Guernsey Consults On Domestic Pensions
by Jason Gorringe, Lowtax.net, London
06 August, 2014
The Guernsey Financial Commission (GFSC) has launched a twelve week consultation on suggestions for revising the domestic Retirement Annuity Trust Scheme Rules.
The principal objective of the consultation paper is to explore options for reducing the cost of pension provision for residents as well as creating opportunities to allow them to manage their own pension investment.
Currently retirement annuity schemes, retirement annuity trust schemes, and employee contributions occupational pension schemes provide the only means by which islanders can make tax-efficient savings to provision for their retirement. However, such schemes can be expensive to run and offer little flexibility to islanders wanting to make their own investment decisions over their pension fund.
The GFSC has therefore decided to consult on potential changes that could be made to the pension rules to reduce the costs and open up opportunities for the development of self-invest pensions without any reduction in the protection available to members.
The Commission is encouraging members of the public and pension providers to respond to a questionnaire after which a working group of pension practitioners and GFSC staff will set up to consider the principal themes and proposals emerging from the consultation.
William Mason, Director General of the Commission, said: "I very much hope that Guernsey consumers will welcome the Commission's efforts in this area to simplify regulation and improve the value for money of pensions. I would encourage as many people as possible to respond to the consultation rather than regarding it as merely a technical consultation for industry experts."
The consultation closes on October 24, 2014.
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