Trusts: Overview

Nordben Pension Trustees provides trusteeship services to Provident Funds, International Pension Plans, Expatriate Pension Plans and Third Country National Pension Plans.

The Plans could be Defined Benefit, Defined Contribution or Group Risk Plans.

A Trust is a legal structure where assets are held by one person for the benefit of another. In the case of pension plans, the employer creates a Trust for the benefit of employees and their dependants. The employer appoints Trustees to look after the assets and to ensure the benefits are paid.

The Trust document is very flexible so that it can fulfil a raft of employee objectives.

Trusts can be used to hold Nordben insurance policies or other assets.

Examples:

Provident Funds

These are often set-up for seafarers and offshore workers as a Trust. Nordben Pension Trustees act as Trustees, and the day to day administration is carried out by our shareholder Storebrand, a company with 15 years experience in this area. The investment of these Funds is usually in a Nordben insurance product which can vary from a guaranteed fund to a dedicated unitised fund.

Defined Benefit Funding

This is generally set-up for expatriates as a Trust where a defined benefit promise has been given. The client funds the Trust and monies are usually invested in a Nordben insurance plan. The client usually works with their actuarial advisor in determining the level of funding.

International Pension Plans, Expatriate Plans, TCN Plans and Group Risk Plans

Nordben insurance contracts are held by the Trustees. The Trust structure is used to solve one of the following:

• overcome regulatory issues (where Nordben cannot contract directly)
• additional administrative support is needed by the client
• the tax structure assists from a tax standpoint.

Nordben Pension Trustees Limited is regulated by the Guernsey Financial Services Commission under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000 and is a wholly owned subsidiary of Nordben Life and Pension Insurance Co. Limited.