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Retirement Fund

Secure the future of your key employees with our Retirement Fund.

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Overview

Retirement Fund is an employee plan set up by a company to fund the retirement/separation benefit payments of its qualified employees at a future date. It can be set up using either or a combination of the following plans:

  • Fixed Benefit Plan/Defined Benefit Plan –A Retirement plan where only the employer is required to contribute to the Fund and the benefits to be received by the employees are defined.
  • Contributory Benefit Plan/ Defined Contribution – A Retirement plan where both the company or their employees or both make fixed contributions. The funds accumulated are eventually distributed to separated/retired/incapacitated employees.

How we can help?

With our dedicated Account Officers & Institutional Sales Officers, we can assist you in setting up, maintaining and managing a retirement fund for your company.

Already have an established plan? We can make your plan more attractive through tax benefits and incentives under a qualified retirement plan.

Minimum investment amount P5,000,000
Minimum employee headcount 10

Benefits of a Retirement Fund

Tax deduction and tax exemption

Relief from one time retirement payment

Maximize the earning potential of the fund

Improve employee retention

Build a reputable corporate image

What becomes a Retirement Plan?

  • It must be a definite written program;
  • It must be a permanent and continuing program unless terminated by virtue of a valid business reason;
  • Must cover at least 70% of all officials and employees;
  • It must be non-discriminatory;
  • It must provide for non-forfeitable rights;
  • It must be non-diversionary;
  • It must be administered by a Trust.

How to Set up your Retirement Fund

  1. Establish Retirement Plan Rules & Regulations through the Retirement Committee
  2. Perform Actuarial Valuation through an independent actuary
  3. Appoint Security Bank as your Trustee or Investment Manager

Documents Required

to open the Retirement Fund account with SBC Trust

From the Company From SBC Trust
  1. Articles of Incorporation/ Partnership 
  2. SEC Registration
  3. Retirement Plan Rules & Regulations
  4. Actuarial Valuation Report
  5. BIR Form 17.60
  6. Government Issued IDs of Authorized Signatory/s
  7. Secretary’s Certificate
  1. Trust Agreement
  2. Account Opening Forms 
  3. Investment Guidelines
  4. Client Suitability Assessment (CSA)
  5. Risk Disclosure Statement

What we can do for you

Fund Setup

Design & build your fund’s investment portfolio

Performance Monitoring

Regularly review & update your investment’s performance

Fund Disbursement

Settle retirement pay of retiring members

Fund Security

Accounting & Safekeeping of your fund

Interested in a Retirement Fund?

Click here to get in touch
Investment Options

Depending on the risk profile and preference of the client, we will be manging the funds using the following Portfolio Models:

100% Fixed Income

UITF

Investments

Risk Profile
SB Money Market Fund
  • Savings Account
  • Time Deposits
 Conservative
SB Peso Bond Fund
  • Savings Account
  • Time Deposits
  • Government Securities
  • Corporate Bonds
 Moderate

80% Fixed Income, 20% Equity

UITF

Investments

Risk Profile
SB Money Market Fund
SB Peso Equity Fund
SB High Dividend Peso Equity Fund
SB Peso Equity Index Fund
SB Peso Bond Fund
  • Savings Account
  • Time Deposits
  • Government Securities
  • Corporate Bonds
  • Philippine Stocks
 Moderate

70% Fixed Income, 30% Equity

UITF

Investments

Risk Profile
SB Money Market Fund
SB Peso Equity Fund
SB High Dividend Peso Equity Fund
SB Peso Equity Index Fund
SB Peso Bond Fund
  • Savings Account
  • Time Deposits
  • Government Securities
  • Corporate Bonds
  • Philippine Stocks
 Moderate

60% Fixed Income, 40% Equity

UITF

Investments

Risk Profile
SB Money Market Fund
SB Peso Equity Fund
SB High Dividend Peso Equity Fund
SB Peso Equity Index Fund
SB Peso Bond Fund
  • Savings Account
  • Time Deposits
  • Government Securities
  • Corporate Bonds
  • Philippine Stocks
 Aggresive
Laws

Particulars

Without a Retirement Plan

With a Retirement Plan
Law RA No. 7641 mandates the payment of retirement benefits to qualified private sector employees in the absence of any retirement plan established by the employer To encourage the corporations to establish a qualified retirement plan, R.A. 4917 provides for tax benefits and incentives
Age and No. of Years of Service to be entitled to Retirement Pay 60 years old and 5 years of continuous service to the Company Defined in the Company’s Plan Rules which may come in the following retirement age and service:

  • Normal Separation – at least 5 or 10 years of continuous service
  • Early Retirement – 50 years old and at least 10 years of continuous service
  • Normal Retirement – 60 years old and at least 10 years of continuous service
  • Compulsary Retirement – 65 years old and at least 10 years of continuous service
Tax-exemption on Payment to Employee Death, sickness, physical disability or for any cause beyond the control of the said official or employee Must be at least 50 years old and 10 years of continuous service to the Company. Death, sickness, physical disability or for any cause beyond the control of the said official or employee
Tax-exemption on Investments of the Retirement Fund None Exempt from the 20% Final Withholding taxes (with BIR Tax-exempt Certification)
Retirement Pay At least one half (1/2) month salary for every year of service. The one-half (1/2) month salary is comprised of 15 days salary, 1/12 of the 13th month pay and 5 days service incentive leave or a total of 22.5 days for every year of service Defined in the Company’s Plan Rules which can pay from a minimum of 1 month for every year of service to as much as 3 months for every year of service

DISCLAIMER:

Under Republic Act No. 4917, the Bureau of Internal Revenue (BIR) determines the qualifications for the tax exemption of the company’s retirement plan.

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