What If I Become Disabled and Have to Stop Working?

You may qualify for a Disability Pension if you meet the service and employment requirements. See the SPD booklet for more information.

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Pension Fund

The Pension Plan is designed to help you better prepare for your future financial security once you stop working. Employer contributions and earnings on investments (if any) fund the Plan. You are not required to contribute to the Plan but may do so through the Voluntary Employee Contribution Account.

Plan Highlights

Below are the Pension Plan highlights. Complete details are available in the Summary Plan Description.

Eligibility and Participation

You’re in after 20 weeks. You need to work 20 weeks in covered employment to become a Pension Plan participant. Once you do, your Plan participation automatically begins retroactive to the January 1 or July 1 that immediately precedes the date you complete 20 weeks of work in covered employment.

Your Benefit Amount

Five factors determine your pension amount:

  • The pension credit rate in effect when you retire (currently 1.10% per pension credit earned after the 31st of December 2019)
  • Your final average salary (the average of your last 10 years during which you earned pension credits)
  • The type of pension you apply for
  • Your age and the age of your spouse, if you elect a 50% Joint and Survivor Benefit

The monthly amount of your Regular Pension benefit is calculated by multiplying the average pension credit rate of your final average salary by your total pension credits and dividing the result by 12.

Pension Credits

Pension credits are used to determine your eligibility for a pension and the amount of your benefit. The number of pension credits you have is generally based on your weeks of covered employment. You earn 2.5% of a pension credit for each weekly pay period that you work in covered employment. This means that by the time you’ve worked 40 weeks in a year, you’ve earned one full pension credit for that year (which is the most you can earn in a year).

Vesting Service

You are fully vested after you have earned at least 10 pension credits. Being vested means you have earned an irrevocable right to your benefit and it cannot be cancelled or taken away. As long as you have at least 10 pension credits, you will receive a pension at age 65, even if you stop working in the hotel industry before you retire.
Types of Pensions

There are four pension types available. Each has its own eligibility requirements and level of benefits:

  • Regular
  • Early Retirement
  • Disability
  • Pro-Rata
Forms of Payment

How your pension is paid depends on whether you elect the standard or optional form of payment:

  • Standard: 60-month Period Certain. You receive a fixed monthly benefit for life. If you die after you retire but before you receive 60 monthly payments, your designated beneficiary will continue to receive monthly benefit payments until a total of 60 monthly payments are made. The total of 60 payments includes all payments made to you and your beneficiary.
  • Optional: 50% Joint and Survivor. You receive a reduced monthly income for life. Upon your death, your surviving spouse will receive 50% of the reduced monthly benefit amount throughout his or her lifetime. The exact amount of the reduction depends on your age and your spouse’s age when you retire, as well as a number of other factors. To select this option, you must have been married for at least 12 consecutive months before you apply for a pension.


Plan Information

Plan Name Bahamas Hotel Industry Management Pension Plan
Plan Year January 1 through December 31
Type of Plan This is a Defined Benefit Plan. Participants earn a definite amount per mouth for each pension credit. Once benefits start, they are paid over your lifetime.
Plan Administrator The Pension Plan is established and administered by an independent Board of Trustees. The Board of Trustees acts on behalf of you and your fellow Plan participants to manage all aspects of the Fund’s operations.