Offshore Group Pensions for Expatriates

on Wednesday, 29 October 2014. Posted in ,
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Caterer Goodman Partners (CGP) is proud to launch an Offshore Group Pension service for its corporate client base in Asia.

group-pension-schemesOwen Caterer, a partner of CGP, explained the background behind this decision since “In this ever-changing world, it is important for employers to help their employees to save throughout life and to provide for a comfortable retirement. International mobility often complicates the issue with many individuals losing entitlement to state benefits due to their non-residence. At the same time, the increasing trend away from state-funded benefits has only heightened the need for individual provision.”

Company Benefits

1. Assist Companies in Staff Retention

This feeling of security and belonging is a leading factor in key staff retention and attraction.   The cost of employee turnover is also underestimated. Although some studies put the cost at around 20% of annual salary, this underestimates the cost of key and difficult to replace staff that has unique experience and skill-sets. In these cases the costs can be in the range of 150-250% of annual salary. We believe that many experienced expatriate managers who have irreplaceable China or Asia experience certainly fall into the “difficult to replace” category. The cost of administering and contributing a small amount of salary to a corporate pension is small by comparison.

2. Electronic and Easy

Many companies shy away from corporate pensions due to misguided fears that these are only for large multinationals or due to the perceived administrative burden. In fact systems these days are very easy and can justify a plan down to as few as 10 expatriates.

This is achieved through support in a secure online ‘Service Centre’. Doing everything online like it was built by Google and Apple is the ease of use that all companies prefer. Many people would assume this is the default choice for all providers, but sadly, this is not the case, and often it is better to avoid large HR systems providers whose legacy systems hinder the development of truly electronic and easy to use systems that modern companies demand.

 3. Customizable

We specialise in international solutions that can be tailored exclusively to a company and their individual employee’s unique requirements which, in turn, allows more flexibility than can be found in an onshore plan. This can include variation on vesting periods, accessibility to company contributions, withdrawal age, currency, risk and a variety of other factors. The plans can also be designed to be portable, which is important in this global age.

4. Low Cost and Efficient Growth

A range of high quality investment fund options including low cost index tracking funds as well as secure deposit administration funds. We provide portfolio allocation services as part of this product to ensure the each plan member’s assets are managed appropriately with regard to their age and risk profile.

5. Secure and Safe

There are two layers or security that ensure complete protection of assets.

  1. The first is that all assets are held in trust, thus ensuring their safety in case of any failure.
  2. We only work with established investment and insurance companies that typically rank in the world’s Fortune 500 with assets under management in excess of $500 Billion USD in 2011 and therefore provide immense stability and security.

6. Plan Member Transparency

Our solutions always include online login for plan members.  The latest advances are even easier since they provide plan members with the option of using an Apple or Android applications to check on the progress of their individual pension.

7. Plan Member Co-Contribution – An Easy Service

Group Pension plans, due in part to their buying power, are far cheaper and more flexible than individual offshore pension solutions. We highly recommend allowing your staff/plan members to make personal contributions, which are usually 100% accessible at all times. This not only helps your staff save and provides ease of management in one system, but it also helps prevent your employees from being sold expensive and restrictive products that proliferate through many unscrupulous commission based brokers in Asia and the Middle East.

Next Steps

If you have a group of expatriates that would benefit from the security of a company organized pension, the next step is to contact us and discuss your individual needs. Following this we can custom build a solution, and provide you with detailed information that will include a recommendation on specific legal structure, service fees and product specifications.

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