. Put simply, small savings add up. Cut out coffees, lunch out and walk or cycle a few times a week instead of using the car or the bus. You will be surprised how much you can save in a month. Reassess your outgoings That said, don’t ignore your bigger monthly outgoings. How much are you spending on cell phone data? Do you have cable but spend most evenings on Netflix? Consider whether some of the products and services that you spend your money on are really a good use of your hard-earned money. If not, consider downgrading to a cheaper package or perhaps cancel them altogether. Sell items you no longer need or use Why not consider selling things that you no longer use or need. Not making homemade bread in the bread maker or always tripping over kids toys they have long got bored with? Why not give unused and unwanted items a new home and make some money in the process. Don’t forget about your pension While we all need a vacation every now and again and a pot set aside for life’s emergencies, it is important not to forget about your pension. Try to put aside something as often as you can and make additional voluntary contribution (AVC) payments whenever possible. The Chamber Pension Plan portfolio is managed by internationally recognised investment managers who want to see your money grow as much as you do.

Don’t wait for your children to become teenagers before you start teaching them about good personal finance habits; these life lessons can be taught at a much younger age. Children as young as three can be taught about the basics of spending and saving. Young children can also be introduced early on to the subject of saving for something worthwhile, an excellent concept that will remain with them as they get older. Keep it fun To teach young children about the importance of saving, it’s a good idea for children to have a goal in mind when it comes to something they really want, so perhaps set up a jar or a piggy bank and use this to fill with coins that can be earned when your child behaves particularly well. The money can then be saved towards a toy that they really want, although it’s best to ensure that the item isn’t too expensive otherwise the child will probably lose interest. Likewise, parents can establish jars for other reasons, such as money to be spent on treats such as ice cream or special activities. Periodically counting out the money already saved is a fun way to keep their interest as to how much is already in the pot. Teaching responsibility Children can also be taught from an early age how money is used to buy things and the value of the things they want. It’s a good idea to allow older children to have a small amount of money with which they can pay for purchases such as items for their lunch box at the grocery store. Monetary responsibility can increase as your child grows. Pre-teens can start to earn pocket money for extras that they want. There are some excellent young savings plans on island for young teenagers to open up, as it shows them to appreciate what it means to have a bank account. Such accounts come with debit cards so they can master the art of using ATMs as well. Teenagers should also be taught the value of compound interest, so they can learn the value of starting investing early in a pension plan. They should also be aware of the risks involved with online shopping; including the dangers of credit card fraud and rules should be in place so that they can only make purchases with parental consent. Parents play a vital role in educating their children about the value of good personal finance. Talk regularly to your children about the value of items purchased, how important it is to save for a rainy day and how planning for the future as early as possible is always a wise move. At the end of the day, parents need to lead by example, so do your best to ensure that your personal finances are in good order and hopefully your children will follow your example.

