Cases

These completed cases provide an accurate reflection of our practice:

  • Case 1: Optimization For Global Board Member

    Facts

    Our client had in the past worked and lived in six different countries. He had acquired separate Corporate Pension Claims at all four employers.

    Issues

    Our client never had the opportunity to really look into his Pensions and Wealth Management. Our client asked our company if we could provide global insight and optimization.

    Solutions

    It turned out that whereas our client had been advised correctly in South-Africa, that especially his US based Corporate Pensions were not in his best interest. The US advisor clearly had not been acting in the best interest of our client. He had provided plans with an excessive risk coverage and cost levels which were five times the normal level.

    Regarding his Wealth Managament we noticed that an accurate Personal Risk Profile was lacking and subsequently an optimal investment approach.

    Thus we advised our client how to optimize his Global and especially his US based Corporate Pension Claims. Plus how to create Wealth Management within and outside of his Corporate Pension Plans in such a way that it reflects his Personal Risk Profile.

  • Case 2: Optimization For Financial Director in London City

    Facts

    Our client had worked and lived in The UK for many years and had several kind of Corporate Pension Claims. As he expects to retire on mainland Europe, he was wondering what would be the best approach towards those claims.

    Issues

    The central issue was if our client should transfer all his Corporate Pension Claims to a QROPS, as advised by several international consultancy firms.

    Solutions

    After having read the reports of other consultancy firms and having completed our own analyses, it turned out that tax benefits as projected in those other reports were not accurate.

    Regarding certain elements a transfer to a QROPS would even substantially increase the income tax exposure. Certain projected increased investment results were furthermore not realistic due to the Personal Risk Profile of our client.

    Finally it was advisable not to switch annually conditionally indexed guaranteed DB Pension Claims for not guaranteed investment based DC Pension Claims.

  • Case 3: Optimization For High Potential Manager In Europe

    Facts

    Our client had been working already in three different countries and was thus keen on creating an optimal Pension Planning.

    The company she now worked for offered a ‘Cash Pension Plan’ meaning that the ‘Pension Allowance’ was taxed as regular wages after which the employee could freely decide what to do with the net capital.

    Issues

    Our client requested our company to optimize her Corporate Pensions and Wealth Managament.

    Solutions

    Regarding the optimization of the Corporate Pensions we were able to convince the employer of the substantial negative impact of a ‘Cash Pension Plan’ and assisted in setting up a regular Corporate Pension Plan with highly relevant tax benefits.

    Regarding the Wealth Management it was a pleasure to hear from our client that due to our Investment Memorandum, she now felt that she understood the basics of how to invest and felt not vulnerable anymore.

  • Case 4: Optimization for Specialist at NGO

    Facts

    Our client had in the past worked for several companies within the EU and had several related Corporate Pension Claims.

    Issues

    As she started to work for an NGO, the question was how to treat the existing Corporate Pension Claims. She informed us that the new workrelated Pension Plan offered a guaranteed Pension Claim and asked if she should transfer the exiting Pension Claims into the new plan.

    Solutions

    Our client had been correct in stating that the NGO has said that the Pension Claim would be of a guaranteed DB nature.

    However, after having read all legal documentation about the plan, it turned out that initially there was only an investment based DC Pension Claim and that only after 5 years of participation there would be an entitlement to a guaranteed DB Pension Claim.

    In case she would have transferred the existing guaranteed Pension Claims into the investment based Pension Claim and would not remain at the NGO for at least 5 years, she would not have had a guaranteed DB pension claim and the previously existing annually indexed guaranteed Pension Claims would have been changed into investment based Pension Claims.

    As calculations showed that the transferable value of the existing Pension Claims was not enough to on short term have the equivalent of 5 years of participation, the transfer was not implemented. The existing DB Pension Claims remained intact.

  • Case 5: Optimization For Young Expats In The Netherlands

    Facts

    A young couple moved to The Netherlands after having lived and worked previously in The UK and Switzerland.

    During their first 6 years in Holland they did not have any Corporate Pension Claims. Recently their employer introduced a Corporate Pension Plan with a rather low amount of annual premium for Old Age Pensions. The Next of Kin Pension coverage was also modest as our clients have three young children.

    Issues

    Due to their past they had a substantial lack of State Pensions, Corporate Pensions and Risk Coverage.

    Solutions

    Regarding State Pensions they did not acquire additional claims as that was not attractive.

    Regarding Corporate Pensions it was within the plan not possible to use all allowed tax benefits. Thus they infused the maximum allowed additional premium within the plan.

