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Barita IRS

Individual Retirement Saving Scheme

 

nest-egg

 Individual Retirement Scheme Fact Sheet

The Barita Individual Retirement Scheme is an approved retirement plan under the Income Tax Act and the Pensions (Superannuation Funds and Retirement Schemes) Act 2004.

The Barita IRS which offers TAX-DEDUCTIBLE benefits, is available to Jamaican residents only, and helps individuals to invest over the long term to secure their retirement.

The plan is managed by Barita Investments Limited who administers and invests the assets of the plan.

Who can invest in the Barita IRS?

If you are 18 to 63 years old and self-employed, or employed without an approved pension plan, you can create a retirement account with Barita.

Can I invest in two or more retirement plans at the same time?

No, current legislation limits participation, however active members can transfer their benefits from one approved Superannuation fund or retirement scheme to another.

How does it work?

  • You can contribute up to 20% of your annual income. The scheme also requires a minimum of $1,000 per month or $10,000 per annum. Please note that if at any time you stop contributing, your funds continue to grow as the unit values increase. If the value of your account is however insufficient to cover administrative charges, your account will be closed.
  • Contributions can be made through salary deductions, pre-authorized payments or directly at any of Barita's locations. (Please note that the Pensions Act requires that you contribute to the Plan at least once per year).
  • Your contributions are invested by Barita in a unitized fund, which is professionally managed to maximize the greatest returns to the investor.

Are the funds safe?

Assets in the fund are held in a separate account and monitored by Trustees. This means that investors funds are 100% secure and segregated from Barita.

How are the funds invested?

At the signing of the contract, a determination is made as to the risk appetite of each Member. Members then have the option to invest in one of three funds, or a combination of all three. The Fund is broken into three categories as follows:

  • Conservative: 100% Fixed Income Securities
  • Moderate: 50% Fixed Income Securities and 50% Equities
  • Aggressive: 100% Equities

Why should you invest in the Barita IRS?

  • Contributions in the fund are tax deductible from your salary and the earnings of the plan do not attract withholding tax.
  • The fund will be managed by professional managers who will seek to achieve the highest possible returns for Members.
  • Barita Investments Limited has a solid reputation for safety, integrity, and prudent money management.

What happens when I retire?

Normal retirement age is 60-65 years, early retirement is within 10 years of your normal retirement date and late retirement is 5 years beyond your normal retirement date. Upon retirement you can:

  • Take up to 25% of the plan value as a lump sum cash payment.
  • The balance must then be used to purchase a payout Annuity or another approved income plan.

Can I make withdrawals from this account?

No, similar to a superannuation fund, you must satisfy the requirements for normal retirement (60-65 years), late retirement(5 years beyond your normal retirement date), early retirement (within 10 years of your normal retirement date) or disability to access your benefit.

What happens if I die before retirement?

In the event of your death, your listed beneficiary or beneficiaries will receive the full amount of your account less any tax applicable, if any. If your listed beneficiary is a child, you should include provisions concerning who is legally able to manage the money on the child's behalf.

What happens if I become disabled?

The trustees acting on the advice of a duly qualified registered medical practitioner shall determine the permanency of the disability and permit the purchase of an annuity in trust for the disabled person.

How do I open a Barita IRS?

  • Complete and sign an IRS Application Form
  • Proof of Income
  • Tax Registration Number (TRN)
  • Valid ID
  • Two References
  • Proof of Address
  • Name of Beneficiary

For more information on how to secure your future with the Barita IRS, please contact us.