When issues arise with employees, there is often more to the story than meets the eye. Poor performance, absenteeism, low morale and low productivity are symptoms of a much bigger problem — money. Not surprisingly, money continues to be the number one cause of stress for people around the world. This stress can affect not only mental and physical health but also work performance. The typical worker will make many financial decisions during their working life — buying a home, having a family, or saving for retirement. Many of these decisions are made without an understanding of how to correctly manage these decisions. Offering financial education in the workplace ensures that employees have access to information when it is relevant to them. And by improving their knowledge, skills and confidence around money, employees will be better able to manage debt, save for emergencies and plan for their retirement. Employers also benefit. Research shows that financial literacy in the workplace can lead to improved productivity, including: Increased employee retention, morale, productivity and profits Better health Lower absenteeism and health care costs In this financial literacy series, we start by going over the basics. Explain the difference between income and expenses Make a spreadsheet or write a sample monthly budget with a pen and paper. List total income, and break expenses up into categories, such as car payments, insurance, a cell phone bill, and entertainment. Mention that income and expenses can fluctuate month to month, so tracking them over time is essential. Make a ‘real-life’ sample budget Include your team's actual income and spending from last month. Explain to them that income includes things like: gift-money salaries from part-time jobs money from selling items (for example, cars, phones, or clothes) Then, give them some examples of monthly expenses: cell phone bills streaming services (for example, Netflix or Hulu) haircuts money spent going out with friends Cover these basic examples first, then introduce a more complex sample budget that includes rent, utilities, and groceries. Explain the difference between a need and a want Housing, utilities, and other core bills are spending priorities. If money is tight, paying rent or car insurance is more important than going out to eat or buying a new cell phone. Ask your team to subtract their expenses from their income, and discuss how balancing needs and wants can impact their budget. Ask them to identify needs that take priority and any desires that aren't necessary to save money. Show them how to make bill payments The most common method of making payments is via a debit transaction. Show your team an online bill payment portal like CUC's PowerPay, or an online banking platform like Butterfield Online. Explain how to fill in debit card billing information, create security passwords, and manage beneficiaries and payees. Cheques are becoming less frequently used methods of payment, but if you wish, you may show your team a physical cheque and explain how to fill in the date, payee, payment amount, and signature fields. Introduce the importance of saving money While saving money is a separate lesson on its own, you'll need to mention it when you explain budgeting. Let your team know that keeping 10 to 20 per cent of their income is crucial for unexpected bills, a down payment on a home, and retirement. If there are any avid readers on your team, you may wish to purchase a copy of The Richest Man in Babylon for them. After being in print for nearly a decade, it is regarded as a classic of personal financial advice. Use budgeting resources to simulate real-world scenarios After covering the basics, have your team create and manage hypothetical budgets using smartphone apps. Personal finance simulators can provide accessible, concrete examples and reinforce budget management skills. For example, use the Mint app, which is free for iOS and Android devices. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date indicated and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and nonproprietary sources and are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Chamber Pension Plan, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any of these views will come to pass. Reliance upon information in this post is at the sole discretion of the reader. The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This post contains general information only and does not take into account an individual’s financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.

A mortgage to purchase a home is probably one of the biggest loans that you will ever take out in your lifetime. Taking out a loan with a mortgage provider, such as a bank, should never be taken lightly; after all, you will most likely be paying off your mortgage for most of your working life. Figuring out how much you can afford to pay back monthly will be your first step in deciding how large of a mortgage you can afford. As with saving for your retirement, you will only be able to properly calculate how much you can afford to borrow once you have worked out your monthly budget. This should include a sum of all your earnings (and your partner’s if you are entering into a joint mortgage) less your pension payments, versus all your combined expenses. Take into consideration necessity items, such as food, utilities, gas for car, school fees, etc. when planning out your budget. But don’t forget to include regular costs for entertainment/dining out, travel and even that occasional latte, which all adds up over time. Determine how much you would like to put away in saving each month and then you can better calculate how much you have over for paying off a mortgage. You should also consider the interest rate that is being charged and the type of loan you take out, as some banks offer flexible rate mortgages while others are fixed. More importantly, you should realise that mortgage rates will fluctuate with interest rates in general (even fixed rate mortgages are usually only fixed for a certain period of time), so you need to be able to accommodate an increase in interest rates, should it occur. Once you begin making regular payments it is worth remembering that your monthly mortgage payments will be comprised of a percentage that’s paying off the actual amount borrowed and a percentage of interest that you must pay to the bank each month, so ideally it is best to pay off your mortgage as soon as you can. Making extra payments on top of your regular payment means you could manage to save thousands of dollars in interest payments over the life of the loan, because every time you repay some of what you owe, you are charged less interest, so more of your future payments go towards repaying the outstanding principal. Taking on a home mortgage is a big responsibility but with good planning and prudent saving your dream of buying your own property can be a reality.

