Deliver benefits that are valued, cost efficient and help you attract, recruit, motivate and retain your employees.

Transcription

1 RBC INTERNATIONAL Pensions and Savings Solutions

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3 INTERNATIONAL Pensions and Savings Solutions Deliver benefits that are valued, cost efficient and help you attract, recruit, motivate and retain your employees. RBC has been active in the international retirement market since We have significant knowledge and experience in working with multi-national clients and advisors in implementing effective international pension and savings solutions at a fair and transparent price. Structuring our pension and savings solutions as trusts enables us to provide a secure solution with the backing of a safe and stable Canadian bank. About RBC RBC is one of the world s leading diversified financial services companies; one that is distinguished by a long heritage of financial strength, integrity and unwavering dedication to our clients. RBC is among the top 5 largest banks in North America (1) and top 12 largest banks globally (1). Further information on RBC is available at rbc.com/investorrelations. Attracting, engaging and retaining employees in a GLOBAL MARKET Today, in addition to the traditional expatriate employee, there is a cadre of Internationally Mobile Employees (IMEs) who complete successive assignments moving around the world. From a retirement perspective, these individuals are often ineligible to participate in their host country pension plan and do not have a home country of work in the traditional sense. In addition, typically IMEs do not want to join local third country plans as they recognise the complexity and inadequacy of fragmented pension provision in terms of currency risk, investment return and ultimately the difficulty they will face in accessing that provision. Another challenging employee group in terms of pension provision is employees who work in locations that do not have a robust or mature pension or savings framework. Providing meaningful pension and savings provision to this group can be costly and time consuming. A low cost solution for both these groups of employees is to create a central international pension or savings plan. RBC offers a range of international pension and savings structures for employers with a globally mobile workforce or local employee populations in countries with an immature or non existent pension or savings framework. (1) Market data from Bloomberg as at December 2, RBC INTERNATIONAL Pensions and Savings Solutions 2

4 Differentiate yourself from your competitors As the movement of employees between countries becomes more common, the provision of coherent pension and savings benefits comparable to those enjoyed by domestic employees are increasingly important. Employers often find out too late that they have no method to determine what an IME s retirement benefit should be, or to do so is a costly exercise. This leaves employees with uncertainty over their future retirement planning and so can act as a barrier to employee mobility. RBC delivers corporate sponsored international pension and savings plans that are comparable to those available to local employees in mature pension markets. Employee: I want a single pension that is simple, cost effective and secures my future so that I can retire with an adequate pension. Employer: A company sponsored workplace pension or savings plan is cost effective, simple for employees to understand and can help us, as a responsible employer, to secure their future. It is important to us that our employees value this benefit. HOW CAN RBC HELP? RBC can help you to implement workplace pension and savings plans. These are flexible, portable and meet the requirements of an internationally mobile workforce. Employers can select one or more of the following RBC pension and workplace savings arrangements: n executive and international pension plans that are designed to be retained until retirement age n executive and international savings plans that are designed to be distributed when an employee leaves service. We can provide a tailored solution or a standardized approach complete with online access, plan rules, menu of investments, ongoing and robust investment performance monitoring and trustee and administration services. 3 RBC INTERNATIONAL Pensions and Savings Solutions

5 We offer a suite of workplace pension and savings plans that are flexible, portable and meet the requirements of an internationally mobile workforce. We offer multi-currency contribution, investment and distribution facilities and a diverse, multi-currency investment fund range with a broad spectrum of risk. EMPLOYER BENEFITS n Forms part of a competitive benefits package n Can be used as a tool to attract, retain and motivate employees n Plans with a matching contribution design allow employer and employee to share the burden of building a secure financial future n Can be used to provide pension and savings provision to employees in countries where there is an immature or weak pension or savings framework n Can be used to provide unified and consistent pension benefits, supporting a global reward strategy n Flexible plan design to match the objectives of the company n Multi-currency contribution, investment and distribution available n Reduced operational costs for a single plan compared to many local plans n employer demonstrates a responsible approach in helping to safeguard the future of its employees. EMPLOYEE BENEFITS n Convenience of saving through a corporate sponsored plan: simple opt-in election with payroll deduction if the employee contributes n Access to a diverse, multi-currency fund range of investment choices with a broad spectrum of risk n Helps secure the financial future of employees into retirement and through significant life events n Cost effective savings n Avoids fragmented pension provision. RBC INTERNATIONAL Pensions and Savings Solutions 4

6 RBC INTERNATIONAL PENSION AND SAVINGS SOLUTIONS RBC offers a number of trust based pension and savings solutions. Executive and International Pension Plans Expatriate employees Defined contribution Employer and/or employee contributions International based trust location (1) Can be offered to all employees or a target population Contribution rates can be variable Eligible for distribution at retirement or early retirement Executive and International Savings Plans Target population Expatriate employees Plan operation Defined contribution Employer and/or employee contributions International based trust location (1) Can be offered to all employees or a target population Contribution rates can be variable Distribution upon leaving service Local Savings Plans (used in countries with no or immature pensions or savings framework) Local plan population Defined contribution Employer and/or employee contributions International based trust location (1) Can be offered to all employees or a target population Contribution rates can be variable Distribution upon leaving service Income and gains roll up tax free, assuming the funds held are Luxembourg or Dublin OEIC or UCITS Multi-currency actively and passively managed funds covering a wide risk spectrum, cash or other lower risk investments Taxation of trust vehicle (1) Income and gains roll up tax free, assuming the funds held are Luxembourg or Dublin OEIC or UCITS Investment options Multi-currency actively and passively managed funds covering a wide risk spectrum, cash or other lower risk investments Income and gains roll up tax free, assuming the funds held are Luxembourg or Dublin OEIC or UCITS Typically narrow investment range tied to the local population s currency and investment sophistication It is important to note that the tax position of the sponsoring corporate employer, any or all participating companies and any or all participating employees and beneficiaries is dependent on their own individual facts and circumstances. (1) It is assumed that the trust will be resident in either Jersey or Guernsey in the Channel Islands. 5 RBC INTERNATIONAL Pensions and Savings Solutions

