Montfort International has launched a venture for members of defined benefit schemes who are moving abroad.
The overseas specialist advice firm created Monfort Consult “to provide support to pension schemes and trustees on the complexities faced by their ‘overseas-overlooked’ members, with more and more people choosing to spend part or most of their working life in different jurisdictions”, the company said in a statement.
Montfort Consult is run by pensions consultant Jonathon Webb, who joined Montfort in late 2017.
“These members have been long identified as being ‘overseas’, deemed too difficult to advise and thus excluded from benefits. Or, they are included but left to fend for themselves and source suitable advice in their new jurisdiction,” he said.
This small but significant population may find themselves vulnerable as companies and scheme trustees overlook their responsibility to ensure sufficient support or advice surrounding incentivised pension transfers or benefit modification exercises for their overseas members, the advice firm stated.
Montfort Consult is currently speaking to several different parties, including pension managers, finance directors, pension scheme trustees, managing directors, consultants and regulator to raise the needs of this “overlooked population”.
Defined benefit pensions pay out a secure income for life which increases each year. The employer contributes to the scheme and is responsible for ensuring there’s enough money at the time the employees retire to pay for the pension income.