Every employee in the Cayman Islands must contribute at least five per cent of their monthly earnings into an approved pension plan, with their employers also contributing at least five per cent to the pension plan for their employee. Ten per cent of your earnings might seem like an adequate sum of money to be saving for your retirement, but even if you are a careful budgeter and have calculated how much you will need to live on, you may still need a little extra help financially when you are finally ready to retire. Unexpected trips off island, home and car repairs and medical costs can all materialise when you least expect them. That’s where additional voluntary contributions (AVCs) can make all the difference. AVCs are a great way to add to your existing pension contributions to help ensure you will be financially secure when you finish your working life, ready to take on any unplanned expenses that may come your way. Making an AVC payment is a simple procedure. For Chamber Pension Plan members it involves completing an enrolment form and making the payment. You can set up a regular payroll deduction with your employer to make regular monthly payments, or you can set up an AVC account with us and make your payments as you wish. A great benefit of making AVC payments therefore lies with its flexibility. If you have extra cash over one month you can make a larger AVC payment than normal; if you have nothing to spare at the end of the month you can simply make no AVC payment that month. The control is with you. The Chamber Pension Plan is comprised of a number of different Lifecycle Funds which target your specific financial goals. When you make an AVC payment you can choose into which fund the AVC will be paid, giving you even more flexibility and control over your pension savings. Just as with you and your employer’s regular pension contributions, tracking your AVC payments is a simple and straightforward procedure. You can follow the growth of your contributions with your semi-annual personalised account statement, which breaks down your contributions, those of your employer and your AVCs, creating a record of your pension plan that’s easy to follow and easy to understand. Your statement is accessible via the Chamber Pension Plan account access. (Gaining access is easy – just call our Chamber Pension Plan hotline 345-745-7630 if you need a username and/or password.) AVCs are a flexible tool which can make the difference between a pension that covers your basic needs and one that truly allows you to live your retirement comfortably. If you have a little extra cash to spare, it is a great method of investing for your future.

Pensions have many advantages as an investment savings plan for your retirement years. By using a variety of investment methods, pensions are designed to provide people with more income than they could save by themselves during their lifetime. Before we get into the details of how that works, we’d like to reiterate the importance of retirement savings generally – pensions or otherwise. Many people are not saving nearly enough to give them the standard of living they hope for when they retire. The estimated income required at retirement is around 70% of your current income. For example, if you currently earn $60,000 per year then you should plan to live on about $42,000 per year in retirement. This means you would need over $1.2 million saved at retirement. This example assumes you are retiring at age 65 and live until 95, which is a reality for many people. So how can a pension help you achieve this? Increased value over time During the accumulation phase, the pension fund will tend to increase in value because of two things. First, it will increase because of your employer’s matching contributions made into the fund, which is like getting free money. Second, the investment value will increase over time due to returns generated by the assets, such as stocks and bonds, that are in the fund. For example, in a pension scheme that requires annual contributions of $1,000 over 40 years, the fund’s assets will build up to $120,800 in value at retirement if the return on cumulated funds was 5% per year; but the same contributions over the same period would grow to $154,800 if the rate of return was 6%. This simple numerical example illustrates that small changes in the return on assets can have a dramatic impact on the size of the pension fund at retirement, and hence on the pension that can be paid from this accumulated fund. In practice the returns on pension fund investments will vary every period, hence introducing some risk into the size of the pension fund at retirement, and types of pension schemes differ according to who bears this investment risk. The basic advice with pensions is to put in as much as possible, as early as possible. If you delay saving into a pension, you will then need to contribute a higher percentage of your income to achieve a comfortable retirement. The sooner you contribute, the longer your money will have to grow as the compounding effect of investment returns can make a huge difference over the long term. Pension benefits in Cayman There are several benefits for those who hold pensions in the Cayman Islands. The main benefit being that the government requires your contributions to be matched by your employer (typically 5% to reach the legislated total of 10% of your income). This essentially doubles your savings. Many companies in other countries are not obligated by law to provide pensions to their employees and those that do offer it as an employment benefit. Additionally, your loved ones such as your spouse and children (or your named beneficiaries or estate) are eligible to receive your pension benefits after you pass. You also have the option of making Additional Voluntary Contributions (AVCs) to your plan, which will help it grow faster. In certain circumstances these AVCs, and even a certain amount of your pension balance, may be withdrawn prior to your retirement, such as in the case of disability or to purchase a home. We would be happy to provide further details in these circumstances.

