International Savings Plans

International Savings Plans

An innovative tax-neutral savings plan product, suitable for international employers to help their employees save for retirement and/or other life events. Especially popular with employers in the Middle East who may be looking to establish a bespoke end of service gratuity scheme.

International Employee Savings Plans, Employee Incentive Schemes, End of Service Benefit Payments, Gratuity Schemes.

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Fiduchi is an independent owner-managed financial services business. Being independent ensures we have the flexibility to deliver bespoke solutions that others may not be able to offer.

How Fiduchi can help with your International Savings Scheme

Fiduchi has experience of designing and implementing similar services as international savings schemes for clients globally. We can provide sophisticated structuring solutions, helping our clients put in place appropriate employee incentive schemes, whilst ensuring that each solution is bespoke, taking into account the client’s precise requirements and understanding the cultural nuances which surround them.

While international savings plan schemes are relatively new (launched in Jersey from January 2019) Fiduchi has designed and administered similar plans for over 10 years. We can assist in the establishing of a new savings plan or transfer a similar scheme into a new international savings plan.

What is an International Savings Plan?

An International Savings Plan (ISP) is an innovative savings plan product for international employers, which has been available in Jersey since January 2019. The ISP is designed to allow employers to create as flexible a plan as they need to meet the different requirements of their employees wherever they might be in the World.

This differs from the more rigid pension plans that employers have traditionally offered their employees. For example, ISPs can be set up to allow payouts to employees before the normal minimum retirement age. Under an ISP, a payout can be made at the end of an employment term or upon the occurrence of a significant life-changing event such as redundancy, divorce or ill health.

Why choose an International Savings Plan?

Being able to offer a well-regulated savings plan with flexible rules as to when benefits can be paid out is an attractive option for employers wishing to recruit and retain talent in a competitive marketplace. When employers put in place a traditional pension plan it usually means their employees are unable to access their savings until the point at which they retire, which means they are unable to fund  life-changing “trigger events” such as the termination of employment, redundancy, divorce, children going to university or children getting on the property ladder.

This often leads to poor take up of the pension plan, with employees seeking to save elsewhere. The ISP approach is different – it allows employers to design a plan structured around their employee’s real-life requirements and the needs of the company. This becomes a real selling point for the employer-based savings plan, especially when coupled with any rewards-based element that the employer may wish to design into the ISP. 

Key features of an International Savings Plan

The key feature is flexibility! Each employer can tailor their own ISP to meet the needs of the company and its employees.  

An employer can establish an ISP with different sections for its different types of employee. For example, EcoSun in the example above could set up an ISP with three sections; one to provide for the EoSB gratuity payments legally due to the Dubai-based employees at the end of their service; one to provide benefits to any staff that may be seconded to jurisdictions outside of their home territory; and one designed to allow all staff the ability to purchase shares in the company.

To qualify as an ISP, the plan must contain all of the following features:

  • Its sole purpose is to provide benefits in respect of a person’s employment, wholly outside Jersey;
  • It is established under an irrevocable trust under Jersey Law by an employer who is not resident in Jersey;
  • It has trustees (either two or more individuals or a corporate) who are regulated by the Jersey Financial Services Commission (JFSC - Jersey’s financial services regulator); and
  • It is not a scheme which comes within the pensions framework under Jersey tax legislation.

International Savings Plans

Frequently Asked Questions

Are ISPs available to local Jersey residents? 

ISPs are not suitable for Jersey residents and have been designed to fulfil the needs of non-resident employers and employees.

Are ISPs only being offered to residents in the Gulf region?

No, ISPs have not been introduced solely for Gulf region residents. However, it is envisaged that there will be much interest from the Gulf region as ISPs can easily be designed to incorporate mandatory end of service benefit payments.

Does a company need to have a minimum number of employees before they can setup an ISP?

There is no minimum requirement for the number of employees needed to set up an ISP.

I am an employee, based in England, of a multinational company offering ISPs. Can I have an ISP and a pension?

Yes, it is possible to have both an ISP and a pension. Your employer decides whether to offer an ISP in addition to a pension.

What are the implications from a tax perspective?

Jersey ISPs are granted approval by the Jersey Tax Office and are tax-neutral vehicles. Income and gains can be accrued tax free in Jersey and distributions out of the ISP will not be taxable in Jersey. In addition, certain jurisdictions may offer tax relief to sponsoring employers in relation to any employer contributions made to an ISP.

More questions?

See our leaflet below on the 10 frequently asked questions about ISPs.


Testimonials

"THANK YOU TO OUR GUARDIANS!

I would like to extend a BIG thank you to the Fiduchi team for taking such good care of me and my business. It's reassuring to know that there are some guardian angels out there to look after us."

Founder & CEO - SUPERLUXE Events

"Thank you very much for your professional assistance (and patience) in helping us transfer our shares and assets into the new Trust. I know that it has taken longer than expected. Still, your professionalism and continued support have helped us achieve the desired outcome."

Chairman and CEO

"My sincere thanks for the assistance you have provided the advisory committee by coordinating directly with the charity to formalise an agreed donation plan."

Private Client (Charity)

"Many, many thanks for your hard work and speed at setting up our client's Private Investment Company in just 24hrs! Your flexibility and communication throughout the whole process have been appreciated, and the feedback has been tremendous......

Thank you."

Major UK Law Firm

"Thank you, everyone, for delivering this significant re-structure to our family assets and within a very tight timeframe.

Great to get this finalised!"

Mr. C - Private Client

"THANK YOU TO OUR GUARDIANS!

I would like to extend a BIG thank you to the Fiduchi team for taking such good care of me and my business. It's reassuring to know that there are some guardian angels out there to look after us."

Founder & CEO - SUPERLUXE Events

"Thank you Fiduchi for the design and implementation of our corporate pension scheme. Your expertise combined with technological platforms, have allowed us to create a bespoke retirement savings product which allows our employees. Throughout the whole process you have proven to be professional, skilful and enjoyable partner to work with."

Mr. R E - Managing Partner - H Ltd.

"We consider Fiduchi an important strategic partner of ours. Over the years they have proven themselves to be professional and extremely thorough. Combined with this professionalism, they are always a pleasure to deal with and we are pleased with their service levels."

Mr. P.E, Managing Director, W Ltd.

“I am very impressed with the professionalism and efficiency Fiduchi Limited demonstrated during the establishment of our employee benefit trust. They coordinated the process seamlessly and provided us with valuable advice and guidance to ensure compliance with our regulatory and legal responsibilities. Throughout my engagement with the team, I have found them to be approachable and easy to work with.”

Mr. P.B. FE Ltd.

"Thank you for helping us with the establishment of our real estate fund."

Startup Fund Manager

"Thank you so much for helping my client register their vessel with the Red Ensign Group and all the other advice and support you provided!"

Trusted advisor to Yacht Owner.

"Fiduchi's yacht team provides a first-class service! In particular with assisting us with our crew banking requirements and payroll services. Whenever we need assistance, they are just a phone call away!"

Superyacht Captain

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