Common use of Narrow Participation Retirement Fund Clause in Contracts

Narrow Participation Retirement Fund. A fund established in the British Virgin Islands to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1. The fund has fewer than 50 participants; 2. The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; 3. The employee and employer contributions to the fund (other than transfers of assets from retirement and pension accounts described in subparagraph A(1) of section V of this Annex II) are limited by reference to earned income and compensation of the employee, respectively; 4. Participants that are not residents of the British Virgin Islands are not entitled to more than 20 percent of the fund’s assets; and 5. The fund is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in the British Virgin Islands.

Narrow Participation Retirement Fund. A fund established in the British Virgin Islands to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1. The fund has fewer than 50 participants; 2. The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; 3. The employee and employer contributions to the fund (other than transfers of assets from retirement and pension accounts described in subparagraph A(1) B.1. of section V IV of this Annex II) are limited by reference to earned income and compensation of the employee, respectively; 4. Participants that are not residents of the British Virgin Islands are not entitled to more than 20 percent of the fund’s assets; and 5. The fund is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in the British Virgin Islands.