Alexander Forbes and Standard Bank collaborate in supporting global business
Corporate Case Study:
Savings Plans for Internationally Mobile Employees
The Client:
Employers with employees who work across Africa.
The Challenge:
Providing streamlined, flexible employee savings plans.
The Solution:
Alexander Forbes Offshore and Standard Bank Offshore Trust Company Jersey Limited provided a savings plan to employers in the African continent who have staff deployed around the globe.
A unique International Savings
Plan, positioned as an alternative to traditional pension plans for internationally mobile employees, offers the client a more flexible savings solution than a pension plan.
Working with a well-known multinational company in North America who wants to support employees working in countries across Africa, the funds will be invested in a range of Alexander Forbes Investment funds within a lifestyle strategy, with the employer able to select a suitable retirement date for members.
The savings plan will operate under a Master Trust domiciled in Jersey, which is an investment vehicle that collectively manages pooled investments.
Results: At retirement or on leaving the company, members receive the value of their savings plan account. Contributions to the plan do not receive tax relief, however, there is no Jersey tax on the funds held in the members’ savings account and no tax is deducted on benefits paid.
On the death of the member, the Trustees are guided by the ‘Letter of Wishes’ provided by the member.
The savings plan complies with the requirements under Article 118D of the Income Tax (Jersey) Law 1961.