    In order to optimize their tax position they each acquired a Private Pension Plan in order to use the not yet used tax benefits of the last 6 years. And use it likewise in each new year.

    Finally they acquired a Private Risk Coverage which pays-out a onetime net € 500.000,- if one of the parents might pass away within the first 10 years.

  • Case 6: Optimization for Directors in Singapore

    Facts

    Due to our international network we were contacted by a Lawfirm in Singapore. They represented a number of Directors who worked for a Global Oil Company in Asia Pacific.

    Issues  

    The issue was i.e. that the Company preferred to unilaterally change the guaranteed Corporate Pension Claims into not guaranteed investment based Corporate Pension Claims. This without any compensation nor discussion. Which scenario had substantial negative implications for the Directors.

    Solutions

    On behalf of our clients we have described in an objective manner what these days is considered to be a deemed suitable Board Level Corporate Pension System/Type of Claims/Amount of Claims and correct process for possible change. Furthermore our calculations showed objectively what the proposed change would mean for our clients. Thus providing insight in feasable goals in order to get the best new Board Level Pension Plan. 

  • Case 7: Optimization for Global Directors

    Facts

    A Global French Company had not been able to focus on the pension situation of their Regional Directors. 

    Issues  

    Thus the Company asked us to provide insight and optimization within deemsed suitable International Corporate Standards.

    Solutions

    On behalf of the Company we have objectively described what is deemed suitable and assisted the Company as well as the Expats with the implementation of the change by providing tailor-made consultancy to each Expat. 

  • Case 8: Optimization of German Corporate Pension Plan

    Facts

    A European Company contacted us about questions regarding their German Corporate Pension Plan which also included their Directors.

    Issues  

    After research it appeared that the coverage did not meet deemed suitable standards regarding the type of Pension System nor the amount of Pension Claims.

    Solutions

    On behalf of the Holding we have assisted in introducing the correct type of Pension System and the correct amount of Pension Claims in Germany. During which implementation we hired local actuarial/legal/tax professionals. In this process we also changed the Actuarial Firm as the new firm provided substantial better services for half the price.

  • Case 9: Optimization For Expats At International Oil & Gas Exploration Company

    Facts

    The company preferred a lean and mean approach resulting in a 'Cash Pension Plan' for the employees and expats.

    Issues

    A 'Cash Pension Plan' is no official Pension Plan and thus lacks the related coverages and has no tax benefits. Both elements have substantial negative impact.  

    Solutions

    After we had explained the benefits of a formal Pension Plan to the Board in an objective manner and that in the future we would take care of all related issues, the Board gladly co operated in installing the best Pension Plan for both employees and expats.

  • Case 10: Optimization for Global Director Emigrating Back To Australia

    Facts

    After having lived and worked in Australia, USA, The Netherlands and UK, our client wished to retire in Australia.

    Issues

    Our client requested optimization of especially his International Corporate Pensions and how to best implement his private capital.

    Solutions

    After having analysed the applicable Double Tax Agreements, we first optimized the DB pension claims. Then we carefully assessed the Personal Risk Profile of our client and proposed an approach using all available flexibility and giving the largest possible amount of his private capital additional time to be invested.

  • Case 11: Optimization for Global Board Member of Fortune 500 Company

    Facts

    Our client requested insight and if possible optimization of the older and current pension claims.

    Issues

    The company had tried to provide service by installing an International Pension Plan and in Europe a 'Cash Pension Plan'.

    Solutions

    Regarding the past the substantial investment based pension capital lacked a Personal Risk Profile and an optimal Investment Mix. After we had established the Personal Risk Profile we looked into all Investment Funds options and recommended the correct Personal Risk Profile and Investment Selection.

    Regarding the current situation we explained why the 'Cash Pension Plan' was no pension plan at all and had very negative (tax) implications. After which the company was informed of our advice in order to implement a deemed suitable Pension Plan with optimization of tax benefits.

  • Case 12: Correction Of Merger Related Expat Pension Relocation

    Facts

    A global company had acquired another company in which process executives relocated from several countries to the new regional home office country.

    Issues

    In the process the previous pension consultancy firm had neglected to make sure that the corporate pension plan transition of these executives went according to a well structured and correct plan. Thus both the company and the executive expats were in the dark of what would amount to the correct kind and amount of corporate pension claims.

    Solutions

    By comparing the former three national corporate pension plans with a proposed new corporate pension plan, we were able to advise our client how to take care of omissions and implement them in the best possible and efficient manner.