Executive Pension Plan

Director / Executive Pension Plan (EPP)

Executive Pension Plans (EPP) are tax-efficient savings plans set up by the company for key employees. The employer (and sometimes the employee) pays into the plan, to build a tax-efficient fund, which is used at retirement to provide tax free cash and a pension income. In effect, EPPs are money purchase occupational pension schemes and operate for the most part like any other pension scheme.

Free initial consultation

You are more than welcome to discuss your pension requirements with Peter or another of our pension advisers, at a free introductory meeting.

READ MORE

EPPs are normally established by company directors or other valued employees for their own benefit, though, only the favoured can expect to be given the levels of investment that these schemes offer.

From an employer’s perspective, an EPP can form the core of a benefits package to attract, motivate and reward key executives. Additionally, there are financial benefits as contributions are allowable business expenses and can be set against taxable profits. Furthermore, there is no NIC liability and so extra pension contributions into an EPP can be made instead of salary increases.

We can offer tax-efficient planning so you can minimise taxes on your retirement income and investments.

DISCOVER MORE

The pension fund is set up under trust, with the trustees responsible for the trust’s day-to-day administration, such as ensuring contributions are paid regularly and benefits are paid out promptly.

For the individual, there is flexibility of retirement, allowing the person to retire early and hand over to others [although benefits can only be taken from age of 55 (57 from April 2028)] or to work well past the company’s normal retirement date.