Company pension schemes
Implementation methods for company pension schemes -
Think about the future today
Implementation methods for company pension schemes -
Think about the future today
We advise and support you in the setup, redesign, or harmonization of your company pension plans and create customized concepts tailored to your needs. We are happy to help you achieve risk minimization while maintaining benefit levels.
Based on our projections of liabilities under various scenarios, you receive planning control and security. We also highlight potential risks in benefit commitments and risk coverage (e.g., reinsurance). Naturally, we ensure compliance with all relevant legal foundations (Company Pension Act, Pension Fund Act, Income Tax Act, Income Tax Guidelines, etc.).
We would be pleased to introduce you to flexible company benefit models or adapt existing pension plans. The advantage here is that your employees can choose from several options according to their individual needs.
We ensure clear and objective communication of your pension plans by creating suitable brochures for your employees and company management. If required, we can also conduct on-site employee events. Furthermore, we help you make your pension plans more attractive to ensure they are valued by your employees.
Our team reliably handles the ongoing administration of your pension plans for selected processes. This primarily includes the preparation of individual annual benefit statements, benefit audits regarding eligibility and amount upon occurrence of a claim, the determination of vested amounts in the event of early departure, the exchange of information with insurance companies and pension funds, the management of pensioner records, and communication with beneficiaries and claimants.
For your employee secondments, our partners at Abelica Global are available to outline the tax and labor law requirements for company pension schemes in the respective countries.
The contributions for your employees' severance claims, which are outsourced to a company pension fund, often yield only low returns. In our annual fact sheet, we provide you with general information and a description of services, as well as current fee structures and the investment performance of all pension funds over recent years. We would be happy to discuss our fact sheet with you in detail and, if necessary, inform you about the legal framework for switching your pension fund provider.
Depending on your company structure, financial planning, liquidity, and the employees covered by the pension scheme, we will discuss the optimal models with you in a personal consultation.
A performance promise by the company, which can be defined-benefit or defined-contribution. Primarily used to retain key employees. Also suitable as a retirement model for shareholder-managing directors. For partnerships and sole proprietorships, a pension commitment is only possible for employees.
The formation of provisions represents a tax-deductible expense. No payroll taxes are incurred. For the employee, no payroll tax or social security contributions are due during the active employment period. During the payout phase, pension payments are taxed together with any statutory pension.
Serves to hedge risks (occupational disability, death, longevity) arising from the pension commitment and to finance pension benefits.
Insurance premiums are considered operating expenses and are exempt from payroll taxes and social security contributions. The company must form pension provisions; the reinsurance policy improves the balance sheet.
The minimum collateralization of pension obligations in accordance with Section 14 of the Income Tax Act (EStG) can be achieved through securities defined in Paragraph 7, Item 4, or through a classic life insurance policy as defined in Section 300, Paragraph 1, Item 1 of the Insurance Supervision Act (VAG) 2016, or an investment-oriented life insurance policy as defined in Section 300, Paragraph 1, Item 5 of the VAG 2016.
The company pays annual premiums of €300 into a life, accident, or health insurance policy for the employee. Employer contributions must be granted to all employees or to employees defined by objective group criteria. The labor law principle of equal treatment in accordance with Section 18 of the Pension Fund Act (BPG) must be observed.
The premiums are operating expenses and are exempt from payroll tax and social security contributions. The capital payout is tax-free for the employee.
Unlike corporate collective insurance, there is no guaranteed interest rate, although a guaranteed pension can be selected as an option.
When new annuity tables are published, they become the basis of the contract and replace the old ones.
The same limits regarding exemption from payroll tax and social security contributions apply as with corporate collective insurance.
Employer contributions of up to 10% of the total payroll (defined contribution) or pension contributions of up to 80% of active salary (defined benefit) are tax-deductible. Employee contributions can be claimed as "special expenses" (Topf-Sonderausgaben) in accordance with Section 18 of the Income Tax Act (EStG). (Note: This only applies if personal contributions were already being made before January 1, 2016. The option to claim these as special expenses ends in 2020.) For employee contributions up to a maximum of €1,000 per year, a state subsidy can be requested in accordance with Section 108a of the Income Tax Act (EStG). Only 25% of pensions derived from non-subsidized personal contributions are taxed, together with other pension income. Pensions derived from subsidized personal contributions are entirely tax-free.
The guaranteed interest rate agreed upon at the time of contract conclusion applies until the contract expires. The annuity table valid at the time of contract conclusion is guaranteed for life.
In most cases, we can easily process the personnel data you provide regardless of its structure, meaning there is no additional administrative effort for you.
Thanks to our proprietary calculation software, which we develop and refine continuously, we are able to account for complex regulations and tailor the structure of output files to our clients' specific needs.
If required, we can also communicate directly with your tax advisor or auditor.
Think about the
future today
