International Savings Plans approved in Jersey07 Dec 2018
This week the States of Jersey (the island's government) has approved the introduction of a new International Savings Plans (ISP) regime that will come into effect from 1 January 2019.
The new ISP regime will serve multi-national companies wherever they are based in respect of their employee incentive arrangements, as well as employers in the Gulf Cooperation Council (GCC) to assist with their end of service benefit obligations.
Proposed by the Jersey Pensions Association (JPA) with support from Jersey Finance, the scheme enables large international institutions with globally mobile employees to establish savings plans in Jersey for non-resident employees. An ISP is distinct from a pension scheme, as it can pay out benefits not just on retirement, but in a wide range of circumstances. For example, it can provide benefits to employees when their employment ceases, when they are transitioning between jobs, retiring or faced with other life changing events.
Nancy Chien (chairman of the JPA and Bedell Cristin partner) has been instrumental in shaping this new legislation. She said: “Employers are looking for flexible employee incentive arrangements for retaining key talent. Jersey has an excellent track record in the pensions and share plans space, and the introduction of ISPs enhances that by demonstrating that we’re a modern jurisdiction that can adapt to the changing needs of clients.
International organisations want to establish sophisticated solutions in a well-regulated, tax neutral jurisdiction. ISPs are flexible and can be tailored to suit the needs of the employer and employee. We have no doubt that they will be popular for employers worldwide.”
Bedell Cristin can advise on whether an ISP might be right for you, prepare the trust documents, advise on the design of the plan and recommend scheme providers. Please get in touch with Nancy Chien or Lydia Carter.