Director / Executive Pension Plan (EPP)
Executive Pension Plans are tax-efficient savings plans set up by the company in which the contributions build up in a tax exempt fund. These are used at retirement to provide often enhanced tax free cash and/or a pension depending on the scheme.
They are normally established by company directors for their own benefit, but they then frequently include other valued employees.
Effectively, they are money purchase occupational pension schemes. They allow payments from an employer to be paid into a pension fund which is set up under trust, with the trustees responsible for the day-to-day administration.