The VM Pensions Approved Retirement Scheme
A personalised pension
plan that caters to your
What is an Approved Retirement Scheme (ARS)?
An ARS is a personalised pension plan that provides a tax-free way of saving for retirement. Self-employed persons, professionals and contract workers can benefit from the most tax efficient vehicle to save for retirement.
The Benefits of an ARS
Contributions made to your ARS are tax deductible; meaning that they are taken out before income tax is applied. This lowers your income tax payment.
Persons can contribute up to 20% of their annual income per year to an ARS. We encourage persons to maximise this limit as it reduces your income tax burden.
Tax-free Investment Gains
All investment gains are tax-free with no time limit. This compares favourably to Long-term Savings Accounts (LSA's) where the tax-free limit is $1M per year to a maximum of five years.
Eligibility for an ARS
To become eligible to join our ARS persons:
- Should be between the age of 18-64 years
- Be a resident of Jamaica
- Should not be an active member of another ARS
- Should not be an active member of a Company sponsored
Why is an ARS a better option than a company-sponsored pension plan?
Many small and medium sized entities have long considered a pension plan for their valued long serving staff members but were concerned about the numerous and time-consuming legal and regulatory requirements. The solution is an ARS which eliminates these challenges;
- An ARS offers a simpler and more cost effective structure
- No implementation time to setup as the enrollment process is immediate
- There are no legal and regulatory reporting requirements
- Contributions made by the employer are tax deductible
- A more flexible arrangement as it allows the employer the ability to commence, cease, increase, decrease his contribution level based on economic circumstances
- Contributions from the employer are not mandatory