Director / Executive Pension Plans (EPP)

EPP’s are taken out by senior executives or directors and are occupational pension schemes provided by the employer and operated by a life assurance company or self-administered.  The employer will provide a contribution for the member that is deductible against corporation tax and not treated as a benefit in kind to the member.

Although an EPP can be established in addition to any company group pension, it will still be subject to the lifetime allowance and the annual allowance.  An EPP is a defined contribution scheme so the income available when taking benefits will be dependent upon contributions made and investment returns.  At retirement, the individual can use the pension fund to buy a pension annuity but also has the option to search for the highest annuity rates using an open market option.  In addition, it is possible to delay buying an annuity and drawdown income from the fund.

Like self invested personal pensions, it is possible to invest around the world or into commercial property.