Carey Group l Retirement Annuity Trust Scheme (RATS)

Carey Group l Retirement Annuity Trust Scheme (RATS)

KEY BENEFITS & CONTRIBUTIONS Carey Group offer a flexible and competitive solution for Guernsey residents wishing to establish a bespoke Retirement Annuity Trust Scheme (RATS). Contributions can be made by standing order direct from your bank account or you can contribute a lump sum e.g. annually. You may also make transfers from other pension plans e.g. an old employer or a personal scheme elsewhere. Key Benefits Flexible and bespoke investment opportunities, including commercial property Loans available to members (up to 30% of the value of the pension fund) at commercial rates No commissions, just simple transparent fees A flexible and competitive solution for those wishing to establish a bespoke scheme. A reliable personal service from a reputable local firm Contributions The amount you can contribute into a personal pension plan is set down by the Guernsey Income Tax Authority. There is currently no limit on the amount you can contribute although there is a limit on the tax relief available. Tax relief is available up to a limit of the lower of 50,000 or 100% of taxable income. This limit applies to the total of contributions made to all schemes. For further clarification of the limits please contact Carey Group. From 2011 onwards, it is possible to carry forward any unused tax relief on contributions for a maximum period of 6 years.

Carey Group RATS Transfers You may wish to transfer funds from other schemes into your RATS. Providing there are no restrictions on a transfer being made out of an existing scheme then lump sum transfers can be made. Transfers do not form part of your annual personal contribution limit. Transfers in from schemes outside of the Bailiwick of Guernsey may require the prior approval of the Administrator of Income Tax. How Can I Establish a RATS? Carey Pensions & Benefits Limited can provide a Trust Instrument and act as Corporate Trustee. If appointed as Trustee we will apply for Income Tax Authority approval for your RATS and prepare annual accounts for submission to the Income Tax Authority for the RATS. We will also liaise with you and the Income Tax Authority in the case of specific queries. Carey Pensions & Benefits Limited would receive into trust the pension fund and any additions, whether these are made by way of regular or irregular contributions, and would assist members in taking appropriate advice regarding the investment of the fund. Flexible and bespoke investment opportunities, including commercial property. A reliable personal service from a reputable local firm. Taking account of the members preferences we would appoint Investment Managers, open bank accounts and provide both trusteeship and administration of the pension plan and its investment.

INVESTMENTS & BENEFITS How Can the Funds Be Invested? The Trust can invest in a wide range of assets including bonds, equities, bank deposits and real estate let on a commercial basis. Loans of up to 30% of the pension value (providing they are made on a commercial basis) can be made to members however loans must be repaid before an annuity commences. When Can Benefits Be Taken? On Retirement Any age between 50 and 75. The rules allow you to retire at any age from 50 (earlier on account of ill health), however the value of your retirement fund may be smaller if you decide to retire at an early age than if you had continued to contribute. At any time following the attainment of age 50, up to 30% of the fund in a RATS may be withdrawn as a tax free lump sum. A pension does not need to commence at the same time as a lump sum is taken, however, it must commence by the age of 75 years. The Trust can invest in a wide range of assets including bonds, equities, bank deposits and real estate let on a commercial basis. Income, in the form of a pension, will be taxable in the usual way. Following discussions with the member, and with Income Tax Authority approval where necessary, the Trustees of the RATS will choose, upon the retirement of a member, whether to use the funds to provide income or to purchase an annuity from an insurance provider.

CAREY GROUP RATS - ON DEATH On death; following retirement This will depend on the decisions you make at retirement, for example if you don t buy an annuity the remaining value of your pension could be paid into your estate to benefit your dependents or used to benefit your dependents directly If you elect to use your fund to purchase an annuity, depending on the type of annuity that has been purchased, payment may continue to your spouse and/or dependents following your death. Alternatively, you may select an annuity which ceases on your death. On death; before retirement On the death of a member before normal retirement date, the value of the member s fund will provide a lump sum benefit and the Trustee will have power to pay the benefit to the member s estate and/or to any one or more of the member s relations and/or to such persons or bodies as the member may have notified to the Trustee in the proportions and manner that the Trustee decides. An election of beneficiaries form will be provided at the time of joining and should be completed and returned to us. If you elect to use your fund to purchase an annuity, depending on the type of annuity that has been purchased, payment may continue to your spouse and/or dependents following your death.

