The TCN International Retirement Plan For the membership of InsideNGO Endorsed by
Plan Partners Working Together to Bring you Retirement Solutions Alexander Beard Group plc Since its foundation in 1987 the Alexander Beard Group plc have specialised in providing pension, healthcare, investment and insurance advice and solutions for internationally mobile executives, educators and professionals. The Group have offices in the UK, Australia, Canada, New Zealand, South Africa and the United States of America. www.abg.net La Mondiale Europartner (LMEP) LMEP was established in 1989 specialising in offering pension and Employee Benefits to internationally mobile workers ( expatriates ). Its parent company AG2R La Mondiale is one of France s largest corporate Retirement Plan providers and was established in 1905. www.lamondialeeuropartner.lu The Vanguard Group n Founded in 1975 n In 1976 launched the world s first index mutual fund for individual investors n Over $2.2 trillion in assets* under management for investors worldwide *As at 30 September 2012 1 www.vanguard.com
About the plan We recognized that it has been difficult for many InsideNGO members to find an affordable retirement option for their TCN staff. The TCN International Retirement Plan takes into account modern investment theory and practice, technological innovation and the changing requirements of TCN s working in the NGO world and is modeled upon the innovative and highly successful International Schools Retirement Plan which has over 3000 past and present members around the world. It has been produced by ABG s International Schools and Humanities Division with the help of La Mondiale Europartner and Nordben Trustees. 2
Features and Benefits n Available to TCN employees of NGOs and charities n Individual, portable and transferable account n Simple, low cost charging structure n Low minimum contributions n Choice of currencies n Three predetermined investment strategies n Automatic switching option n Guaranteed funds available n Secure, online account access n Detailed annual statements n Tax efficient transfer options for individual participants from UK and Australia* n Flexible retirement benefits from age 60 n Not available to US citizens working for US registered NGOs * Tax efficient options may also be available to other nationalities. 3
Investment Choices Saving for retirement requires different strategies dependent upon the period of time available in which to save and the member s personal attitude towards risk. To meet these needs the plan offers a range of investment choices designed to meet the needs of both the risk-averse investor and those who appreciate the value of asset-backed investing over a longer term. Contributions may be allocated to one or more of the investment choices and may be switched at any time (see technical specification). Alternatively, the automatic switching option may be selected (see overleaf). The Capital Guaranteed Fund The Capital Guaranteed Fund is designed to offer the potential for modest growth over the short-term with a guarantee that it will not fall in value. The fund offers a guaranteed rate of interest each year, fixed in accordance with Luxembourg regulations. In addition, after the end of each year, a bonus interest payment is calculated for all members with investments in the fund at 31 December. The bonus depends on the investment return achieved by the assets in which the fund has been invested during the year. The fund is available in Euro, US Dollar and Pound Sterling options. The Unit-linked funds You can choose to invest in one or more of the funds in the list below. Fund Name Vanguard Global Stock Index Vanguard US 500 Stock Index Vanguard European Stock Index BlackRock UK Equity Vanguard SRI Global Stock Vanguard Euro Investment Grade Bond Index Vanguard Euro Government Bond Index Vanguard Eurozone Inflation-linked Bond Index Vanguard Global Bond Index HSBC Amanah Global Equity Index Description, Currency Passive Global equity, US Dollars Passive US equity, US Dollars Passive European equity, Euros Passive UK equity, Pound Sterling Equity selected to reflect Socially Responsible Investment issues, Euros Passive Corporate bonds, Euros Passive Government Bonds, Euros Passive Eurozone inflation-linked bonds, Euros Passive Global Bonds, US Dollar hedged Range of assets that complies with the requirements of Sharia Law, US Dollar 4
Automatic Switching If you do not want to choose the funds you invest in or when to switch, you can select one of our lifecycle automatic switching options. This option automatically moves your savings from higher to lower risk investments in pre-determined steps as you approach your plan s retirement age. There are three different options: Cautious, Balanced and Adventurous to suit whatever level of investment risk you feel comfortable with. All start by investing in funds with the objective of seeking good investment return and then switch to funds whose objective is to consolidate those gains in the final years before you reach the plan retirement age. The Cautious lifecycle option starts to switch sooner than the Balanced lifecycle option, which in turn starts to switch sooner than the Adventurous lifecycle. The charts below show how the different options are invested over the duration of your career. Default Investment If you do not specify in which fund you wish your savings to be invested then they will be invested in the Balanced lifecycle option. Value of investments can fall as well as rise Please note that investment performance is not guaranteed and the value of your fund may fall as well as rise. Past performance is not necessarily a guide to future performance and you may get back less than you paid in.
