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Seattle Car Insurance. As the name implies, an executive pension plan is a tax-efficient savings plan designed especially for executives, senior executives, key employees and directors of a company. It is one of the best forms of pension schemes that enable the executives to get a tax-free income after retirement.

How does this work?

Executive Pension Plan is regulated by the Pensions Regulator. In most cases the employer pays into the plan, in others, both the employer and the employee pay in the plan. Thus a tax-efficient fund is designed for the employee. This is used to provide tax-free cash and a pension income to the executive after his retirement. Executive pension plans are similar to any other pension schemes in which they function as money purchase occupational pension schemes.

Normally, Executive Pension Plans (EPPs) are designed by the company directors for their personal benefit. But it can be utilized by their favoured key employees with the same levels of income that this investment can offer. Seattle Car Insurance. In such cases, the pension fund is held up under a trust in which the trustees are responsible for the day-to-day administration activities like ensuring if the payment contributions and the payout benefits are maintained regularly. Under this scheme, each employee can have the liberty to retire early or to work past the company's retirement date.

Benefits:

The executive pension plan has huge benefits for the employers when it comes to recruiting potential employees. Employers can attract and motivate the employees and reward them with EPP schemes based on their performance. Showering performance incentives for your employees can be a good idea. But still offering them a long term benefit, something which they could count on even after their active working years allows them to understand that they are your important business assets.

Another benefit of executive pension plan is that certain schemes are eligible for a top up. With an increase in the life expectancy of the applicant, topping up the plan can help in building a larger fund that guarantees a high level of income post retirement. Seattle Car Insurance.

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