Executive Pension Plans

An Executive Pension Plan (EPP) is a tax-efficient savings plan set up by employers for key employees. Typically, an EPP is set up under a trust with the employer acting as the trustee.

Both the employer and the employee can make contributions into the pension. An EPP can be an excellent way for company directors and other valued employees to save for retirement. Depending on your age, you may be able to contribute up to 40 percent of your income into your pension and claim tax relief.

A company contribution can be treated as a tax-deductible business expense; however, large one-off contributions may have to be spread over a number of years. Company contributions are not subject to BIK, Income Tax, PRS or USC. Extracting company profits via employer contributions results in tax relief for the employer and no tax liability for the employee.

You can also add additional life cover to your pension. Company contributions for this cover are tax-deductible as a business expense.