Professional retirement solutions for employers

1. Why do you need a retirement plan for your employees?

A retirement plan for employees secures the pension needs of your employees and helps them save for a higher retirement income. It also encourages your employees to show responsibility and interest.

1. How a retirement plans works:

Each employee has their own retirement account to which both the employee and the employer contribute. Each member invests according to their investment profile. Savings provide a retirement income at the time of employee retirement.

1. What are the plan’s characteristics?

• Flexible design

You can set your own criteria for adding employees into the plan. You also determine your contributions.

• Flexible contributions: Each member selects their contribution amount, and can increase or decrease it. The employer may choose to not contribute to the fund and to offer it voluntarily to staff.

• Flexibility to transfer from another retirement provider: Employees can transfer their retirement savings from another plan or entity, free of charge.

• Flexible investments: Each member can choose where to invest according to their personal investment profile and horizon. The employer can make the same or different contribution as the member.

• Flexible payments

• Flexible payments at retirement: Savings in a member’s retirement account are used as income. Each member can choose how they want to receive their retirement benefits –as a tax-free lump sum, as regular withdrawals, or by transferring them to another similar plan.

• Flexibility to pay benefits in the event of departure: if a member leaves the plan prematurely, they can immediately cash in their benefits or transfer them to another occupational pension plan or personal investment plan.

• Flexible facilities: In specific cases, the plan can provide facilities to a member by allowing the redemption of units from their account.

• Tax Incentives

• Tax exemption on the employer’s contribution: The employer’s contributions to the plan are deductible from taxable income by up to 10% of the employee’s salary.

• Tax exemption on the employee’s contribution: When a member pays their contributions to the plan, the amount of contributions is deducted from income for purposes of calculating the tax. Thus, the employee pays income tax only on their remaining income. This allows them to save for their retirement and reduce their tax bill. Current legislation limits the tax deductible annual amount that each member can contribute to the plan. This amount stands at 10% of the employee’s annual income, while taking into account the relevant provision for a limit equal to 1/6 of income. A member may pay a higher amount, but contributions over 10% will be subject to income tax.

• Tax exemptions on investments: The plan allows tax deductions on investments. Additional earnings received from the investment plan are credited to the member’s account until their retirement.

• Responsible Management

As an investment manager, EuroLife has been developing a successful investment strategy over the years. This strategy focuses on the following pillars:

• Wide diversification: Optimal diversification per investment class, geographic area and industry.

• Investment moves: Medium- and long-term investments that are based on fundamental analysis.

• Investment risks: Investment risk monitoring and management according to international practices (e.g. Value at Risk Scenario Analysis).

• Investment processes: Strict internal investment processes which ensure the optimal operation of the Investment Department.

• Liquidity: Maintaining substantial liquidity in cash and cash equivalents. Maintaining the greater part of the Investment Funds’ managed capital in liquid investments.

• External consultants/Investment managers: Use of external consultants and international investment managers such as UBS, JPMorgan, PIMCO, Blackrock, Goldman Sachs, State Street, BOCAM, Amundi, and BNP Paribas.

1. How much does the plan cost?

There is fixed lump sum for registering the plan; members are charged according to the total number of members participating.

The Monthly Management and Administration Fee is a percentage on the balance of each member’s personal account. The management fee is not charged to the employer since it is being deducted directly from members’ accounts.

1. Why should you trust EuroLife?

EuroLife offers an integrated retirement plan for your employees so that they can efficiently save for their retirement.

The EuroLife Occupations Pensions Plan is a simple and comprehensive solution that covers employees’ retirement needs. It provides flexibility in defining and modifying the plan’s characteristics according to the wishes of both the employer and the employees. It provides investment options to employees according to their investment horizon and risk profile.

EuroLife works with international investment management firms and has the necessary know-how in investment management with right investment diversification and attractive returns over the years.

EuroLife provides specialized support tools for better retirement planning and plan forecasting, as well as qualified staff for the best possible service and support.