A Group Retirement Plan is designed to enable companies to provide retirement benefits for their employees.
Establishing a good pension plan facility can bring considerable advantages to your Company and employees, as it can:
Such a contract would be approved under Chapter 11, Part 1 of the 1972 Finance Act, offering valuable tax advantages together with the flexibility required when the circumstances of the company or its employees change.
A Group Retirement Plan facilitates a company which may wish to vary the level of funding for different groups of employees. The Insurance Company and Orca Financial Ltd will keep records of all contributions paid in respect of each member and keeps separate account of any Additional Voluntary Contributions (AVC’s) paid by members. This minimises the administration required by the Human Resources of your company.
If you or one of your employees were to retire today, the State would pay a contributory old age pension which currently represents less than 28% of the national average wage. That will almost certainly represent a big drop in income. The National Pensions Policy Initiative recommends that State Pensions be increased over a period of years to bring the level up to 34%.
By the time you retire, the State Pension should be higher than it is today but given that today there are 5 people working for every one person in retirement and by 2050 that figure will be 2 to 1 there is concerns over the figure of the State pension
By providing your employees with a pension plan and the facility to invest Additional Voluntary Contributions (AVCs), members will receive an additional income for life throughout retirement.
A Retirement Plan gives a company and its employees access to the unique taxation treatment of pension funding. The main features are summarised below:
A Group Retirement Plan through Orca offers the following facilities: