The VM Pensions Approved Retirement Scheme

A personalised pension
plan that caters to your
retirement goals.

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

Tax-deductible Contributions

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.

Higher Contributions

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
    pension plan

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