Transfer Options Transfer options are available to many different nationalities dependent upon home country pension regulations. The Alexander Beard Group plc undertakes to investigate each and every option available for any member before advising on the best transfer route to take. For Example: UK Citizens Under current U.K. legislation, providing the transfer payment does not exceed 100% of the member s annual earnings, the contributions will be eligible for a tax credit at the point of investment. It can then form the basis of a new, or be added to an existing, U.K. Personal Pension Plan, which itself may, at a later date, be transferred overseas, subject to the QROPS (Qualifying Recognised Overseas Pension Scheme) rules, should a member decide to emigrate, or retire away from the U.K. Australians If an Australian member of the TCNIRP returns to his/her home country, it may be possible to transfer the accumulated funds as an undeducted contribution to an Australian Superannuation Fund. Under regulations that came into force on the 1st July 2007 single undeducted contributions that transfer into an Australian Superannuation Fund may be allowed up to pre-defined limits depending upon individual circumstances. Europeans The plan allows for transfers without cost to any recognised pension plan within the E.U., subject to any individual country contribution limits, tax restrictions and rules. ABG will undertake to provide any European members with full information to allow them to decide on the best option for their funds. 6
Disclaimers n The information given in the Transfer Options pages is intended only as general guidance for citizens of Australia and Great Britain who are living and working outside their home country. n There are many factors that can influence your personal tax situation and we would advise you always to consult an appropriate tax adviser when choosing to return to your country of origin. n Our information is based upon our best understanding of current legislation in the relevant jurisdictions. We make no assurances as to the tax consequences applicable to a customer, nor the availability of a specific product at any time in the future. n We must point out that value of investments can fall as well as rise. The future value of your fund could be less than the contributions you have paid in, it is not guaranteed. 7
Technical Specifications Purpose of the Plan The purpose of this plan is to build up a retirement fund by saving in an individual retirement plan held in the name of each individual member. Execution of the Plan Funding of the Individual Retirement Plan The individual retirement account of each member is funded by the payment of contributions from which management expenses are deducted as specified on page 10. Availability of the Individual Retirement Account From the age of 60 a member may choose to receive his or her savings in the form of a capital sum or an annuity n Lump sum option: The value of the retirement plan is calculated on the last working day of the week in which the request for redemption is received. n Annuity option: The Insurer shall transfer the total value of the plan on the last working day of the week in which the member s request is received to an insurance company of the plan holder s choice. Any bank charges or exchange risk resulting from such transfer shall be borne by the member. The annuity will be paid by the chosen insurance company under the terms and conditions agreed with the member. Furthermore; n A member who leaves the employer for whatever reason (resignation, dismissal, etc.) may keep the rights vested in his/her individual retirement plan at the date of departure. n If the account plan to be funded by new contributions, benefits will continue to accrue under the same conditions. 8
Technical Specifications Death Benefit In the event of the death of the member, the value vested in the retirement plan will be paid to the beneficiary or beneficiaries designated on the individual membership form or otherwise according to the provisions of the contract. This lump sum is paid in the reference currency of the member s plan, unless instructed otherwise. In default of a designated beneficiary in case of death, or if this designation has lapsed, the capital sum is applied as follows: n to the spouse, except if legally separated, n otherwise to the legitimate, recognised or adopted children in equal parts, n otherwise to the ascendants or surviving ascendants of the insured in equal parts, n otherwise to the insured s heirs and assignees. Calculation of the Value of each Retirement Plan Guaranteed Funds In this fund the capital is guaranteed and the rate of return is determined by the profit share. The profit share, determined at the end of each year, is 100% of the net surplus recorded on each Fund by the Insurer. The amount of the profit share attributed to the Guaranteed Funds on an interim basis is credited on the last working day of each week as a percentage of the anticipated share of the surplus, less the management costs outstanding. 9
