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Old 19th May 2015, 08:09
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Dropp the Pilot
 
Join Date: Aug 1998
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Hmmm. Think I disagree with you there. The Provident A Fund is by no means a safety net of any kind, it is a book-keeping dodge by the company very cleverly presented as some kind of perk. They will owe you your EOSB in full when you leave. That is just the law, not a kindness. Some clever spark decided to lay off that future cost incrementally, a month at a time, to avoid the shock to the company bottom line when you depart and your EOSB comes due. Some even cleverer spark decided to present this accounting dodge to you as a gift from the company.

The B fund serves no purpose other than to tie up your money with your job.

Both the A and the B fund options are so conservative and generic they offer no true investment options for someone willing to take risk proportional to their age. Worse, unless your future is planned in one of four currencies your retirement plans are totally at the mercy of your intended home country's exchange rate.

The C fund is a perk for the fund managers, NOT the pilots. The built-in management fees are laughably high until you drag out a calculator that shows you will leave EK with about $150,000 of your money left behind in someone's Gucci wallet, then the laughing stops. You can avoid this theft of your family's future in only one way: under no circumstances whatsoever use the C fund.
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