1.0 Objectives

To provide clear information of the retirement plan 

To create alignment on other benefits - savings plan matching contributions and encourage members to participate and build their savings plan for their retirement

 

2.0 Scope  

  

This policy shall apply to Infinit-O employees 

 

3.0 Provisions 

  

                3.1.      Eligibility 

3.1.1.  Employees shall be entitled to the benefit plans, provided they are on regular status

                3.2      Enrollment  

3.2.1  Employees are automatically enrolled in Fund A upon reaching their regular status 

3.2.2  Employees should complete the enrollment form and process in order to be part of Funds B and C.

            3.2.3  Form should be filled out, signed and endorsed to the P&T and F&A Teams in order to ensure a deduction is made from the employee’s salary

                         3.2.4  The general enrollment periods each year for Fund B: 

Enrollment periods	Applicable contributions
December	January - June
June	July - December
Regularization	Within 30 days from date of regularization
Management Initiated	Announced period for open enrollment

3.2.5  Enrollment form can be accessed in MyHR: Downloadable Documents > FORMS > INFINIT > Retirement Fund Enrollment Form

3.2.6  The Fund B and C coverage takes effect on the date the employee submitted    their filled out and signed enrollment form to the P&T and F&A Teams

 

                3.3      Deduction plan 

                             3.3.1     Every 5th and 20th pay out period 

                             3.3.2     Contributions to the savings plan are from the gross pay of the employees

              3.4      Use of Benefits 

                             3.4.1    Infinit-O’s Retirement and Savings plan are designed as follows: 

 

Fund A	One-half month salary for every year of service    Shall include the following:   Fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and cash equivalent of not more than five (5) days of service incentive leaves	In      accordance      with        the Retirement Pay Law (RA 7641). Contributions are paid by the  Company only
Fund B	Member's own voluntary contributions to the plan (Employee contributions)	Funds are generally invested in credit quality, conservative  investments
Fund C	Infinit-O contributions and/or Matching contributions (Employer Matching)	When an employee voluntarily contributes to Fund B, Infinit-O will match this contribution up to  5% of gross salary

 

3.4.2 The company appoints Unionbank to hold, manage and administer the retirement fund in accordance with the plan rules and regulations.  This may change as determined by the Retirement Trust Committee 

3.4.3 A member who has reached at least five (5) years creditable service at Infinit-O and in the retirement age (60 years old), shall be entitled to one hundred percent (100%) of Fund A.

3.4.4 A member shall always be entitled to one hundred percent (100%) of accumulated funds in Fund B, plus the applicable percentage in Fund C.

3.4.5 A member who has accumulated at least fifteen (15) years creditable service but, not in the retirement age, shall be entitled to seventy five percent (75%) of Fund A, subject to applicable taxes 

3.4.6 In the event of involuntary separation, separated employees are still entitled to an amount determined by the Labor Code or the benefits from Fund A, whichever is greater, but not entitled to both.  Involuntary separation includes:  

a.     labor-saving devices  

b.     redundancy  

c.     retrenchment program  

d.     closure or cessation of business units, and  

e.     any cause that is not the Member's doing 

 

       

3.4.7     Members get their accumulated value in Fund B in case dismissed due to the following:   

 

a.     with just cause in accordance with the Labor Code

b.     leaves the Company to avoid termination of service based on just cause 

c.     leaves the service in breach of the Company Handbook

d.     commits anything harmful to the company and 

e.     commits acts or omissions comparable to the above.

 

                             3.4.8     Other conditions: 

a.     Fund A will be forfeited if:

1.     member reached the retirement age (60 years old) and have not rendered at least 5 years of service or;

2.     member resigned before the retirement age (60 years old) and have not rendered at least 15 years of service.

b.     For Fund B, benefit plans cannot be forfeited because these are contributions made by the employee 

c.     For Fund C, members who didn't reach at least two (2) years from date of enrollment in Fund B, their funds will be forfeited 

3.4.9       Vesting credits for Fund C starts with the member’s date of  participation/enrollment  in Fund B

 

Years of Savings in Fund B	Vested Percentage
Less than 2 years	0%
2 but less than 4	10%
4 but less than 6	25%
6 but less than 8	50%
8 years and over	100%

  

3.4.10    Members become fully vested after fifteen (15) years of service in Fund A and eight (8) years from enrollment date in Fund B for Fund C.

3.4.11    Members are allowed to withdraw the money—the sum of their contributions once a year.  Once withdrawn, vesting period resets.

3.4.12    Members may transfer the account balance/retirement credits to another Participating Company (e.g. IOL to IOM)

 

4.0 Responsibility  

4.1  P&T Team is responsible for providing assistance related to the retirement benefit  programs for all eligible employees

4.2  P&T Team to include and update payroll reports per payroll cut off/period accordingly, for  enrollment and withdrawal requests, to be endorsed to F&A Team’s reference on  facilitation of deduction for confirmed enrollments and crediting for withdrawal requests.

4.3 The F&A Team is responsible for coordinating and securing retirement reporting from the Trust and Investment Manager which is the Unionbank 

 

4.4 The Retirement Trust Committee is responsible for all retirement and compensations decisions

5.0 Frequency  

       

             5.1       Semi-annual enrollment – June and December of every year

             5.2         Regularization period of employee – enrolled within 30 days upon regularization

             5.3  Management initiated enrollment periods – based on company-wide announcement

 

6.0 Distribution 

  

             6.1        Team members

             6.2        Supervisor 

             6.3        Manager 

             6.4        P&T Team

             6.5        F&A Team

             6.6        Execom

 

7.0 References

Enrollment fund forms