7 CASE STUDY INTERNATIONAL PENSION PLAN The client: n A USA headquartered confectionery company with worldwide operations. n they have a population of over 500 global employees who are internationally mobile employees. The issues: n over the years there was no consistency or co-ordinated approach in terms of pension provision for this population. n this led to inconsistent pension provision and a perception amongst employees that colleagues in a similar situation were getting a better deal than them. The solution: n the company centralised all dealings with their global employees through head office. n Due diligence was carried out to understand the different packages employees were on. n A global employment company was put in place and all internationally mobile employees were moved onto this employment arrangement. n the company implemented an international pension plan to provide pension provision. The result: Management of the internationally mobile employee population was much easier because of a consistent approach. From a pension perspective, employees were happy to have one pension with a diverse investment range unrelated to their particular place of work but accessing international fund markets. RBC INTERNATIONAL Pensions and Savings Solutions 6

8 How can RBC help you? RBC offers a full trustee, administration, investment and record keeping service, either as a bundled or unbundled solution. We can provide a tailored solution or a standardized approach complete with online access, plan rules, menu of investments, ongoing and robust investment performance monitoring and trustee and administration services. Strength, stability and security In addition to the trustee and administrator being part of one of the largest global banks, all assets held within our pension and savings plans are held in a trust structure. This means that the assets do not belong to, and are separate from, the sponsoring and contributing employer as well as from RBC. The assets are held in trust for the benefit of the participating employees and their dependants. The security provided by a trust structure is difficult to match using any other vehicle. A flexible solution We have a flexible approach. We work with you and your advisors to determine the most appropriate pension or savings plan for your company. If your challenge is that you have a group of employees who do not belong in their home or host country pension plans, then an international pension plan may be suitable. If you would like to provide broad based arrangements to help all levels of employees save for a life event, a broad based savings plan may be the solution. Experience RBC has been active in pension and savings plans for over seventeen years. Our team is stable and has very low turnover. Most of our senior people have worked in employee benefits for over 10 years. Many are professionally qualified, bringing different skill sets for the benefit of clients, including: n lawyers n accountants n chartered secretaries n trust specialists n corporate HR/compensation professionals. Employee experience Employees can access plan data online and with the additional benefits of: n Real time valuation n Multi-currency reporting n online switching n Pension and savings modelling n Access to employer communication n Risk profiling and assistance in investment selection. In addition, employee telephone helplines and helplines are available. Implementation RBC has a robust implementation methodology that includes appointing a dedicated project manager and regular interaction with the client to ensure timely and efficient implementation. Multi-currency We accept contributions, make investments and pay distributions in a multi-currency environment. As part of our standard service, we can accept and pay away in EUR, GBP, HKD, JPY, SGD and USD. Additional currencies are available on request. Investment options The pension and savings plan fund range is made up of a menu of funds, denominated in many different currencies. The funds are chosen using an open architecture approach and the overwhelming majority of these funds are external to RBC. A sample investment range is available on request. We are one of the few providers who have ISO9001 accreditation. 7 RBC INTERNATIONAL Pensions and Savings Solutions

9 Employer experience Employers can also access plan data online and view individual participants accounts. A single relationship manager supported by an administration team is appointed to your account. The relationship manager is responsible for the overall relationship and as he or she has a small number of clients, they work closely with you in supporting the ongoing administration of your plan. MORE INFORMATION More information is available at Contact us t + 44 (0) e cees@rbc.com About RBC Corporate Employee & Executive Services (RBC cees) RBC cees is part of the RBC Wealth Management division. RBC cees was formed in November 2005, following the acquisition of Abacus Financial Services Group. With over 20 years experience, 220 staff and assets under management exceeding US$23bn, RBC cees manages in excess of 1000 participant benefits plans for more than 475 corporate clients.* * Figures quoted as at December RBC INTERNATIONAL Pensions and Savings Solutions 8

10 OFFICES Europe Jersey Broad Street St. Helier, Jersey Channel Islands, JE1 8PB t f Guernsey PO Box 48, Canada Court St. Peter Port, Guernsey Channel Islands, GY1 3BQ t f London Riverbank House, 2 Swan Lane, London, EC4R 3BF t +44 (0) f +44 (0) Edinburgh Exchange Tower, 9th Floor 19 Canning Street Edinburgh, Scotland EH3 8EG t f Asia and Middle East Singapore 20 Cecil Street #28-01 Equity Plaza Singapore t f Hong Kong 17/F Cheung Kong Center 2 Queen s Road Central Hong Kong t f Dubai Park Place Tower, Suite 1403 Sheikh Zayed Road, PO Box 3614 Dubai, United Arab Emirates t f Geneva 6 Rue François-Diday 1204 Geneva Switzerland t f RBC cees Limited ( the Company ) is regulated by the Jersey Financial Services Commission in the conduct of trust company business in Jersey. RBC Corporate Employee & Executive Services ( RBC cees ) comprises a number of companies which are all subsidiaries of RBC. RBC cees terms and conditions are updated from time to time and can be found at Registered office: Broad Street, St. Helier, Jersey, Channel Islands, JE1 3PB, registered company number / TM Trademark(s) of Royal Bank of Canada. Used under licence CA/Aug 14/549 9 RBC INTERNATIONAL Pensions and Savings Solutions

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