International Pension Plan

Companies are employing more long-term expatriates than ever before, to align with their increased global presence.  Because these individuals tend to be experienced, senior, and highly qualified individuals who can be difficult to attract and retain, providing suitable benefits for these globally mobile employees is vital.


Trying to integrate with local pension arrangements is time consuming, costly, and often impractical for international nomads from a regulatory and taxation perspective.  An International Pension Plan (IPP) offers multinational organizations a flexible, tailored, cost-effective solution that provides a single pension solution for these mobile employees, regardless of their changing location. We have considerable experience of how to deliver the most appropriate solution, and will work with you and your adviser to create an IPP solution that is the best fit for your business.


IPPs also allow employers to top up existing retirement savings, particularly for senior employees or for expatriates working in locations where local retirement plans are compulsory but where benefits may be lower than a home-country plan.  Establishing an IPP provides a single, portable vehicle for top-up contributions to ensure that the international ‘nomad’ is not disadvantaged as they move through different global territories.




IPPs are not overly complex or opaque and employers can work with  advisors to ensure the scheme is designed appropriately. However, multinationals wishing to implement would do well to consider the following:


  • A basic but key consideration is whether the plan should be funded or unfunded — the increasing preference is for the former, since these are seen as more secure and providers are more willing to administer them
  • Next is whether to use a trust or contract structure. Increasingly, employers are favoring contract-based defined contribution plans since these are perceived as less legally onerous.
  • Finally, employers must choose between bundled or unbundled arrangements. The former involves one provider taking care of the administration, investment, and insured or trust services, while the latter allows the employer to take elements of the plan operations in-house or choose multiple best-in-class external providers.


Making the right choice is dependent on employers understanding the demographics and expectations of the global nomad and expatriate workforce.



One insurance solution for your global business



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