Group Pension Schemes

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:

  • Improve relations
  • Assist with the retention of staff
  • Make it easier to recruit new employees

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.

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The Importance Of Pension Training

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.

Tax Advantages

A Retirement Plan gives a company and its employees access to the unique taxation treatment of pension funding. The main features are summarised below:

  • The employer’s contributions can be offset against corporation tax as a business expense.
  • The member’s regular contributions will qualify for full income tax relief.
  • The pension contributions will be invested in a fund that grows tax-free.
  • On retirement, the members will be able to take a significant part of their accumulated benefits as a tax-free cash sum.

Why Orca?

A Group Retirement Plan through Orca offers the following facilities:

  • Contributions can be invested in a range of actively managed investment funds.
  • Regular contributions may be increased or decreased at any time.
  • Special single contributions may be made to any member’s individual account at any stage.
  • The entry and withdrawal of members are easily administered within the plan.
  • On joining the plan, a member receives information outlining the benefits of the plan and a notification of membership.
  • Each year, members receive a statement of benefits secured to date and current levels of contribution.

Online Member access

  • Each year the member will receive a review from their Orca representative
  • Member Presentations carried out annually or bi annually.
  • A Death in Service and Permanent Health Insurance scheme can be set up alongside the Company Pension Scheme.