The Cayman Islands Chamber of Commerce Pension Plan is pleased to advise that the Ombudsman’s Office (OMB) has completed it’s review of the breach and, after careful consideration of the information made available, has indicated that the actions taken to contain the breach were satisfactory and that it is unlikely that the data subject’s rights and freedoms were prejudiced as a result of the reported incident. Who to contact for more information? If you have any additional questions please contact us at 345-943-9125 or 345-943-9130 or send an email to pensions@chamberpension.ky

Most, if not all, developed countries throughout the world have some form of pension arrangement for their citizens, meaning that millions of people globally rely on these systems for financial security when they are beyond a viable working age. You may be surprised to hear that the modern pension system in the Cayman Islands is still quite young, having only been established just over 20 years ago in 1998. Read on to learn more about the history of pensions in the Cayman Islands. 1940s – 1960s Between the 1940s to 1960s the small Cayman Islands economy was largely supported by the maritime and seafaring industry. Caymanian seamen would head out to sea on merchant ships, travelling the world and transporting cargo of various types, including fuel, crude oil, iron ore, building materials, etc. These seamen sent their earnings back home to their families in Cayman, which assisted in building homes, opening small local commerce and also creating a capital base for savings and loans operations in the Islands. 1960s – 1970s As the economy matured in the late 1960s, several multinational corporations began to come into the Islands, and with the birth of the financial industry in the early 1970s, bolstered by economic, racial and political stability, there was an increase in foreign investment and economic activity. Several of these multinational companies, such as Barclays Bank and Cable & Wireless introduced their own pension plans, many of which were non-contributory Defined Benefit plans that these organisations offered to their employees around the world. The Cayman Islands, being a tax neutral jurisdiction, became very popular for financial services and banking during this time. Early 1980s As the economy expanded further in the early 1980s, discussion intensified about the need for a national pensions or retirement planning system, especially important in the absence of income tax or Social Security in the jurisdiction. The Government who were elected in 1984 passed the Labour Law, which had been in circulation for a short time. Next on the agenda was the topic of pensions/retirement planning. An in-house consultancy and advisory group was established which came up with a proposal for a Government-operated scheme that was titled the Cayman Islands Social Security scheme, known as ‘CISS’. 1986 This CISS proposal was introduced to the community for feedback in 1986-7, and quickly drew significant opposition from the private sector. It dissipated. 1988 After the 1988 General Elections, the CISS scheme was revised and renamed the Cayman Islands Pensions Plan (CIPP). The CIPP was no more popular than the CISS, as objectors complained about the poor record worldwide of Government/State-operated pension schemes and the propensity for these to be abused and raided by its Government sponsors. 1990 In mid-1990 a draft Discussion Bill for the CIPP, and later a Green Paper (a Bill that goes to the Legislative Assembly) was created and circulated. The Bill was eventually withdrawn from circulation and from the agenda of the upcoming Legislative Assembly meeting due to significant public opposition. 1992 In 1992, a broad-based and diverse private and public sector consultative committee comprising representatives of all industries and professional sectors in the Cayman Islands was established. This was known as the Pension Plan Advisory Committee (PPAC). The Committee drew examples, research and expertise from all current and ongoing pension plan initiatives worldwide. Overall, the conclusion was that a pensions/retirement planning model that featured a system for the private sector that was robustly regulated by Government was the best option for the Islands. The legislation for what became the National Pensions Law (NPL) and Regulations was drafted not long after. The legislation drew from existing frameworks and was also forward-looking. It included safeguards and features that were unique to the Cayman Islands context. Some of the principles included: a very conservative set of investment regulations, as an introductory phase to discourage risk-taking by investment managers; a phased-in approach followed by a low contribution rate to give the economy a chance to adjust to pensions withdrawals - by employers and employees; a system that allowed existing pension plans to be amended to comply with the NPL; and the requirement for actuarial assessments/reviews, to accommodate the grand-fathered Defined Benefits plans which joined under the new legislation. 