How RS section works
RS section helps you to save for retirement.
It also provides added security for you and your family, especially if the unexpected happens.
Q. How does it work?
A. It's very simple...
You Join
An AccountHolds the Core Contributions, Company Match and Extra Contributions. The Account is held in your name and is invested until you transfer, take your pension or die. is opened in your name and Core Contributions3%, 4% or 5% of your Benefit Salary. Core Contributions are the payments made to your Account by the Company on your behalf through Salary Exchange (or by you if you do not participate). Core contributions qualify for the Company Match. are made to your Account. Core Contributions are made through Salary Exchange unless you opt out. Salary Exchange means that your salary is reduced by an amount equal to your Core Contributions and the Company makes the Core Contributions on your behalf.
In addition, the CompanyThe BOC Group Limited. will contribute double the Core Contribution rate to your Account. This is known as the Company MatchThe Company's payment of double the Core Contributions into your Account..
Note: You cannot take a refund of contributions to RS section when you leave.
You Invest
The aim then is for you to invest your Account as effectively as possible to build up your retirement savings.
RS section gives you two options - BOC FreeChoice or BOC Lifestyle. You can download an
Investment Choices booklet,
which gives you more information about investing your savings.
You Retire
When you retire you use your RS section savings to buy an AnnuityA regular income (or pension) that you buy (normally from an insurance company) with your Account savings., which gives you a regular retirement income. You can also take some of your savings as a tax-free lump sum.
Your retirement income will depend on how much you have saved, how your investments perform and how much your Annuity costs to buy when you retire.
With RS section the thing to remember is that you are in control of your retirement plan because you decide:
- How much you save
- Whether you choose the BOC FreeChoice or BOC Lifestyle option
- When you receive your pension - from age 55 up to Normal Retirement AgeAge 65 unless a different age is specified in your employment contract.
Your choices make the difference to your retirement income - which will help to determine your quality of life in retirement.
...And finally
Remember, your involvement is not limited to the choices you make on the Application Form - it is important that you regularly check your Account to make sure you are happy with the progress of your retirement savings. The RS Plan TrusteeThe RS Plan Trustee is responsible for looking after the assets of the RS section on behalf of the beneficiaries. The Trustee Directors are currently appointed by the Company. helps you to do this by providing individual, personalised benefit statements for you every six months.
You can download
Your Guide to RS section for more information.
Note: You cannot take a refund of your contributions when you leave RS section.
From 1 June 2009 contributions will be made through Salary Exchange unless you opt out.
Download the forms and documents relating to RS section.
Need help working out how well off you'll be in retirement? See the Planning and education section for more information.