Introducing: Jersey International Savings Plans05 Mar 2019
Launched in Jersey on 1st January 2019, the new International Savings Plan (ISP) vehicle is a welcome addition to the employee benefits market, serving multinational and international companies wishing to establish a flexible savings arrangement.
What is an ISP?
An ISP is a trust structure established in Jersey which is required to meet the following criteria:
- its sole purpose must be to benefit employees resident outside of Jersey;
- the trust must be irrevocable; and
- at least one trustee must be based in Jersey.
Benefits of an ISP
Ocorian see the introduction of the ISP as a great benefit to those companies wishing to encourage their employees to save for the future. An ISP can be adapted to meet the needs and requirements of employers looking to introduce a company sponsored employee benefit.
It is envisaged that the ISP will be particularly attractive to employers:
- with globally mobile employees;
- situated in the Middle East requiring assistance with their End Of Service Indemnity obligations; and
- employees wishing to acquire shares in their employer, using the ISP as a savings structure to do so.
The flexibility of the ISP removes constraints of traditional pension plans or the existing employee incentive arrangements by combining the most effective elements of both. For example, an ISP will enable employees to draw upon the benefits at the end of their employment or other wide ranging circumstances or life changing events such as changing jobs, redundancy, ill-health or divorce.
End-of-service gratuity payments are particularly common in the United Arab Emirates (UAE), with a recent study from financial services companies Old Mutual International and Quilter Cheviot revealing that 59 per cent of UAE residents depend on the payment to fund their retirement.
Ocorian have been administering employee incentive structures for over 15 years and have expansive experience in running savings plans for employees of large businesses from numerous jurisdictions throughout Europe, Middle East and Africa.
With a dedicated team of experienced professionals, sophisticated IT infrastructure and demonstrable track record in administering Employee Trusts, we can assist in the planning and implementation of ISPs to support their administration and visibility with employees.
Please get in touch with one of our team below if you wish to explore how Ocorian can assist you with the implementation of your new ISP.