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www.itcinternationalpensions.com
ITC OCCUPATIONAL RETIREMENT SCHEME
ITC is a leading provider of self-administered pension structures in Ireland.
Administering over €1 billion of client funds in 3,000 pension structures. ITC act as
trustees of self-administered pensions schemes, which typically have one member.
ITC also act as trustees to larger occupational schemes, which can have a large
numbers of members, and private trusts. ITC has combined with Fexserv, one of
the largest financial services groups in Malta, to form ITC International Pensions
Ltd. We pride ourselves on our high-quality service and technical skill ensuring our
staff have the expertise to provide a highly efficient and professional service to our
members and advisors.
“ We pride ourselves on our high-quality service and technical skill”
WHO ARE WE?
Occupational pension funds in the EU 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 EU achieves this is through Directive 2003/41/EC which regulates
the activities of all Institutions which avail of these freedoms in relation to Occupational
Retirement Provision - the IORPs Directive.
The combination of maximum flexibility and rigorous prudential standards means
an IORPs is an ideal mechanism for the management of your retirement benefits.
WHAT IS AN IORPS?
“Occupational pension funds in the EU benefit from the principles of free movement of capital”
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• Established under, and with the benefit of the protections from, the IORPs Directive.
• Access to a wide range of investment opportunities which can grow free from income or capital gains tax.
• You can combine various smaller pots into one large pot.
• Ability to retire at an age that suits you and to take benefits in a form that is best for you.
• Flexible drawdown available from age 50.
• Up to 30% lump sum available when drawdown commences.
• Any portion of your Account not used by you during your lifetime passes directly to your nominated beneficiaries quickly and efficiently.
The funds we accrue during our working lives are intended to provide us with adequate income in retirement. However these benefits need to be structured in a flexible fashion to ensure you receive benefits when you most need them.
Consider a couple accessing a pension lump sum at age 60 but continuing to work until age 66. The balance of their fund amounts to €1m. The couple could:
1. Buy an annuity.
2. Invest in a fund with a fixed drawdown of 5%.
3. Invest in an ITC IORPs with a flexible drawdown.
The key period the fund is needed for is from age 67 onwards. Assuming a joint life expectancy to age 90 the couples will generate the following benefits during that period:
• Option 1 - Income of €611,110 with no balance for kids.
• Option 2 - Income of €809,345 with €532,432 balance for kids.
• Option 3 - ITC IORPS - if same income as Option 2 is taken then the balance for kids is €1,265,496. Alternatively income for parents can be increased.
Assumptions: Annuity rate of 2.657% as of 21.6.16; growth rate of 3% p.a.
BENEFITS OF AN ITC OCCUPATIONAL RETIREMENT SCHEME:
BENEFIT OF FLEXIBLE DRAWDOWN:
For further information on how an ITC Occupational Retirement Scheme can
benefit you, please discuss your options with your financial adviser.
GET IN TOUCH
www.itcinternationalpensions.com
ITC International Pensions Limited is authorised and regulated by the Malta Financial Services Authority and registered under the Retirement Pensions Act as Retirement Scheme Administrators.
ITC International Pensions Limited Alpine House, Naxxar Road, San Gwann, SGN 9032, Malta.
Tel: +356 2576 7000 Fax: +356 2576 7100 Email: [email protected]
