Deposit Administration Agreement
The Immediate Participation Guarantee (PIG) contract provided the pension financing plan, in which the employer regularly contributes to a fund managed by the insurance company and the insurer receives deposits and invests. The plan is a form of deposit management. the employer regularly contributes to a fund managed by the insurance company. The insurer receives deposits and invests. A GIP can be structured as a fiduciary plan because the insurer does not guarantee the security of investments or their return. However, some IPGs can guarantee the amount of the fund`s capital and a minimum return. If you are considering a home loan, it is essential for you to understand the conditions under which your bank is taxing the loan. You have to understand every clause on the loan agreement, otherwise you will end up choosing a lender that calculates high interest rates or difficult conditions. To avoid this, simply register on our website and understand the meaning of financial terms with the financial dictionary. Second, bank deposit contracts allow withdrawals in certain circumstances before the expiry of the contract (for example.B. when the owner retires, is disabled or experiencing some kind of hardness, or when the sponsor of the pension plan who buys the bank deposit contract is experiencing some kind of financial difficulties). The GIP is different from other deposit guarantee contracts and is attractive to employers because employers have more flexibility when a worker retires.
The employer has the option of paying old age pensions directly from the IPG fund instead of locking itself into a pension acquired by the insurer. This gives the employer control over the funds for a longer period of time. The employer may also receive a pension for the retired worker. Bank deposit contracts are similar to guaranteed investment contracts (CICs), except that they are issued by banks and not by insurance companies. The issuer (the bank) guarantees the investor`s return on investment and pays a fixed or variable interest rate until the end of the contract. In the meantime, the bank is striving to get a higher return on the investment than it is willing to pay to the investor. In general, the return on a bank deposit contract increases with the length and size of the investment. Pension fund agreement in which the sponsor of the fund deposits an asset (for example. B cash) on an insurance account. After the beneficiary leaves the plan, the insurance company withdraws sufficient resources from the account as a lump sum payment for an immediate pension.
The GIC provider confirms that the GIC account was opened in the name of the issuer in its books (on the instruction of the issuer) and agrees to accept all funds transferred from time to time to the GIC account, subject to and under the terms of this agreement, the bank account agreement, to the GIC account. , the cash management agreement and the royalty obligation.