Employer Financed Retirement Benefits Schemes or EFRBS are being introduced in response to new UK rules that reduce the higher rate tax relief on money saved into pensions for employees that earn more than £150,000 a year from April 2011.
Fidelity International has launched an EFRBS based on its Multinational Pension model. The asset manager provides a selection of 52 funds over a range of all main asset classes as well as administration. Members will have access to Fidelity’s Planviewer tool that allows them to monitor accounts and statements and make switches.
EFRBS are employer funded, tax efficient unapproved trust-based pension schemes. The assets are held in offshore investments to cut taxation on investment income.
There is no limit on contributions and no national insurance payments. Investment returns are not liable to income or capital gains tax. The benefits can be taken as a 100% lump sum or a 25% lump sum with the rest paid as income.
Employees can choose how to invest their assets at retirement as there is no need to buy an annuity.
Step Guernsey is hosting an evening lecture in conjunction with Collins Stewart Wealth Management on EBTS/EFRBS on 25 March at Old Government House, Guernsey.
