Sections

KPMG launches 'international' pension fund

LUXEMBOURG - International accounting firm KPMG has become the latest group to set up a Luxembourg based international pension scheme for its partners and managers under 1999’s SEPCAV/ASSEP legislation.

The group is also exploring the possibility of opening the fund out to employees within its entire international operations, although primarily the fund will only be open to partners and managers from other countries.

Using a purpose-built SEPCAV provided by Lombard International Assurance in Luxembourg the group will firstly open the fund to its 17 partners based in the Grand Duchy.
On July 1, the 26 managers of the group’s Luxembourg operations will then have access to the plan.

KPMG will inject 20% of a partner’s salary into the fund with managers receiving a 5% amount as a top-up to salary.
The structure will consist of one fund with different sub compartments for varied investment profiles: “It is really as flexible as a normal fund – but for pensions, so you can’t take out the money. But we do have a flexible pensions age between 50 and 60, “ says Karin Riehl, partner at KPMG in Luxembourg.

Riehl adds: “ The fund is only at present for audit, management consulting and corporate finance partners and managers, and only for KPMG staff, not KPMG aligned companies as yet, because they have different partnerships structures.
“ The company contributions will be on top of salary at least for the managers, because the partners pay themselves - so it is more of a tax driven thing. “

She says the plans will first be put to other KPMG groups and then expanded to long-term employees in non-management positions, but notes that this will involve examining retention numbers, etc.

John Li, managing partner of KPMG in Luxembourg, comments: “ The good collaboration we enjoyed from the CSSF and IGSS (Luxembourg authorities) made possible the launch of a scheme which was long overdue for the partners and managers of KPMG. The big challenge now is to convince our European and international colleagues of the benefits of joining our Luxembourg SEPCAV.”

The creation of the KPMG/Lombard SEPCAV represents the most significant development in terms of the creation of a pan-European pension fund since the formation of Anglo-Dutch multinational Unilever’s Luxembourg based ASSEP early last year.

It follows the appointment of the former head of Mercer’s European consultancy practice Geoffrey Furlonger to Lombard as director of pension services last summer.

Legal advice for the SEPCAV’s creation was provided by Robert Hoffmann of Beghin & Feider/Allen & Ovary and Lyn Spielmann of Etude Wildgen, Spielmann, Metzler & Ries/K-Legal International.

KBC owned Kredietbank in Luxembourg will carry out the custody for the fund.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2474

    Asset class: All/Large Cap Equities.
    Asset region: Global Developed Markets.
    Size: $150m.
    Closing date: 2018-09-25.

Begin Your Search Here