Foreign and Offshore Plans
Usually very special considerations must be made for retirement plans for workers in operations outside of Puerto Rico and the United States. As a carbon copy of a retirement plan in the United States is rarely appropriate for operation in Puerto Rico, the same holds true for plans in other countries. Each country is very different and a close look at the practices and possibilities in those countries is required.
Contrary to common belief, many countries in the Caribbean do lend themselves to retirement plans that can be similar to 1165(e) and 401(k) plans, but the rules are different and the investment scenarios are very different. Sometimes offshore investment for these plans is a possibility and can be a great advantage to participants in the plans and other times domestic investment of contributions, in local currency, is the best alternative or the only alternative.
If you are a company with a facility outside of Puerto Rico and the United States and you would like to consider offering a retirement or thrift plan to your employees there, SGP
Consultants will:
· Discuss the retirement plan options and alternatives that you have in that country
· Present you with the market practices of other companies there
· Design a plan considering the investment options, the local environment, your employees, your objectives and your budget
· Work with you staff in the United States, or Puerto Rico and abroad to bridge the culture gap and set up effective relationships
· Find third party service providers that include legal counsel, record keepers, investment companies, trusts and banks in the country where your plan will operate.
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