Covered Persons

Employee Only

Advantage

It is a deferred-compensation plans that part of employee’s compensation over the employee’s service-providing years is deferred until a later period, retirement. This deferral meets following goals.

1. retirement need of employee including the rank-and-file employees
2. accumulation vehicle to enhance the participant’s normal saving
3. deferring taxation on deferred compensation until the income is received
4. maximizing the benefits for shareholder-employees while minimizing the benefit costs of other employees.

Available Scheme

Mandatory Provident Fund serves goals (1) to (3)
Voluntary Contribution from the Corporation on Mandatory Provident Fund meets goals (1) to (4)
Saving Life Insurance Policy achieves goals (2) to (4)

Art of Planning

The company normally has limited resources to cope with unlimited wants of employee.  Professionals should structure a plan that works for 

• the needs of owner and the business
• minimization of Administration Cost
  
• preventing abuses
  
• a budget that the corporation is not difficult to fund in a long term