supplementary retirement scheme 0127.pptx [read-only] · effective 1 january 2014, a retirement...

Supplementary Retirement SchemeIntuit Singapore

January 2014

© 2013 Towers Watson. All rights reserved. Supplementary Retirement Scheme 0127.pptx | 24 January 2014

Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

Planning for tomorrow is important

In many countries, state-sponsored retirement programs (such as the CPF) will be unable to meet the retirement needs of their members.

Employees’ financial security is top of mind for Intuit. Where possible, Intuit provides its employees programs (such as retirement

plans) to help strengthen their financial future, globally. Intuit believes that a shared responsibility with employees will ultimately

lead to the best possible outcomes. Intuit’s Total Rewards package, which is an important part of Intuit’s

investment in our employees, includes salaries, benefits, work-life initiatives, performance and recognition programs, and career development. The Intuit retirement program is a key component of your total rewards and is designed to help you create greater financial security.

towerswatson.com© 2013 Towers Watson. All rights reserved.

Supplementary Retirement Scheme 0127.pptx | 24 January 2014

2


The retirement situation in Singapore

“I don’t think many Singaporeans know that their CPF savings are not going to be enough to provide for their retirement.”

Prof Hui Wing Tat, Lee Kuan Yew School of Public Policy, NUSStraits Times, 21 March 2012



3

Inadequacy of CPF savings with its members’ needs: CPF funds are largely used for housing purchase. Extraordinary longevity of Singaporeans, and increasing. Healthcare expenditures are increasing at a rate higher than inflation.

Only 50% of Singaporeans expect they will have enough for their retirement needs. Yet, less than one employer in ten provides additional retirement benefits.


What is changing at Intuit?

Effective 1 January 2014, a retirement plan will be implemented. The vehicle to be used will be a Supplementary Retirement Scheme (SRS). Making contributions is encouraged but fully optional. If you take advantage of what the plan can offer, the new program will be

materially more generous than the former retention plan. The plan is tax efficient.



4


What is a Supplementary Retirement Scheme?

It is a supplementary scheme. It does not supplant the CPF but supplements it. Singaporeans and PR will continue to contribute to the CPF. You may elect not to contribute at all.

It is a defined contribution scheme. Your contributions and that of Intuit are invested at your discretion (based on

the investments available from OCBC). Accumulated contributions and return may be withdrawn at retirement.

It is a tax efficient scheme. Contribution are income tax exempt. Investments are tax exempt. At retirement, only half of the withdrawal is taxable. The withdrawal may be spread over several years to maximize the tax

advantage.



5


How much can I contribute?

All regular Intuit employees can participate in the plan. For each dollar you contribute, Intuit will contribute one dollar and

twenty five cents. The match will be limited so that the total contribution (yours and Intuit’s) will

not exceed SGD 12,750 in any calendar year. If you contribute SGD 472 in a month, you will get the maximum Intuit

match, or SGD 590. Non resident foreigners may contribute in excess of SGD 472 per

month if they so wish. There will be no Intuit match on the excess. The excess contributions shall not exceed SGD 1,417 per month.



6

Your monthly contribution 0 100 300 472

Intuit’s matching contribution 0 125 375 590

Total (SGD per year) 0 2,700 8,100 12,744


How does the account work?

If you don’t have a SRS account already, contact OCBC to open one. The documentation requirements are as follows:

– Singaporeans and PR need to present their NRIC– Malaysians need to present their passport.– Other foreigners need to present their passport and their EP.

If you do not have these documents, you can open the account directly at any of the branches. Inform HR of your SRS account number.

If you have an existing SRS account, please contact the Human Resources department.



7

The rules and regulations of the SRS have been set by the Ministry of Finance.


How are the contributions paid?

You need to decide the amount of monthly contribution you want to make. The elected amount of contribution will be directly deducted from your

paycheck each month. Intuit will make the corresponding matching contribution each month. The contribution amount can be changed at any time by sending an updated

form to human resources.– The form is available on the Singapore Benefits@Intuit site.– Changes will take effect the following month.

The total contributions will be paid to your SRS account.



8


How are the contributions invested?

The total contributions will be paid to your SRS account. You will need to decide where to invest the savings.

A wide range of options is available, from cash, money markets, bonds and equity.

You have total control of how you invest your funds. Financial charge as applicable will however be deducted from the account.

OCBC’s representatives are available at their branches to discuss your investment options.

The OCBC bankers will be available to discuss the investment options most suitable to you. They will assess your risk profile through a questionnaire. If circumstances change, please contact OCBC to review your investment

profile.



9


What are the tax advantages?

Contributions are tax exempt. Each dollar your contribute reduces your income tax by one dollar. Intuit’s contribution are also not taxable to you.

Investment returns are accumulated tax-free. Withdrawals can be made from the legal retirement age in force as the

first contribution is made (age 62 currently). 50% of the withdrawals is tax exempt. The rest is subject to income tax. Withdrawals may be spread over up to 10 years to maximize the tax

advantage.



10


When can I withdraw my savings?

SRS savings are normally set aside for retirement. They can nevertheless be accessed at any time, subject to tax and/or

penalty.



11

Event Tax Treatment Penalty

At retirement 50% tax free None

After 10 years of opening the account* 50% tax free None

In case of death 50% tax free None

On medical ground 50% tax free None

In case of bankruptcy No tax exemption None

Other cases No tax exemption 5%

* For foreigners who are not permanent residents.


Why participate in the SRS?

Matching contributions. Intuit matches a generous amount of your contributions.

Tax deductible contributions. The contributions you make and Intuit’s matching contributions are exempted from income tax.

Convenient payroll deductions. You decide how much of your pay you want to contribute to the plan and the deduction is taken out automatically each pay period.

Broad range of investment options. OCBC offers a variety of investment funds from which you can choose. You can select investment funds that meet your individual risk tolerance and needs.

Portable benefit. If you leave Intuit, you can continue contributing to your SRS, either on your own or within another company’s plan.



12


Contacts



13

Sankar BaskarIntuit Singapore Pte LtdAccounting Manager T +65 6572 1016M +65 9298 [email protected]

Rondy KrishOCBCPersonal Financial ConsultantM +65 9297 6549F +65 6643 [email protected]

supplementary retirement scheme 0127.pptx [read-only] · effective 1 january 2014, a retirement...

Documents