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FAQ

Ancoria Pension Plan

We are governed by the rules and regulations of European insurance legislation and supervised by the Insurance Companies Control Service of the Cyprus Ministry of Finance.

The Ancoria Pension Plan is governed by Class VII of the Law on Insurance and Reinsurance Services and Other Related Issues 38(I)/2016: Management of Group Pension Funds.

Yes, since the Ancoria Pension Plan is an approved pension plan for the purposes of Income Tax Law 118(I)/2002, both employers and their employees are eligible for tax relief on contributions paid into our occupational pension scheme.

If you’re an employer, you can deduct up to 10% of your contributing employees’ salaries from your taxable income.

For employees, up to 10% of your annual taxable income is tax-deductible, as long as the total amount of tax relief from pension contributions and insurance premiums doesn’t exceed 1/5 of your total taxable income.

Members can contribute to the Ancoria Pension Plan through direct deductions from their salaries. Members can also top up with lump sums throughout the year to maximise tax benefits or simply to put away more for retirement.

The unit price of a pension fund represents the “per unit” market value of the fund. It’s also the price at which pension plan members buy and sell units of the fund. Calculating unit price is simple. First, you add up all the fund’s net assets (both investments and cash) and subtract any liabilities. Then you divide that number by the total number of units held by pension plan members. The result is the unit price.

Unit prices of our pension funds are calculated and issued on a weekly basis, every Friday. Members buy and sell units in our pension funds at the same unit price (i.e. there is no bid-ask spread).

Yes, contributing members can transfer accumulated pension contributions from the pension scheme of a previous employer or from a provident fund, as long as the terms and conditions of their previous scheme or plan allows for transfer-outs.

Members can view their pension accounts, including contributions history and fund performance, by logging into Ancoria OnLine. Members can also switch between pension funds, change their investment policy and generate and print statements.

In exceptional cases, members can withdraw a portion of their pension contributions. However, withdrawals are only permitted for specific reasons (i.e. for medical costs for serious illness, education fees, or for purchasing, extending or renovating a primary residence). Employees that withdraw money from their pension accounts must repay it within an agreed time period through monthly deductions from their salary on top of their standard contributions.

The pension fund each member chooses should depend on their investor profile. Investor profiles are determined by investment horizons (expected retirement date) and risk tolerance (the level of risk members are able and willing to assume). Members may use our Investor Profiler to figure out what type of investor they are.

Members can invest their contributions in a single pension fund or a combination of pension funds. They can also switch between pension funds without any cost or penalty.

They can do this by themselves, via Ancoria OnLine, or they can have their employer notify us for them.

Members can change their contribution rate at no charge or penalty. They simply notify their employer, who will notify us of the change.

Members (or their legal heirs) will receive their pension benefits under the following circumstances, or benefit events:

  1. Termination of a member’s employment or permanent inability to work
  2. Member’s retirement
  3. Member’s death
  4. Termination of a member’s plan or of the Ancoria Pension Plan

We will pay immediately upon receipt of all necessary documents confirming the benefit event.

Members that change employers may:

  1. Receive a lump sum payment of their pension benefits
  2. Transfer their pension benefits to a new occupational pension plan (provided the new plan’s terms and conditions allow it)
  3. Reinvest their pension benefits in an individual Ancoria Life Policy