Pension / Employee Benefit Trusts
Pension legislation does not currently exist for non-national, expatriate workers in the Arabian Gulf. The rules governing service-related benefits are those laid out by the Ministry of Labour. Under current U.A.E. Labour Law, Employees’ are entitled to a lump sum, payable at the end of service, known as Terminal Gratuity, that falls due only when an employee leaves service.
In an environment where tax is not levied on income or benefits, tax relief is not the issue. The concerns are about segregating Employee gratuity funds from the assets of the Employer and managing costs, whilst offering incentives to attract the highest calibre Expatriate staff.
Ryland Gray provides a ‘custom built’ solution, involving the establishment of a special-purpose Trust, designed around the employers’ specific requirements, with the aim of providing security and control with enhanced and flexible employee benefits.
Once in place it is a permanent, flexible, and cost effective solution – not just to the End of Service Benefit issue, but one which can also assist with other employee remuneration-driven matters such as staff recruitment, loyalty and retention.
Individually designed to meet each company’s specific requirements, the benefits can also be expanded to include Death in Service and Medical Insurance benefits.
Our administration services ensure that the Scheme records are precise and accurate and, as the interface between all parties – Employer, Trustee, Fund Manager and Employee, all transactions are carried out with precision.
With all arrangements administered by Ryland Gray, we provide access to Web Based Valuation Statements. For the Employer and Trustee this can display a range of data from complete transaction records and valuations through to management accounts and Terminal Gratuity comparison. Branded in your company ‘livery’, it can be displayed in a variety of currencies and languages.
The Employee can view a complete record of their own, and their Employers’ contributions, the value of their account and the comparative value of accrued Terminal Gratuity. Annual hard copy statements are also provided.