Investor Choice Superannuation Scheme
At last, a good Superannuation option.
The Investor Choice Superannuation Scheme (ICSS) is a defined contribution scheme, registered in New Zealand under the Superannuation Schemes Act 1989.
ICSS is a cutting edge Superannuation Scheme which is structured to allow us, as your advisor, to be able to design an individually tailored portfolio from a preferred list of investments authorised by the Trustee and Investment Manager. This allows us to take into account your personal circumstances and retirement objectives.
The Scheme is also a Qualifying Recognised Overseas Pension Scheme ('QROPS') for the transfer of UK pensions. The Scheme is not a Portfolio Investment Entity ('PIE') for tax purposes, nor is it a KiwiSaver scheme.
We believe this a superior scheme for the transferring of UK Pensions or receiving transfers from other NZ Superannuation Schemes.
An advantage for UK Pension Transfers is that we can tailor your portfolio once the monies are here, taking into consideration currency issues and your personal circumstances and plans. We can therefore manage some of the currency issues as we invest directly into foreign currencies to minimise currency risks and can control when to transfer into New Zealand dollars.
With ICSS there is also no requirement to buy an annuity at retirement.
Taxation
As a registered superannuation scheme, the fund currently pays tax on its net income at 30%. It falls under the Foreign Investment Fund tax regime and pays tax on gains on the Fair Dividend Rate (FDR). Currency gains from either cash or overseas investment funds, whether realised or notional are taxable. Members are not generally liable for New Zealand income tax on their investment returns.
Facts about the Scheme
- Single Trust Deed and prospectus.
- Generic investment statement.
- Annual consolidated scheme accounts.
- All member records are maintained on Aegis with fees being charged based on fund values.
- Richard Harden Investment Services has a preferred list of investment assets and investment methodology which has been approved by the Trustee and Investment Manager.
- The member portfolio bank account loaded to Aegis is the Trustee account for withdrawals. The Trustee will approve withdrawals, receive the funds and then pay these to the member.
- A member’s retirement age is 55 unless otherwise agreed with the Trustee.
- Members may request a full or partial withdrawal of their member account at any time after reaching 55, unless a lock-in period beyond age 55 is required, for example as part the terms of a pension transfer.
- Members may request a withdrawal benefit of up to 20% of their Member Account prior to age 50 and 40% between the age of 50 and 55.
- QROPS rules apply for UK pension transfers.
- The Scheme was registered in July 2009 and is a registered QROPS for the transfer of UK pensions.
For further details regarding the Investor Choice Superannuation Scheme please click here or contact our office