FAQs

The FSC supervises and regulates occupational pension plans (OPP) and occupational registered retirement savings plans (ORRSP) under the OPBA.

The Commission does not regulate registered retirement savings plans established by individuals or the NIS.
 

The Commission does not regulate registered retirement savings plans established by individuals. Pension plan members can review the FSC’s website to ensure that the pension plan which has been established by their employer, is registered with the FSC.

An OPP or ORRSP is a pension plan which meets the following criteria:

• The employer has established a pension plan for employees of the company
• The employer makes contributions for employees (Contributory or non-contributory from the employee’s perspective)
• Even if the pension plan is established outside of Barbados, most members must be connected to Barbados as residents or citizens of Barbados

This also includes a pension plan that is established for persons employed outside of Barbados but there is a substantial connection with Barbados.

Single-Employer Pension Plan

A Single-Employer Pension Plan is a pension plan that has been established by one employer for the employees of that company. 

For example: ABC Company Limited Pension Plan is organized and administered to provide pension benefits for the employees of ABC Company Limited.

Multi-Unit Pension Plan

A Multi-Unit Pension Plan is a pension plan organized to provide pension benefits for the employees of two or more affiliated employers. Overall, with this type of plan, employers must have a relationship through the organisation’s structure e.g., branch, sister company etc.

For example: LIFE Holdings Limited Pension Plan is organized and administered to provide pension benefits for the employees of LIFE Holdings Limited., LIFE Distribution Ltd. and LIFE Bar and Bistro Ltd.

Multi-Employer Pension Plan

A Multi-Employer Pension Plan is a pension plan organized to provide pension benefits for the employees of two or more employers who are non-affiliated or have no relationship with each other. However, the pension plan was established to provide pension benefits for various employers.

There is no relationship among the participating employers of the multi-employer pension plan and the establisher of the pension plan.

Defined Benefit

A defined benefit (DB) is a pension benefit determined in advance by reference to various factors, including the level of earnings, length of service and a multiplier factor (determined by the actuary).

Defined Contribution

A Defined Contribution Pension Plan (DC) means a pension benefit is determined solely concerning accumulated contributions made by or for a member’s credit, together with the yield on such accumulated contributions, and that is determined on an individual account basis. The employee is responsible for choosing the investments offered to the plan, and a member will not know the amount of their ultimate pension benefit until they retire. Benefits at retirement depend on how much was contributed and how well the pension fund’s investments performed.

Hybrid/Combination

A hybrid or combination plan is a pension plan comprising of both DB and DC provisions. The pension plan rules govern the operation of each section (DB and DC). Figure 7 below provides an illustration of the types of pension benefits.

The FSC regulates pension plans by ensuring compliance with the Occupational Pension Benefits Act, monitoring their financial health, and overseeing the registrations, amendments, and wind-ups of pension plans to protect members' interests. 

A 'Member' is an employee entitled to benefits or a refund of contributions from the pension plan due to their employment. 

An 'Active Member' continues to accumulate pension benefits within the plan and is still employed by the employer of the pension plan. 

A 'Deferred Member' is someone who no longer accumulates benefits within the plan and is generally no longer employed by the employer of the pension plan. 

A 'Pensioner' refers to a member who is receiving pension benefits and is no longer employed by the employer of the pension plan. 

Based on the rules of your pension plan, you may be allowed to take a portion of your pension as a lump sum before or upon retirement. The limit within the Act is 25%, however, it must be stated within your plan rules for you to benefit from this provision.

Additional voluntary contributions are contributions made by a pension plan member that exceed the amount that they are required to contribute. 

Yes, you can retire early if you're within 10 years of the normal retirement age. For instance, if the normal age of your pension plan is 65, you can retire as early as 55. 

 Early retirement usually means a reduced annual pension, as you will receive payments over a longer period. However, the total pension amount remains the same. 

Depending on the terms of your pension plan, if you leave your job before retirement:

• your pension may be deferred,
• you may be able to place it into an individual registered retirement savings plan or 
• it may be rolled over into another retirement plan.