CUSTOMER TRUST AS PART OF ITS PARTNERSHIP WITH FREEDOM TRUST, AVIVA CAN COVER THE COST OF PROVIDING TRUSTEE SERVICES AT NO COST TO THE EMPLOYER, WRITES STEPHEN RICE, PROPOSITIONS MANAGER – CORPORATE, AVIVA IRELAND. One of the most attractive and tax efficient ways for company directors to turn company profits into personal wealth is to transfer them into a company pension. When a company director takes profits from a company as a salary there is an immediate tax liability and this salary is subject to income tax of up to 40 per cent and PRSI/USC of up to 12 per cent. Many company directors are not aware that under Revenue rules a company may be eligible to contribute large amounts to a company pension on their behalf. This company contribution can be made alongside the member contributions, which can also benefit from tax relief. Our financial brokers have told us that many company directors are concerned by the responsibilities and cost of setting up a pension under trust. That is why at Aviva, we are pleased to have partnered with Freedom Trust as our preferred independent trustee for group pension, group life cover and executive pension plans. As part of our partnership with Freedom Trust, Aviva can cover the cost of providing trustee services at no cost to the employer.*
Who Are Freedom Trust?
Freedom Trust Services Limited is a Revenue-approved professional trusteeship company. As our independent partner, they will take on the role of the scheme trustee and make sure that the scheme continues to meet its regulatory requirements.
Why Aviva Has Partnered with Freedom Trust • It removes the significant roles and responsibilities of a trustee from the employer. • It offers members the comfort of independent oversight of their pensions.
• it provides trustee services to employers independent of Aviva. • They are approved by the Revenue as a pensioner trustee. • They have a significant level of pensions knowledge and experience, with its board having over 50 years’ experience between them. • They are a member of the Association of Pension Trustees in Ireland (APTI) and the Irish Association of Pension Funds.
The below shows details of the advantages of having Freedom Trust as a professional independent corporate trustee compared with an employer acting as trustee. Trusteeship Training Independent Corporate Trustee: No requirement for training as Trustee: Training every
two years for directors Expertise in Pensions and Trusteeship Independent Corporate Trustee: Extensive pensions and trusteeship expertise across the firm Employer as Trustee: No specific expertise Knowledge of Governance Requirements Independent Corporate Trustee: Experienced compliance team Employer as Trustee: No dedicated resource Experience of Duties and Responsibilities Independent Corporate Trustee: Detailed knowledge of trustee requirements Employer as Trustee: No detailed knowledge
Stephen Rice, Propositions Manager – Corporate, Aviva Ireland
Conflicts of Interest Independent Corporate Trustee: Independent trustee to avoid conflicts of interest Employer as Trustee: Potential conflict if employer is also acting as trustee Time and Cost Effective Corporate Trustee:
Savings on professional fees and trustee training costs Employer as Trustee: Additional costs for professional fees, trustee training and employer time Exposure and Liabilities Corporate Trustee:
Professional indemnity insurance in place Employer as Trustee: Exposure and potential personal liability * For all new executive pension plans and for new group pensions and group life cover subject to certain criteria such as, but not limited to, minimum annual premium and membership requirements. Please contact your company's financial advisor or visit www.aviva.com. SFA | BETTER BUSINESS 75
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