Group Pension Plans

Company Pension plans can be an excellent benefit to offer employees.

There are many types of Group Pension Plans available to the International market. They cater for companies as small as four people with no upper limit.

The most common schemes are provided by large financial institutions based in the Isle of Man, Guernsey and Luxembourg, your employees will benefit from the high level of investor protection offered to in these regions.

Setting up group schemes is not as costly or as daunting as it used to be. In fact your company has very little administration to do as everything is administered by the provider. You will have online administer access and your employees will have online access to there account values.

How the scheme is setup will depend on your requirements, and we will assist you every step of the way. Our role is to ensure you choose the best type of group pension plan for you and your employees. There are two main types or structure? Bundled and Unbundled.

Bundled versus unbundled: Two market options are available when it comes to obtaining the required services. Normally smaller companies would use a bundled structure as this is more cost effective. Larger companies who can benefit from reduced costs due to their scale, would usually use an unbundled structure.

Bundled: Using a single provider that offers administration, investment and insured or trust services (whichever is required), such services may be “bundled” together under one product. Under a bundled approach, the administration and investment services are offered by the chosen provider, either using its own resources or through a third party administrator (TPA). Bundled plans are typically offered by insurance companies or investment managers with a TPA.

Unbundled: Where separate specialist services are utilized on an “unbundled” basis, typically there are separate contracts for administration and investments. Trustees (if applicable) can independently choose providers (“best of breed”). TPA fees are generally a fixed scheme charge plus per capita and/or per transaction charge – usually set to reflect the size and complexity of the scheme. TPAs are first and foremost service providers (contrast this with a bundled provider whose business model depends on maximizing levels of premium income or funds under management).

Request a Free Consultation, we would be very happy to chat through any questions you may have?