International Pension Plans
International Pension Plans (IPPs) are the ideal vehicle for employers to enable medium to long-term savings for globally mobile employees or for local employees where domestic provision is unavailable or insufficient due to economic or political reasons. IPPs have a number of advantages and benefits over the traditional option of housing the long-term savings benefits for globally mobile employees in home or host country domestic plans. These advantages are:
- IPPs ensure that globally mobile employees have access to retirement or long-term savings benefits commensurate with their home country benefits;
- benefits do not fragment as an employee moves around from country to country due to one central vehicle receiving contributions;
- single scheme contract for employers for global benefit programs;
- empowers employees to take control of their long-term savings with a single point of contact;
- global 24/7 online access to review and monitor their investments;
- flexible design and options on leaving employment or retirement.
IPPs can also be established for:
- local employees where there is a lack of social security structure, products or investments in the domestic market. Using an IPP can ensure that employee long-term savings benefits are held in regulated and reputable jurisdiction.
- funding for end of service benefit schemes - an increasing trend in countries where such benefits must be provided by employers under law.