Deborah Schembri

Managing Director and CEO, STM Malta Pension Services Limited


Occupational retirement pension schemes in Malta: Employers offering a workplace pension to their work force

Thursday 04th March 2021

In recent years the Malta Government has introduced tax incentives to encourage individuals in work to save for retirement through a pension scheme. With the focus now on both personal and occupational retirement pension schemes, employers of choice are using the tax incentives on offer to them to maximise employee benefits, at a considerably less increase to company expenses.

Reasons why your business should provide an occupational pension:

The advantages of providing a pension arrangement for your employees are far wider than simply helping them to achieve financial goals in retirement.

Benefits to you as the Employer

- A valuable recruitment tool to distinguish you from your competitors
- Improved employee engagement, motivation and productivity with a longer-term employer commitment that can reduce financial stress and wellbeing concerns
- Potential corporate tax incentives in the form of declaration for tax purposes of up to Euro 3,000 per employee per annum, plus a further tax credit of up to Euro 750 per employee per annum
- Greater retention and loyalty arising from a more paternalistic relationship
- Tax benign environment for contributions and growth
- Support and guidance from our specialist teams to make the most of the scheme

Benefits to your Employees

- Additional deferred remuneration from employer contributions
- Value for money investment, with costs of administration supported by the employer
- Better quality of life at retirement
- Peace of mind from taking control of saving for the future and providing for family
- A personal tax credit of up to Euro 750 per annum on personal contributions. A compounding investment    based in a jurisdiction with no tax on growth, helping pension savings grow faster
- Regular updates on how pension savings are performing to optimise financial planning
- Flexibility to have an early retirement lump sum equivalent to 30% of the total value (Pension       Commencement Lump Sum)
- Potential to access funds in cases of ill health
- Variety of choices at retirement including frequency of income payments
- Easy maintenance with contributions paid automatically through payroll
- Support and guidance from our specialist teams

What is the STM Malta Occupational Retirement Pension Scheme and what does it offer?

The scheme is an occupational pension scheme established under a master trust for multiple employers and is licensed by the Malta Financial Services Authority (MFSA). The scheme is operated by STM Malta Pension Services Limited which acts as the scheme trustee and the Retirement Scheme Administrator.
The scheme supports you and your employees both during the saving phase and following the employee’s retirement.

Control

You have control to tailor the scheme to meet your specific requirements such as:

- Which employees the scheme is available to
- Employee contribution rate(s) depending on your chosen factors such as seniority or length of service
- Employer contribution rate(s)
- Additional support in meeting administration costs
- Branding of literature to reinforce employee engagement

Time-saving

Leave it to the professionals. Save time by leaving the administration of the pension to us. We provide a full-service administration of the scheme that will continue to evolve to ensure that regulatory standards and high levels of service are maintained throughout the life of the scheme.

Once contributions are processed and paid to the scheme from your payroll system, we manage the allocation of contributions to each employee’s pension account and invest funds accordingly.

Our team is dedicated to maximising your engagement with your employees and will provide you with literature and communications to get the best from the scheme.

STM Malta Pension Services Limited is an award-winning pension provider in Malta. Established in 2010, we are the major Pension Administrator in Malta, and form part of STM Group PLC, a multi-jurisdictional financial services group. With over a workforce of 50 pension professionals at our office, we handle over 8,000 customers and administer approximately Stg 1.6 billion in assets. Our expertise in Pensions Administration locally and internationally positions us, at the forefront of any competitors. We put our customers at the heart of everything we do and strive to provide excellent customer outcomes.

STM Malta Pension Services Limited provides a retirement saving solution for employers that is simple to set up and use, great value for money and delivers excellent support to employers who want to invest in a long-term relationship with employees and benefit from the loyalty and commitment that this brings to your business.

For a no-obligation appointment and to learn more, please contact our Relationship Manager for Occupational Pension Schemes, Gerald Xuereb on 7943 3207 or email us at maltapensions@stmmalta.com

STM Malta Pension Services Limited is registered as a Retirement Scheme Administrator with the Malta Financial Services Authority (MFSA). The STM Malta Occupational Retirement Pension Scheme is licenced by the MFSA.  The licencing of any Scheme by the MFSA does not imply an opinion from the MFSA regarding the suitability of the scheme for any individual.  The STM Malta Occupational Retirement Pension Scheme does not offer guaranteed benefits and the level of pension available on retirement will depend on the level of contributions and the performance of the underlying investments.


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