When recruiting or retaining deserving employees, the subject of employee benefits has become an unavoidable one.
From the payment of wages following incapacity for work due to illness or accident to the contributions paid jointly by employer and employee to guarantee an income when the employee retires, what tools are available to employers?
Each company is legally required to elect a committee comprising at least one representative each of the employer and the employees, who together with the employer decide on the pension arrangements to be made for both the risk and savings benefits of all insured persons in the company. This body has the option of defining objective categories which will benefit from different benefit levels.
What is an objective category?
No-one is equal when it comes to age, position or salary level within a company. In such cases, the employee benefits committee may decide to integrate the above criteria as a condition for entry into a benefits plan that is more comfortable than the BVG minimum.
What about seniority within the company?
Length of service is also an objective criterion that can enable the insured to benefit from a higher retirement capital when he or she stops working.
Can the employer impose blocking conditions in the event of early departure from the company?
When the money is already in the employee’s fund, it is not possible for the employer to block the pension capital, as is the case when an ordinary financing model is used.
On the other hand, if the employer promises a one-off payment after the insured has reached 5 or 10 years’ seniority, for example, the employee must reach the condition set out in the employment contract rider in order to claim the full payment directly into the pension fund. This type of specific solution can be implemented by Argos Group following a full technical analysis.
Don’t hesitate to contact us to discuss your requirements!
