I.O.R.P. FEATURES |
1. Legal entity non-profit body under Private law, in the name of which the assets of the insured members are maintained (in Bank accounts and financial services) |
2. The purpose is the provision of supplementary insurance in the form of ‘One time, Last time’ principle or Pension, aside of the one provided by the mandatory social insurance. Additionally, the ability of extra provisions towards the insured members (Health, Solidarity etc.) |
3. Οperation bases on the capitalization of contributions of each insured member and the cumulative returns deriving from their investments. |
4. Strong Participation of employed members when it comes to the Retirement provision management (even in the event in which there is participation on behalf of the Employer) which ensures a proper management and company governance. |
5. Administrative and financial severability, non-dependent by the State |
6. Ease in defining a flexible contribution and provision plan that is adapted to the profile and the needs of the insured body of members under the prism of equal treatment. |
7. Is subjected to the control of (3) State Supervising Authorities (Department of Occupational Safety at the Ministry of Labor, National Actuarial Authority & Capital Market Commission) and by independent parties (Statutory Auditors, Internal Auditors) under a strict legislative frame that abides by the European Directives. |
8. Mandatory hiring of a Depositary, an Investment Fund Manager and an Investment Fund Committee to ensure the professional management of all Assets. |
9. Due to its non-profit nature and its long-term investment horizon, there is no need for high risk investment decision making. |
10. The current legislation and the statutory provisions of I.O.R.P., in combination with the maintenance of the insured members’ registry including all necessary demographic data, enable the design of an accurate cashflow plan (contributions/provisions). That way, there is proper allocation of the insured member’s available assets and also managed on a long term basis and with the ability to choose a long-term investment. |
11. The sole factor that can lead to a potential investment loss, is the one relating to a “detrimental” investment choice on behalf of the manager, which is eliminated by the restrictions and the security terms defined by the legislative and supervising frame. |
12. Investment returns increase the stocks – which cannot be used to cover operational costs – of the insured members entirely. |
13. A mandatory division between the Identical Funds and Reserves of Individual Shares, sets a restriction when it comes to the volume of operation cost and also forces the Board of Directors of a I.O.R.P. to follow a policy as to its minimization. |
14. Contributions (Legal and Natural entities), are 100% taxation free and the provisions deriving from a ‘pay-as-you-go’ scheme are deposited in full and are taxation free. |
15. The employer holds the right to enforce a payroll policy when it comes to Contributions on their side, by defining the scale in the amount of paid contributions on their end in case of an early termination. |
16. The combination of Regular and Special Contributions under a friendly taxation status quo, provides an Insured member with flexibility as to their Savings’ planning and helps to ensure a sufficient supplement in the percentage of allowance they receive by Social Security (1ο pillar). |
17. Ensuring a transparency principle via the creation and maintenance of private e-shares, provides the insured members with a safe and everyday access to their individual accounts and prevents a potential tax evasion. |
18. The enablement of an alternative way to a provision deposit in the form of Pension (instead of ‘One Time, Last Time’), ensures that insurance contributions will continue to be managed in a professional manner and also, that high return gains will be achieved so as to contribute to gaining a higher percentage in extra duties allowance in pension. |
19. Possibility of transferring rights of an insured member, such as their individual portion stock, in another I.O.R.P. within Greece or in countries within the European Union. |
20. I.O.R.P. is a widely known international institution with proven results based on past experience |