What Is Executive Pension Plan?
As the name suggests, an executive pension plan is a tax-advantaged savings plan, especially for executives, managers, key employees and Directors of the company. It is one of the best forms of pension provision, which make it possible to get the executives, tax-free income after retirement.
How does it work?
Executive pension plan is subject to the provisions of the Pensions Regulator. In the majority of cases, the employer pays into the plan, and in others, both the employer and the employee pay into the plan. Thus, a tax-efficient Fund for their employees. This is used for tax-free cash and a pension by the Executive after his retirement. Executive pension plans are similar to those of any other pension plans that you purchase the function as the money of pensions.
In general, Executive pension plans (EPPs), the management of the company for their personal advantage. But can be used by you can offer your preferred key employee with the same income that the investment. In these cases, the pension Fund held under a trust in which the trustees are responsible for the day-to-day administrative activities, such as the warranty, if the payment of premiums and the payment of benefits to maintain regularly. According to this scheme, each employee has the freedom to retire earlier or may be past the company retirement date.
The executive pension plan has enormous advantages for the employer, when it comes to the recruitment of potential employees. Employers can attract and motivate employees and to reward them with EPP systems based on their performance. Showers incentives performance for your employees can be a good idea. But still provides you with long-term beneficial for you to understand something, you can count on, even after years in active, which allows, which are its main assets.
Another advantage of the executive pension plan is that certain schemes be eligible for a top-up. With an increase of the life expectancy of the applicant, the complement of a plan can help you in the construction of a large Fund, the state ensures a high level of income post-retirement.
In addition, the employees will feel comfortable, since the majority of systems do not require your regular contribution. The company will contribute a certain sum of money that goes into your executive pension, the tire at the time of his retirement. This is the added value of the executive pension plans, which are more advantageous than other types of plans. With this plan in hand, each employee has a guaranteed tax-free returns for the rest of his life. It is also part of their main source of income, you can rely on any time.
If the date of retirement of each employee to choose their own year of his retirement. You can have either on the job past the company from the date of retirement. Whatever the choice, will the workers still be able to enjoy a worry-free income for the rest of his life. All of these benefits, a large number of executives to draw, in order that a pension plan that guarantees a long time of tax-free income.
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