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Expat Pension Plan

Last post July 23, 2012 03:00 AM by kris. 1 repiles.
July 23, 2012 02:59 AM 1
Total Posts: 32
Join Date: December 4, 2008
Rank: Executive
Post Date: July 23, 2012
Posts: 32
Location: India

Expat Pension Plan

Dear All,

Just wondering if any of you know of any plan that is similar to the CPF.  We have an expat staff (not a PR) who is on employment pass.  This staff was transferred from our Group company.  We would like to contribute CPF for him so that he has in this fund a sort of retirement or pension should he decide to leave the organization or he is transferred to another location within the Group.

The problem is we cannot contribute to CPF since he is not a PR. The CPF rules were changed last year.

Do you have a solution to this?  If so, can you share with me the scheme that is similar.

One solution we can think of is open a separate bank account and credit the 13% of his monthly salary into this account.  By the time he leaves, he can take the money.  However, this amount is of course taxable which the company will have to bear (added cost to us).

The other solution probably is to take up a kind of insurance plan (endowment fund, maybe)and contribute an amount equivalent to 13% of his gross salary.

This may not be workable as his salary will increase every year and the 13% changes.

Can you help?

Dadouch
July 23, 2012 03:002
kris
Total Posts: 22
Join Date: December 4, 2008
Rank: Executive
Post Date: July 23, 2012
Points: 110
Location: India

Re: Expat Pension Plan

Hi dadouch,

If he is an expat. He will be in a home pension scheme. Contribute to the home pension scheme. Use a shadow base salary to accommodate for the tax burden in either cases.

Incase he is not in a home pension scheme go with the bank account deposit. Again use shadow base salary to tax equalise so that the company does not have a heavy burden.

Hope this helps.
 
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