COMPETITIVE FEES Competitive fees for your benefit Costs are competitive and transparent, Carey Pensions and Benefits Limited as Trustee charges: Initial set up fee 500 Annual trustee responsibility fee 1,500 Transfer or Termination fee (minimum 750) Administration charged on a time spent basis charged on a time spent basis No commissions, just simple transparent fees...

Pension & Employee Benefit Services Retirement Annuity Trust Scheme (RATS) Carey Group offers a wide spectrum of pension and employee benefits services operating in both the UK and offshore markets. We have a history in acting as trustees and administrators for services including employee benefit trusts, qualifying recognised overseas pension schemes (QROPS), international pension plans and bespoke retirement plans including employer funded retirement benefit schemes. We specialise in providing bespoke solutions for your employee benefit or pension needs and will be happy to discuss your specific requirements. Our innovative software platform allows us to administer pension plans in an efficient and cost effective way, allowing web based access between members, administrators, trustees and fund managers. We also provide employer companies with access to a web based HR system allowing maintenance of pension records, calculation of contributions, and interaction with plan administrators. Carey Group Pension & Employee Benefit Services: QROPS/QNUPS International Pension Plans Defined contribution retirement plans Retired annuity trust schemes (RATS) Employee Benefit Trusts & Share Option Plans Employer Funded Retirement Benefit Schemes (EFRBS) UK Pensions: SIPP s, SASS, bespoke pension design, commercial property pension service, third party administration services, independent trustee services

CAREY GROUP Carey Group is an international financial services company, establishing and supporting structures for commercial, private and pensions and benefits clients, providing proactive management services such as domiciliation, administration and accounting. Multi-lingual staff provide multi-jurisdictional solutions using common and civil law expertise. All activities are carried out effectively, efficiently and with high quality. As a developing and forward thinking group we are always looking to invest in new opportunities. In recent years, we have established businesses in Luxembourg, Cyprus and most recently we successfully launched Carey Pensions UK, an independent administration and trustee company providing specialist pension services and products to the UK market. Our heritage dates back to 1968 when we established Carey Trustees Ltd one of the longest established independent trust companies in Guernsey. Consistent growth has led to operations in a number of key European locations with headquarters in Guernsey. We are associated with Carey Olsen, a leading legal services provider for Guernsey and Jersey law, although as an independent group of companies we work with our clients choice of professional advisers such as asset managers, lawyers, accountants, tax consultants and bankers. Carey Group Services: Pensions & Employee Benefits Services Fund Administration Stock Exchange Listing Services Corporate Services Private Wealth Services International Estates

Contacts Carey Group T: +44 (0) 1481 700300 F: +44 (0) 1481 711220 E: info@careygroup.gg PO Box 285 1st and 2nd Floors Elizabeth House Les Ruettes Brayes St Peter Port Guernsey, GY1 4LX To view the current Carey Group office contacts in detail with senior director profiles, please click the links below (requires web access). Group Contacts Meet The Team by individual office location director profiles and locations The information contained herein is a general summary and does not constitute professional tax, investment or legal advice and should not be relied upon. No responsibility is accepted for any errors contained in this information sheet which should not be circulated where such circulation would be an infringement of local laws or regulation. These schemes are established on the basis of current UK tax legislation regarding transfers of UK pensions overseas. All applicants should be aware that tax legislation may change in the future and that this may adversely affect the advantages offered by the scheme. Carey Group does not provide tax, legal or investment advice which should be sought in the country of domicile/residence of every client.