The Institutions for Occupational Retirement Provision Scheme allows occupational pension funds in the E.U. to benefit from the principles of free movement of capital and free provision of services. This freedom is supplemented by rigorous prudential standards, ensuring that pension fund members and beneficiaries are properly protected. The manner in which the E.U. achieves this is through Directive 2003/41/EC which regulates the activities of all institutions which avail of these freedoms. IORPs schemes do not require overseas residency.
Independent Trustee Company Ltd acts as a trustee of self-administered pensions schemes, which typically have one member. Independent Trustee Company Ltd also acts as a trustee to larger occupational schemes, which can have large numbers of members and private trusts. Independent Trustee Company Ltd has conjoined with Fexserv, one of the largest financial services groups in Malta, to form ITC International Pensions Ltd which is authorised and regulated by the Malta Financial Services Authority and registered under the Retirement Pensions Act 2011 as Retirement Scheme Administrators.
Malta is a respected, English-speaking financial centre with a robust overseas pension scheme legislation. It also brings the security of being a full member of the European Union. Malta has over 70 Double Tax Treaties (DTA’s), for residents of countries that have a DTA with Malta such as Ireland.
Benefits of the ITC International Pension Scheme
- 30% Tax Free Lump sum entitlement on retirement of scheme with no limit.
- Retirement of scheme solely based on the attainment of age 50.
- Transfer to ITC International pensions scheme is a Benefit Crystallisation Event (BCE). This provides flexibility where a fund is likely to breach the €2m standard fund threshold.
- No deemed distributions as with an Approved Retirement Fund. Any distributions are subject to income tax in Ireland.
- On death the fund transfers gross to the nominated beneficiaries, whether fund is pre or post retirement. In Ireland, post retirement schemes (ARFs) transfer to an ARF in the surviving spouse’s name which is taxed on subsequent drawdown.