1996 The legislative package was taken to the Legislative Assembly in 1996 and passed, but the effective date was not activated by the time the November 1996 General Elections took place. 1997 The Government was re-elected in 1996, and the NPL was assented to in 1997. 1998 However, due to some parliamentary and governance developments, the NPL package was subsequently suspended by the Legislative Assembly and sent to a Select Committee of the House. In that Select Committee, several changes were made to the legislation, but the NPL and a full set of Regulations were then brought into force in 1998. 2016 After nearly 20 years of no significant changes to the National Pensions Act, Government passed the National Pensions (Amendment) Act, 2016, putting into place some amendments that were deemed appropriate to ensure that employees’ lifestyles would be more comfortable in their retirement years. A few of these changes included increasing the normal age of pension entitlement to 65 and increasing the Yearly Maximum Pensionable Earnings to CI$87,000; however, to date many sections of the National Pensions (Amendment) Law, 2016 have not been implemented. 2020 At that time (in 1998) it was the understanding and intention that there would be regular reviews and finetuning of the legislation, particularly around administration and enforcement, resources, investment regulations, public education and a gradual increase in the Contribution Rate. However, this has not been the case and has led to recent legislative actions including a Public Accounts Committee hearing in June 2020 aimed at increasing transparency of the pension system for the public. Looking Ahead Based on decades of experience managing pension plans in the Cayman Islands, the Chamber Pension Plan believes that having a pension system is still the best option for these Islands while also recognising the overdue need to build and improve upon the legislative package and its administration and enforcement framework. Thank you to Mario E. Ebanks for his contributions to this article. About the Chamber Pension Plan The Chamber Pension Plan was established in May 1992 (six years prior to the NPL) and was the first multi-employer pension plan approved by the Regulator in the late 1990s. As Cayman’s longest-established and only not-for-profit plan, the Chamber Pension Plan’s mission is to provide the best-performing and most trusted pension plan for employees and businesses in the Cayman Islands in an efficient and cost-effective manner.

It’s time to start contributing to your pension again as the suspension/holiday period provided for under the National Pensions (Amendment) Act, 2020 has ended. Employees and companies must restart contributions payments starting with October earnings. With the recent market uncertainty caused by the COVID-19 pandemic, you may be thinking more about how your money is being invested by your pension provider. You’ve probably come across the following terms if you’ve done a bit of research on investment strategies: Combating volatility by dollar cost averaging Staying balanced across asset classes (e.g. stocks, bonds, etc.) Diversifying across markets and sectors Buying low and selling high Knowledge of financial markets and investment tactics aside, choosing where and how to invest on your own can require an investment of quite a bit of your time as well. One of the major benefits of pension providers such as the Chamber Pension Plan is that they leverage the expertise of established investment advisers to take away any guesswork you might otherwise encounter when investing on your own, so you don’t have to worry about mastering a variety of investment strategies such as those listed above. Lifecycle Funds Chamber Pension Plan offers “Lifecycle” Funds (also known as “target date” funds). Based on your age and projected retirement date, these funds reflect your changing needs throughout your working life by automatically adjusting the combination of assets they invest in to reflect your evolving investment needs and goals. In other words, the funds automatically shift the balance of your investments toward less risky assets as you near retirement. Generally, pension plans offer a range of funds for you to choose to invest in. Chamber Pension Plan’s Lifecycle Funds simplify that fund selection. When you join the plan you are automatically allocated, based on your age, to the Lifecycle Fund representing your expected target retirement date. However, you have the flexibility to move to a more conservative Chamber Pension Plan Lifecycle Fund at any time. Fixed Income vs Global Equity The combination of assets that the Chamber Pension Plan’s Lifecycle Funds invest in are categorised as ‘fixed income’ and ‘global