For holders of Bermudian-American citizenship, or for Americans married to Bermudians The Argus Group has designed a 401(k) plan particularly for them.

Argus — through its subsidiary Bermuda Life Insurance Company Limited and in partnership with US-based retirement services company TAG Resources, LLC — has announced the launch of the Argus Connections 401(k) Advantage Plan, a new retirement savings product for US spouses of Bermudians and dual citizenship holders. This product caters to the requirements of US and Bermuda pension and tax legislation.

While the number of dual citizens is uncertain, according to Immigration Department figures there are 1,085 spouses of Bermudians. “And a portion of these will be employed.”

Argus has offered a version of its 401(k) product in Bermuda to US nationals on work permits through participating employers since September 2011.

The insurer and financial services company says that their new plan complies with US Internal Revenue Service requirements and is a cost-effective method of long-term savings available to employees of participating employers in Bermuda. It allows US citizens, including US spouses of Bermudians and dual citizenship holders, working and living in Bermuda, to take advantage of certain approved tax relief under section 401(k) of the US. Internal Revenue Code. Contributions made to the plan, as well as the income earned, will be exempt from US income tax until the money is withdrawn at retirement.

Lauren Bell, executive vice-president, life and pensions at the The Argus Group, said: “After listening to our customers, we partnered with world-class providers to develop a product that is now compliant with US tax law. We know that companies want a world-class retirement product for their US employees, including those who are dual citizens or spouses of Bermudians who must comply with Bermuda pension legislation. We also know that those employees want a tax compliant retirement savings vehicle as if they were working in the United States.

“So, we did the research and created this product just for those customers, as we know this is important to them. It’s part of our commitment to our client relationships.”

Troy Tisue, president of TAG, which is based in Knoxville, Tennessee, said: “We’re proud to be working alongside Argus on this. This is a ground breaking programme that is going to help a lot of people. The tireless dedication of the Argus Team over the past few years is what made this 401(k) offering possible.”

Ms Bell said the product has been in the pipeline for the last few years. “Argus has been working ... to create a savings product that is compliant with both Bermuda and US tax and pension legislation. What was foremost in our minds is that we wanted companies to be sure we offered a world class product for their employees.”

She continued: “So we partnered with TAG Resources. They have worked very diligently with us on this for several years. It was a matter of ensuring the pension continued to meet the requirements of the Bermudian legislation. We have been able to accommodate that,” she said.

“We knew there was a need, and we have a number of clients who have signed up,” she said. “Once an employer has put a 401(k) in place, any employee can participate. Employers want to ensure they have the best possible solution for their employees.”

For further information visit: www.argus.bm.