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Input
and Withdrawal Credits:
Monies
put into the trust fund earn a
profit. In order to justly
and fairly divide the profits, each
participant will have one unit of credit for every
$1,000 he or she has in the fund.
Each year the total
investment profits to the
trust will be
divided by the total number of credits.
Each person will receive that amount times the
number of credits he or she has.
Those retired will receive their share
of the profits in the form of monthly
payments. Those not yet
retired will have their share of
the profits added to their investment
fund.
A
participant's credits are based on the amount
of money he (or she) puts into the fund plus
the additional monies added to
his account from profits. Here's a very simplified
example:
Suppose
a person starts an account with
$10,000. A the end of
the year he has ten retirement
credits. Suppose at the
end of the year, his share of the
trust fund profits was $500
and he personally added another $500
to his account. For the
second year he would receive eleven
credits.
The
details and the intricacies of these
calculations will be designed by those
competent in accounting and set up in
a fashion that is fair to all parties.
Receiving
Withdrawal Credits from Another
Beneficiary:
Upon
the passing away of the original account holder,
his/her investment funds are passed on
to whomever that account holder has
designated in his/her previously
written instructions regarding
the account. At the time
of transfer, ninety-seven percent of the
money put into the account is
transferred into the new account
holder's account and three percent is transferred to the
trust's general
fund. (That three
percent is also invested and the
profits are used to cover Management
Costs
and other related expenses. )
As
an example, suppose an account
owner has $100,000 in the account at
the time of his passing. Of that money,
a starting account worth $97,000 is
transferred to the name of the new
account holder, and $3,000 is
transferred into the trust's general
account. The new account
holder would earn ninety-seven retirement credits
per year on that money.
Any additional monies added to this
second-generation account are
credited to the account holder at
the same rate as his predecessor,
one credit per for every one
thousand dollars in the
account. A decision will also
need to be made regarding credits
for money in amounts less that
$1,000 and for investment times
times less than a full year.
Saying
Goodbye to the Tax man and
minimizing Legal Piggly-wiggly:
Trusts,
set up as non-profit
organizations, can receive
monies from corporations. If,
for example, a company's labor
organization (such as a union)
has a non-profit trust
set up for the benefit of retiring
employees, the corporation can give
money to that trust as a tax
deductible gift. The
employees never receive the money
and thus it's not
taxable. The employees
receive retirement credits and pay
taxes after retirement and then only
on the money he/she actually
receives. This
eliminates the government rules and
fees and penalties and all the rest
of the bureaucratic gobbledy-gook.
Withdrawing
Monies that Have Been Put into the Fund:
The
trust is designed to be a trust in perpetuity
for the beneficiary, for his family,
and for his heirs, and, as such, the
money (the original capital) put into the trust is not withdrawable.
However, a policy needs to be set up for those
who have an urgent need to withdraw the money
that they, themselves, have put into the trust. Here's
one possible way to approach this: A person can only
withdraw the money that he/she has
put into
the fund (or that has been added to
the trust by the person's employer
with him/her as the beneficiary) and the
interest earned on that money. A
minimum balance of twenty percent or
$10, 000, whichever is greater
must be left in the trust from the monies
he/she (or the employer) has put in. Monies
previously put into the trust by someone else for which a person
has retirement credits are not withdrawable
and are not creditable as part of the
residual.
A
set of guidelines needs to be set up
and the Arbitrators
branch of the trust management team shall
be responsible for determining how the
withdrawal policies are
administered.
By a vote
called for by any member of any of
the other three branches, (Rule-Makes,
Managers, and Reality-Checkers
) the arbitrator's decisions may be
vetoed, and/or altered.
Covering
Management
Costs and Paying Other Related
Expenses:
Initially,
each trust beneficiary will be
required to pay a portion of the money
required for administering the
trust. This cost will
eventually be replaced by money from
the
earnings from the general fund's
portion of the investments.
(Another possibility is that the
company donating funds to the
retirement trust may choose to also
add sufficient money to cover the cost
administering the trust during its
beginning phase. ) As sufficient
funds become available, members of the
four branches of the trust shall
be paid a reasonable compensation for
their work. The amount of
moneies paid out in this manner are to
be determined by and independent
committee designated by the beneficiaries.
Members of the four branches of the
trust or anybody who has close ties to
members of the four
branches cannot be on this
committee. All recommendations
for monies paid to the people in the
four branches must be approved by a majority
vote of the beneficiaries.
Birthing
New Trusts
...
Birthing
New Trusts from the Womb of
Existing Trusts:
Funds in the trust's general
fund in excess of those needed for trust administration costs are
held in a lending and/or grant fund.
The fund will be used to
assist other groups or individuals in
setting up their
own retirement trusts.
The N.V.P. Team
will coordinate this aspect of the
project and will establish a fund
that can be used for this purpose.
Controlling
and Using the Trust's Assets:
Rather
than turning one's retirement funds
over to some, big,
profit-oriented,
self-interest-focused corporation,
each retirement trust will be under
the control of the
beneficiaries. The
beneficiaries elect the people who
will be members of the four branches of
the trust's control team.
Joint,
Retirement-fund Partners:
Two
people who are marriage
partners, life partners, and/or
domestic partners can become joint,
retirement-fund partners.
Prior to retirement age, each partner simply designates
the other as the recipient of his/her
withdrawal credits and informs the
trust of his/her status. For those
who declare themselves to be retirement-fund
partners, the three percent transfer
fee is
delayed until the passing of the
second partner.
Letter
of the Law and It's Intent:
All
people placing funds into the trust
(and those having monies put is with
themselves as the beneficiary) must agree to all the trust's
rules which are not appealable to
outside litigation. All
participants must agree to all the
rules, and sign their consent to
participate with a notarized
signature.
All
account holders (people who place
money into the trust) must, prior to
putting monies onto the trust, agree that
all disputes that are not
resolved within the above parameters,
must be resolved by arbitration
according to the trust's pre-established
rules of arbitration. (A
suggested set of arbitration rules will be added to
this site at a later time.)
The
trust's rules shall
have two equally powerful
parts -- the letter of
those rules and the intention
behind that stated rules.
A violation of a rule's
intention shall be equal to a
violation of the letter of that rule.
In any questionable practice, the Arbitrators
shall resolve the disputes at their
discretion. The Arbitrators'
decisions are appealable to a combined
decision of the other three
branches of the trust, (Rule-Makes,
Managers, and Reality-Checkers
) The three-branch decisions
are final and unappealable.
All
rules must be written in plain,
easy-to-understand
language. Any attempt to
hide a rule under complicated sentence
structure or by unwritten implication
is prohibited. Any time a
rule is found to be confusing or is
being misinterpreted by the
beneficiaries, the wording must be
altered, and both its meaning and
its intention must be made
clear.
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