International Savings Plans approved in Jersey

The States of Jersey has approved new legislation that allows Jersey to launch International Savings Plans (ISPs) from 1 January 2019.

The plan is tax office-approved and was proposed by the Jersey Pensions Association (JPA) with support from Jersey Finance. The approval of the new plan enables large international institutions with globally mobile employees to establish savings plans in Jersey for non-resident employees.

ISPs are designed to capitalise on opportunities such as end of service benefit plans from the Gulf Cooperation Council (GCC), savings structures from the Far East and flexible lifetime savings plans from many other international employers.

Many jurisdictions, such as the United Arab Emirates, require employers to make payments to employees when their employment ceases or to help them in the transition between jobs or into retirement. Plans must account for funding such payments and ISPs will facilitate this.

Client Director of the Pensions & Savings team at Intertrust in Jersey, and JPA member, Mark Lindsay was heavily involved in proposing the new legislation and seeing it through to approval.

“ISPs are the latest innovation in the pensions and savings space and will allow Jersey to remain at the forefront of financial services developments and offer solutions that appeal to a global marketplace,” said Mr Lindsay.

“International organisations have long looked to well-regulated, established jurisdictions to set up vehicles to safeguard their employees’ futures and Jersey is now in a position to benefit from a brand new suite of legislation. ISPs are flexible and designed to meet the ever-changing needs of employees and employers so represent the perfect solution for many organisations.”

“The introduction of this legislation is the result of the hard work of many but special mention must go to Nancy Chien, Chairman of the JPA and Partner at Bedell Cristin, Paul Eastwood, Deputy Comptroller of Tax and Lisa Springate and her team at Jersey Finance.”

For more information on ISPs and how they can provide a global solution to your business please get in touch with our expert below.