VECTORPAI

We provide our clients with the most flexible record keeping and management system on the market, tailored to the needs of each client; which consolidates the work that we have been doing since 1999, focusing mainly on accounts such as Savings Funds, Pooled Savings Funds, Pensions, and any other account that needs this type of controls.

Our record keeping service offers all the administration and verification processes through the Internet, with the possibility of consulting the detailed operations that are carried out globally or individually in the account online.

HOW DOES IT WORK?

The Record Keeping System is developed to offer the management of information related to investment contracts such as, Savings Funds, Pension Funds, Pooled Savings Funds, without limiting the needs that other investments might require.

It is consulted through the Internet and is configurable, a feature that allows it to adapt to the specific needs of each contract.

WHAT DO WE OFFER?

  • Access through the Internet, 24 hours every day of the week, allowing consultations and downloads to spreadsheets.
  • You can consult different periods and segments from an organization jointly or separately, such as branches, areas or departments, to name a few.
  • It is configurable, which allows each client to receive a consultation system specific to their needs.
  • Personal access keys can be enabled for sub-account consultation.
  • Service executives are available to the client for any clarification needed.

MORAL PEOPLE

SAVINGS FUNDS

They are part of the Social Security plans of the companies and are granted to employees who have an indefinite contract in the companies, whereby an employee contributes with a certain percentage of their salary and the company contributes with the same amount.

The main objective is to obtain an additional income for the contributions of the company, having attractive returns, and maintaining the integrity of the capital invested.

In Vector, our goal is to support Savings Funds to determine the best investment vehicle, to offer competitive performance: and through our Individualization System (VectorPAI), we support companies with the individual administration of each employee's investments.

For the Company:

  • Las aportaciones de la empresa son deducibles de ISR, siempre y cuando no excedan el 13% del salario del trabajador y que no exceda 1.3 SMGV* elevado al año.
  • Ofrecer un esquema de ahorro a sus empleados, fortaleciendo el arraigo de personal a la empresa, así como elemento de atracción y retención de talento.
  • It favors the culture of savings among its employees.

For the Employee:

  • It represents an attractive saving way.
  • Invest in instruments exempt from Income Tax.
  • It can be used as a source of financing.
  • Does not charge IVA on loans.

POOLED SAVINGS FUND

A Pooled Savings fund helps companies to promote this type of financial savings and get involved in the administration, which has a positive effect on the work environment and does not represent any fixed cost. In addition to having control, fraud between cashiers managed by employees that affect the work environment and business results is avoided.

The objective of a Pooled Savings fund is to collect the savings of the workers and with that savings to be able to grant loans that benefit on the one hand to those who require resources in an agile way, with an interest rate lower than the IR of banks or lenders, and by another part also benefiting the participant with higher returns than those that could be achieved with individual savings instruments.

  • The employee’s contribution must be voluntary, for the amounts that they decide so when registering.
  • The corporate savings account is created as a safe, efficient and easy-to-use investment and savings instrument for all company employees.
  • Benefits not subject to the payment of Income Tax in their returns.

PENSION FUNDS

They are part of the social security plans that Mexican companies offer to their employees as a complement to social security plans, whose objective is to ensure that the participants who retire have an additional income than they could receive through the government pension or its afore.

In Vector, our objective is to support companies and employees to determine the best mix of instruments that could integrate the investments of the Pension Funds and ensure that in the long term the fund's returns exceed the expectations of the participants.

Types of Pension Funds:

  • Defined Contribution (DC)
  • Defined Contribution (DC)

Additionally, for Defined Contribution Pension Plans. We support companies in the implementation and individual administration of the resources of the participating employees, through our Individualization System (VectorPAI).

DEFINED CONTRIBUTION

They are Pension Plans in which the employee defines the amount to contribute for retirement, in this type of plans the company may or may not contribute to the employee's account.

If the company contributes, it defines the mechanisms for delivering said contributions based on the statutes in its Pension Plan.

The amount to be received in retirement (the benefit) is not defined since it depends on the contributions of the employee and the company, if any, in addition to the income they generate.

The company defines, through a committee, the rules of operation and operation of the fund, through its statutes.

For the Company:

  • It favors the rooting of personnel to the company, as well as an element to attract new talent.
  • Promotes the culture of anticipation for old age and retirement.
  • It favors the company that, by providing resources for the retirement of its employees, it improves their financial position on the balance sheet and is not affected via cash flows in the future.

For the Employee:

  • Represents an additional income that helps you maintain the quality of life at 65 or at the time of your retirement.
  • The yield is exempt from Income Tax, which represents a 0.60% additional annual return.
  • The Technical Committee of the Pension Fund is made out of employees of the company, and they are the ones who make the investment decisions.

DEFINED BENEFIT

They are Pension Plans established by the company with the objective of accumulating enough resources to grant a defined pension to its employees. The amounts to be contributed are calculated based on the salary and the age of the worker, in this way it can be estimated how much his pension will amount to at the time of retirement.

The contributions to these plans are defined with the help of an actuarial advisor.

Contributions are not directly related to one or more specific employees, rather they are available resources that help the company cope with employee retirement or pension, without affecting its cash flow.

Unlike the Defined Contribution plans, the amount to be received in retirement (the benefit) is defined and calculated based on the salary and time worked in the company.

The company defines, through a committee, the rules of operation and performing of the fund.

For the Company:

  • It favors the rooting of personnel to the company, as well as an element to attract new talent.
  • Promotes the culture of anticipation for old age and retirement.
  • It favors the company that, by providing resources for the retirement of its employees, it improves their financial position on the balance sheet and is not affected via cash flows in the future.

Personal Retirement Plan

The Personal Retirement Plan (PPR) is an individual investment account that aims to receive and manage resources for retirement.

Investment in this type of product is recommended because:

  • The pension and retirement system of Afores or IMSS may be insufficient to maintain the level of income at the time of your retirement.
  • The characteristics of the PPR are detailed in the Income Tax Law (LISR) Article 151, section V.

PPR advantages:

  • Contributions to this product are deductible from the Income Tax.
  • Invest in instruments exempt from Income Tax which represents an additional 1.04% annual return
  • The returns are not cumulative to your income in your annual return.
  • At the time of retirement, the Income Tax Rate may be different from the current one and if your income is low, the Income Tax Rate could be lower.
  • You can apply an exempt amount of 90 UMAs high per year and thus reduce your taxable base, reducing the tax to be paid on these resources. This amount can rise to $2,773,980.

The contribution that can be made to a PPR, vary each year and are established by two criteria, such as % of your income or a maximum cap:

This one should be lower than:

  • 10% of the holder's annual income, or
  • The equivalent of 5 Units of Measures and UMA's update, elevated per year

For 2019 the cap is $154.110

PPR accounts can invest in:

  • Capital Market
  • Money Market
  • Mutual Funds

The strategy recommended in this type of accounts is long-term and instruments that by their nature can offer attractive returns over time, such as:

  • Investments in shares of the Mexican Stock Exchange
  • Long-term debt instruments

It is advisable to distribute your investment based on your age, risk tolerance and your expectation of retirement age.

Consult your investment advisor to guide you on the investment possibilities that best suit your needs.