If you are the Finance Director of a small or middle size company you will be faced with the quandary of how to provide employee benefits for your Executives and Key worker. In the past employers frequently rewarded their higher earners, Directors or Managers with a separate pension scheme, known as an Executive Scheme. The employee usually enjoyed superior benefits or contributions to the main workforce.
Today you should be considering more flexible pension arrangements. For most senior staff a Self Invested Personal Pension (A SIPP) will provide the most flexible type of arrangement.
Nicholls Stevens can advise employers on the various options available to them. A Self Invested Personal Pension may be the answer this allows different levels of contributions for different Executives depending on the salary package. If the employee wants to make a contribution this can often be arranged by salary sacrifice which brings taxation and national insurance benefits.
Good investment advice is key to such schemes providing the level of benefit the employer would wish. A self invested personal pension gives the employee the option to invest directly into shares and fixed interest securities, or to use collective funds. It is even possible to include a commercial fund within such a scheme. With the extent of the choice of assets which can be used within a SIPP the employees need expert investment advice Each executive can have his or her scheme set up in line with their attitude to risk and proximity of retirement. Now that there is no obligation to purchase an annuity at age 75, the Executive will need advice on a lifelong basis
Complex regulations concerning maximum contributions eligible for tax relief and the problems which ensue for overfunding your pension and exceeding the Lifetime Allowance, means that expert advice , such as that offered by Nicholls Stevens is vital for high earners
As part of the service to the employer Nicholls Stevens will set up a regular review meetings with each employee. At these review meetings Nicholls Stevens will provide the Executive with a full review of his personal finances including tracking the performance of the pension scheme.