Company pension scheme

What is occupational pension provision?

The company pension scheme is an important part of old-age provision in Germany and Switzerland. It is a type of pension plan offered by employers to their employees. The aim is to offer employees further protection in old age that goes beyond the statutory pension.

Types of company pension scheme

Various types of company pension schemes are common in Germany and Switzerland. These include direct commitments, provident funds, pension funds and pension funds. It is important to consider the individual advantages and tax aspects of each of these forms. A direct commitment is a type of company pension plan in which the employer promises the employee a lifelong pension. The money for the pension is paid into a separate fund, from which benefits are later paid to the employees. Pensionskassen and pension funds manage the employees' money independently and invest it for old-age provision.

Advantages of occupational pension provision

There are advantages to company pension schemes for both employees and employers. Employees receive benefits from additional old-age provision that goes beyond the statutory pension. They can also benefit from tax concessions and subsidies. Employers can increase their attractiveness as an employer and improve employee retention through company pension schemes. Company pension schemes also contribute to the financial security of employees in old age and thus reduce the risk of poverty in old age. There are legal regulations in Germany and Switzerland that oblige employers to offer or at least support company pension schemes.

Tax aspects in relation to company pension schemes

There are tax advantages for company pension schemes in Germany and Switzerland. For example, it is possible to deduct contributions to company pension schemes from tax. Normal income is also subject to higher taxation compared to the later pension from the company pension scheme. However, it should be noted that tax regulations may differ depending on the country and type of pension.

Regulation of company pension schemes

In Germany and Switzerland, there are various laws and regulations that govern company pension schemes. In Germany, the Occupational Pensions Act (BetrAVG) is decisive for company pension schemes. Among other things, the employer must comply with minimum standards when implementing a company pension scheme. The Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG) regulates occupational pension plans in Switzerland. It sets out the framework conditions for occupational pension provision and regulates, among other things, the minimum benefits that employers must offer their employees.