MORE changes to the Island’s pension rules could be included in the States annual Budget in December.

A working party including Treasury Minister Terry Le Sueur (pictured), Comptroller of Income Tax Malcolm Campbell, Jersey Finance, the Jersey Financial Services Commission, the Jersey branch of the Personal Finance Society and independent financial advisers have been discussing possible amendments to provide Islanders with better opportunities to save for retirement.

In last year’s Budget Article 131 of the Income Tax Law was amended to enable local pension providers to offer
Retirement Annuity Trusts or RATs. Since then at least five firms have developed schemes suitable for either individuals, or groups under a ‘master trust’.

The RAT removes the previous requirement to purchase an annuity from an insurance company but does require professional trustees who must be regulated by the JFSC. One significant benefit is that the annuity can be passed on to the member’s estate after death and an annuity equivalent paid to a spouse.

However, following the withdrawal of Norwich Union last year, Islanders have relatively few options compared to people living in the UK.