RATS Infestation in Jersey ... must be from Guernsey?

Retirement Annuity Trust Schemes (‘RATS’) have existed in Guernsey for some years and following a recent amendment to the Income (Jersey) Law 1964 (the ‘Law’), Jersey now offers the opportunity for Jersey residents to save for their retirement by way of a trust.

As with other pension vehicles, depending on your age, the Law stipulates the maximum annual sums which you may contribute to a RATS. Retirement benefits can only be paid by the trustees to you once you reach the age of fifty (50), but not after you reach seventy-five (75). However, you may receive retirement benefits before attaining your fiftieth birthday where:

(i) you become incapable through infirmity of body or mind to carry on your occupation or any occupation of a similar nature for which you are trained or fitted; or (ii) your occupation is one in which persons customarily retire before attaining the age of fifty.

Retirement benefits can only be applied to you by way of an annuity or an annuity and a lump sum payment (such sum must not exceed 30% of your contributions). No additional contributions can be made once the annuity is taken.

Please click on the pdf icon below to open the full free document.