Technical Specifications Unit Linked Funds Each investment strategy consists of a number of managed equity funds and bonds selected by the Insurer. The investments held are expressed in units and the net asset value of each unit is determined on the last working day of each week. The number of units held changes each week: n by the addition of units acquired through a transfer or payment of contributions, n by reinvestment of 100% of the net dividends on the day of their distribution, n by deduction of the number of units corresponding to savings redeemed or transferred to another strategy, n by deduction of management costs. Charging Structure The TCN International Retirement Plan has a simple and transparent set of charges as follows. All of the incidental administration and day to day plan management charges have been paid for by your employer on your behalf. n All plan administration charges are paid for by the individual member organisation n 95% of all contributions are invested n Plan annual management charge is 1.5% n Switching between funds is charged at 0.3% of the value of the amount switched, with a minimum charge of 50 Euros and a maximum charge of 150 Euros (or the equivalent amount in GB Pounds or U.S. Dollars). Switching charges do not apply when the automatic switching option is selected. 10
Technical Specifications What happens if I stop paying? 1. There are no early surrender penalties or charges applied to the full value of the fund at any time should the plan member die. 2. There are no early surrender penalties or charges applied to the full value of the fund should the plan member transfer out to another recognised and authorised pension arrangement (see section transfer options ). Annual Statements At the end of the first quarter of the year a Statement of Account, for the previous calendar year, representing the value of their investment held within the TCNIRP will be distributed to the employee and will show the following information: n The value of each account as at 31st December for the year in question n Total contributions invested in the plan during the year net of annual management charges n Total charges deducted n Detailed breakdown of your investment portfolio n Total investment return since commencement Members of the plan must keep Alexander Beard Group informed of any changes to their personal email address, so that annual statements can be distributed correctly. Maturity or Transfer of the Plan On retirement, or in the event of a transfer, the member must send the following documents to Alexander Beard Group; n A dated and signed letter specifying the manner in which the individual account is to be paid with appropriate payment instructions. In order to meet International anti-money laundering regulations members must provide an original or certified photo identification document. 11
For more information about the benefits of The TCN International Retirement Plan please contact The Alexander Beard Group plc by email to: ishd@abg.net or call Janet Jenkinson on +44 (0) 8446 780078 or +44 (0) 151 346 5460 The Alexander Beard Group plc In the UK The Alexander Beard Group plc is authorised and regulated by the Financial Conduct Authority. Not all products and services offered by Alexander Beard Group plc are regulated by the Financial Conduct Authority. The product described in this brochure is not regulated by the Financial Conduct Authority nor is it covered by the Financial Services Compensation Scheme. In Australia Alexander Beard (Australia) Pty Ltd trading as Alexander Beard (Australia) is an Authorised Representative of Sentry Wealth Management Ltd ABN 77 103 642 888 AFS Licence 227748. In Canada Alexander Beard Group clients are served by Rogers Group Financial, which is regulated by several Canadian financial regulatory bodies including the Investment Industry Regulatory Organization of Canada (IIROC). In New Zealand Alexander Beard (NZ) Limited is a registered Financial Services Provider governed by the NZ Financial Markets Authority and Financial Advisers Act 2010, and meets and exceeds the Code of Professional Conduct set out by that Authority. In South Africa Alexander Beard Group (South Africa) Pty Ltd. is authorised by the South African Financial Services Board (FSB). In the United States of America Alexander Beard (U.S.A.) LLC is a registered investment advisor, by the Financial Industry Regulatory Authority (FINRA). UK offices: Bath, Chester (Head office), Leeds and London International offices: Auckland, Johannesburg, San Francisco, Sydney and Vancouver (representative office)