What benefits does the Section 615 International Retirement Benefit Scheme offer?

For the Employee

A Section 615 International Retirement Benefit Scheme offers for the first time, the following unrivalled combination of benefits:
* There is usually no tax liability to the employee.
* There are not usually any social security costs for the employer or employee.
* Pension rights may be taken entirely as a cash sum.
* 100% cash commutation by UK tax residents is tax-free.
* A minimum retirement age of 55, or earlier on leaving service.
* Individuals can select their own investment profile.
* Funds grow in a tax efficient, confidential environment.
* Employee contributions are permissible.
* Inheritance tax efficient.
* Continuity of pension contributions despite international relocation.
* Fund administration may be conducted by a number of sources.
* Generous contribution levels permitted by the Pension Scheme Office.

Most importantly of all, a section 615 International Retirement Benefit Scheme allows individuals to control and manage their exposure to local taxation and social security on their total remuneration package.


For the Employer

S615(6) schemes are surprisingly simple to implement and manage - they offer an all-encompassing solution for a multinational, mobile workforce.

Because of the tax-efficiency of s615(6) benefits in the hands of an employee, the gross cost of employment is significantly reduced for scheme members. Put simply, the net benefit to a s615(6) member entails a lower overall gross cost to the employer compared to a non-member (please see real life examples).

In most countries, pension contributions are not treated as a benefit in kind for tax and social contribution purposes. By re-routing an employee's surplus of income over expenditure requirements in to a s615(6) scheme, an employer will save on local employer social contributions.

Equally importantly, employer contributions are allowable against Corporation Tax in the UK.

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