equity’. Fixed-income investments provide payments (in the form of interest) to investors in set amounts at fixed intervals. Some of the most common types of fixed-income products are corporate or government-issued bonds (more specifically the latter, treasury bonds or “t-bonds”). They are considered more conservative (i.e. less risky) investments than stocks because they are not as sensitive to events that can cause fluctuations in financial markets (such as economic downturns). Additionally, US treasury bonds are widely accepted as particularly secure investments due to backing by the US federal government. The Chamber Pension Plan’s fixed income manager is Income Research + Management. Global equity refers to an investment in stocks from around the world that earn dividends. Although subject to market fluctuations, these investments are generally better for long-term investment to provide higher rates of return. BlackRock is the global equity manager for the Chamber Pension Plan. How Our Lifecycle Funds Work for You By using a combination of fixed income and global equity, Chamber Pension Plan’s goal is to diversify the portfolio of investments for each Lifecycle Fund to increase their total value over the long term. Over time, a Lifecycle Fund gradually adjusts the mix of asset classes to become more conservative as you approach the year in which you expect to need your retirement assets. Put simply, those further from retirement have more time to benefit from riskier investments that pay higher returns over longer periods whereas those closer to retirement will require more stable investments to limit losses in the short term. Therefore, Lifecycle Funds that are targeting retirement at a later date will have a higher percentage of equity investments in an effort to maximise returns over a longer term. Conversely, funds that are targeting retirement at an earlier date will have a lower equity allocation and a higher percentage of fixed-income investments in an effort to minimise the risk of capital loss. Each fund is rebalanced on a quarterly basis to maintain the target asset allocation. When you invest in the Chamber Pension Plan Lifecycle Funds: You can be sure that your pension account is broadly diversified and professionally managed. You don’t have to remember to adjust your investment mix or make any transfers as your target date approaches – it’s done for you. You don’t have to monitor your account to be sure you are not straying from your investment strategy — the Chamber Pension Plan Lifecycle Funds keep you on course. Follow the link to learn more about our Lifecycle Funds.

There are few items more costly in life than buying a car or a home. Prudent saving before you make a large down-payment of cash is not only sensible, it’s a necessity, especially if you are a first time car or home buyer. Save before you buy You may not be able to buy a car outright, but even if you take out a loan to fund its purchase, it’s still advisable to save as much as you can beforehand, because purchasing a car is never the only cost associated with successfully getting yourself on the road. Insurance can be costly, especially if you are in your late teens or early 20s, when insurance costs can be higher. Then there are also vehicle licensing costs, driver’s license costs, transfer fees (for second hand cars) and of course, gas. It can be difficult to obtain a mortgage from banks, especially if you are looking to fund the majority of your purchase by a mortgage. Saving is therefore critical to the success of your purchase, not only to cover the deposit required by the bank, but also to cover Government stamp duty, legal fees and real estate agent fees. When just starting out, your first major purchase is likely to be a car. You may not have a significant amount of income coming in, but neither are you likely to have big financial expenses either (such as a large mortgage or school fees). This is the time to save and watch your money grow in time, before you make the next step to actually make a big purchase. Start by assessing how much you earn versus how much you spend on a regular basis. Doing so you can establish a budget you can live by. The budget should include a modest amount of savings every month, no matter if you are hoping to buy a house, a car, a jet ski or a bicycle. Saving isn’t just for the young, however. Saving on a regular basis makes sound financial sense whatever your age, and the sooner you begin, the greater the savings in the long run. If you have a car or home in mind, it’s always a good idea to create a personal savings plan. This will give you a realistic timeframe to save as much as you can to put towards your car, home or whatever your end goal is. Actually write down your financial goals and how you are going to achieve them and make sure you refer back to it on a regular basis so you can assure your savings are on the right track.