When one changes employer, he/she has an option to take in cash own pension contributions with interest while the employer portion is compulsorily preserved as it is a form of deferred pay from your employer. The pace of your lifestyle after retirement is determined by what you would have saved during your working lifetime. Premature access to your retirement savings is greatly discouraged as it directly affects your retirement provision. Therefore, we encourage you to preserve your retirement savings for the future when you change jobs.
The CBZ Preservation Fund is therefore designed to protect your retirement savings. Under this fund:
- All assets are invested in our smoothed bonus investment portfolio which provides capital guarantee and steady growth. Our asset managers are Datvest.
- This is a pure retirement savings vehicle meant to secure your financial well-being in old age.
- Open to employer and employee pension contributions from previous employment.
- The accumulated retirement savings will be payable as a monthly income when one reaches retirement.
On death of the policyholder, your beneficiaries are paid the following:
- Accumulated Credit at date of death
- Accumulated retirement savings together with bonuses (Accumulated Credit) at date of retirement is determined.
- 1/3 of Accumulated Credit is paid as a tax free lump sum
- 2/3 of Accumulated Credit is used to purchase an annuity
- Only accumulated member contributions plus interest will be paid subject to tax.
- Accumulated contributions plus interest originating from employer will only be paid to member on retirement.