The Executive Pension Plan is
an occupational pension scheme arranged by an employer who
wants make available a pension scheme for his Directors and key
The scheme is set up under discretionary
trust - and the trustees are responsible in law for the way
that the scheme operates. The trustees may appoint a scheme
administrator to help them with the administration but they
ultimately remain responsible for the scheme. Membership of the
scheme cannot be compulsory.
The plan is governed by the Inland
Revenue Practice Notes IR12(1997) for occupational pension
Employers must make payments of at least
10% of the overall total payments made for each member.
Employers can require members to make regular payments.
Employees can decide to make Additional Voluntary
Payments are collected from the
employee's salary before tax is calculated. Employer
payments are allowable as a business expense.
Royal & SunAlliance's Executive
Pension Plan offers up to fifteen pension funds into which
payments can be invested. Units can be switched between funds
at no extra charge up to 12 times a year.
A protective switching option can become
effective between two and ten years before the Selected Pension
Date. Protective Switching allows you to automatically switch
your pension fund to funds with a lower risk rating as you
approach your Selected Pension Date. This reduces the potential
impact of any adverse market conditions as you approach
The plan allows the employee to take
benefits any time after age 50. The Executive Pension Plan
allows the employee to continue paying after the Selected
Pension Date up to their 75th birthday. However, the employee
may retire earlier than age 50 if he should become too ill to
work or if he has a job that the Inland Revenue recognises as
having an early retirement age.
about our Executive Pension Plan can be found in the Key
Features, Product Guide and Members Guide.