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Self-Administered Pension
Schemes
Design, Administration and Trusteeship
Boal & Co (Pensions) Ltd, our pensions practice, specialises
in the provision, administration and trusteeship of Isle of Man self-administered
pension solutions for companies, partnerships and individuals. For
these clients, we are able to construct and administer bespoke pension
arrangements, bringing to bear the full benefits of our independence
and impartiality (we do not advise upon or sell local insured pension
policies) and our relevant professional expertise. Boal & Co
(Pensions) is registered as a professional schemes administrator
with the Insurance & Pensions Authority (IPA).
Boal & Co -
registered with IPA as professional Schemes Administrator
Boal & Co
- registered with IPA as professional Schemes Administrator
Boal & Co (Pensions)
Ltd is registered with the Isle of Man Government Insurance
and Pensions Authority (IPA) as a professional Registered Schemes
Administrator,
effective 9th April 2003. Under section 36 of The Retirement
Benefits Schemes Act 2000, pension scheme administrators must be
registered
by the IPA.
Scheme Administration
We provide a full range
of administrative services to larger company pension schemes (200+
members) in the Isle of Man. Some of these schemes also include members
based in Jersey and Guernsey, where we are able to advise on the
corresponding benefit provisions.
Our range of clients
includes schemes that are:
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- contracted-out
- not contracted-out
- money purchase (“defined contribution”)
- final salary (“defined benefit”).
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We provide a complete
administrative solution, including:
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- calculation of monthly contributions
- allocation of contributions to individual member accounts
- preparation of annual benefit statements and future pension projections
- preparation of unaudited scheme accounts
- attendance at trustee meetings
- ongoing advice on scheme development, including effect of future
legislative changes.
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SSAS
(Small Self-Administered Schemes)
For Isle of Man residents
with substantial UK pension funds (typically £200,000 plus), small
self-administered pensions schemes can provide valuable taxation
advantages and estate planning solutions.
In the UK, annuities
are generally unattractive, given poor annuity rates and the potential
loss of substantial funds on early death. In contrast for Isle
of Man SSASs there is no requirement for purchase of an
annuity, so funds can continue to be invested in equity and other
real assets
for long-term growth. “A-day” (April 2006) has extended
the range of retirement options to include “alternatively secured
pensions”, but these have potential adverse UK Inheritance
Tax (IHT) implications.
For Isle of Man SSASs
there is no requirement for purchase of an annuity, so funds can
continue to be invested in equity and other real assets for long-term
growth.
The residual fund is
available for passing down to the next generation on death
and IoM pension scheme assets are not UK-status.
An Isle of Man pension
solution can also ensure that pensions eventually payable are subject
only to (low) Isle of Man taxation, rather than be subject to irrecoverable
higher UK taxation.
Fortunately, Isle
of Man approved pension arrangements can be constructed to receive
such UK benefits ahead of retirement. Subject to appropriate registration,
it is possible to transfer pension benefits between UK and Isle of
Man pension schemes. After A-day, it can also be possible (depending
upon indiviudual circumstances) to transfer certain pensions even
though they have commenced payment.
Boal & Co provide
a complete range of Isle of Man SSAS services, including scheme
establishment and documentation, application for approval, administration
of transfers,
actuarial advice and pensioneer trusteeship.
Scheme
Establishment and Design
Small, medium and larger
companies all have pension needs, whether it be the needs of
the many (eg a scheme to provide pensions for 200 employees) or
of
the few (eg the different requirements of owner/directors). Schemes
can be devised to suit the different needs of different employers.
Often, a simple 'defined
contribution' structure is the ideal solution, permitting different
contribution levels according to each membership class. Final
salary schemes are a possible - albeit more complicated - alternative.
Boal & Co have
an excellent knowledge of the practice of Isle of Man companies
in relation to pensions provision.We are expertly placed to advise
Isle
of Man employers on all aspects of pension scheme design and
establishment.
International
Schemes
For international companies,
we are able to establish "superannuation funds" approved
under the Isle of Man's international pensions legislation. These
schemes can be an efficient means of centralising pension arrangements
for overseas staff.
The Isle of Man Government
has undertaken a major pensions initiative and, through the Retirement
Benefits Schemes Act 2000, has established a dedicated regulated
retirement scheme framework for international pension schemes. Such
schemes come under the responsibility of the Isle of Man Insurance
and Pensions Authority (IPA) which oversees also the Island’s successful
insurance industry.
Boal & Co provide
a complete range of services for international pension schemes,
including Scheme establishment, design, documentation, taxation
approval, trusteeship
and all aspects of Scheme administration.
SIPPs
for self-employed individuals and partners
For higher earning
individuals in non-pensionable employment, normal packaged pension
products are restricted in choice. In these situations, a self
administered individual pension arrangement can prove very attractive,
not least
in terms of cost: quite simply, the normal %-based commissions
(and associated charges) of insurance products are eliminated and
the
savings - particularly for higher earners - are very substantial.
For partnerships, we
are able to design a group self-administered pension scheme
and offer even more potential cost savings.
Independent
Trustee
Under the IOM Retirement
Benefits Schemes Act 2000, all schemes are required to have at
least one trustee who is "independent" of the employer. Our experience
of all aspects of pension schemes – design, administration, investment,
actuarial – means that we are expertly positioned to advise trustees
of Isle of Man pension schemes and to act as independent trustee.
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