Group Allocated Annuity Plan
The Group Allocated Annuity plan is a unique group retirement/savings plan that provides guaranteed interest rates and flexible retirement options. The plan is designed to encourage employees to stay with the organisation by rewarding them based on years of service or plan participation. This plan acts as an excellent retention tool and a perfect complement to your organisation’s employee benefits plan
Product Overview
- Highly Flexible plan that can be used as a traditional defined-contribution plan, a voluntary savings plan, a deferred compensation plan, a profit-sharing plan and funding for End-of-Service indemnities.
- Supports contribution from both the Employer and Employees.
- Preserves both capital and interest and offers 5 years minimum interest rate guarantees.
- Invests in high-grade Eurobonds.
- Provides a vesting schedule which can be used to retain talented and high net-worth employees.
- On retirement, entitlements can be paid out in cash lump-sum, annuities or both, depending on what the employee wishes.
- Affordable and transparent fee structure
- Free on-going plan benefits for terminated employees.
- Customized participant’s kit including booklets, annual asset statements to keep you informed about your plan.
- Secure online access to view accounts.
Customized Plan Design: The Group Allocated Annuity plan can take the form of many different types of plans – from a traditional defined-contribution plan through to a profit-sharing plan. Whatever your needs, the plan can be tailored to meet them.
Simple: An amount of money, usually expressed as a percentage of salary, is allocated at 100% each year for each employee in the plan.
Guaranteed Interest Rates: The GAA fund is invested in high-grade Eurobonds which are rated AA+ or higher. MetLife provides five-year minimum interest rate guarantees for each deposit made during the policy year.
Investment Earnings: The GAA fund will be credited with excess funds if the return on investment is greater than the guaranteed interest according to the performance of the GAA monies invested by MetLife.
Vesting: This feature allows employers to reward and motivate employees who have been with the company over a period of time. The employee earns an increasing percentage of the employer’s contributions according to a vesting schedule set out in the plan. The employer decides on a suitable vesting schedule to ensure high caliber staff retention.
Funding For End of Service Indemnities: The employer's portion can be utilised to fund the mandatory end of service indemnity. The GAA Plan ensures that such financial obligations are no longer a liability entry in the employer's books, and funds will always be available whenever needed.
Retirement Options: At retirement, participants can opt to receive their accumulated funds either in cash or an annuity.
The following annuity options are available:
Life annuity
Life annuity guaranteed for a certain period
Life annuity with contingent annuitant
Eligibility
Any company registered in the Gulf with a minimum annual deposit of US$ 10,000 for the entire plan.
Currency
US Dollar denominated.
Payment modes
Payments can be made on a regular basis, as lump-sums, and can be both mandatory or voluntary. They can be made through direct bank transfers or by cheques.
Plan contributions can also be facilitated through payroll deductions and is usually self billed
MetLife group insurance policies contain certain exclusions, reductions, limitations and terms for keeping them in force. Contact your MetLife representative for more information.
/rajeev.jpg)
Saving for your future
/230x176_c061.jpg)
Saving for your retirement