What to consider? A corporate pension is formed in several ways: only by deducting funds from the employee or exclusively from the employer, or by shared participation of both parties. In any case, the prospects for this type of payment are impressive.
In this article:
What is a corporate pension?
Methods of calculating corporate pensions
How does a corporate pension work?
Conditions for receiving a brazil mobile number list corporate pension
The procedure for assigning a corporate pension by the employer
Options for forming a corporate pension for older and younger employees
Examples of corporate pension schemes
Examples of formation and accrual of corporate pensions
Corporate Pension Prospects
Frequently asked questions about corporate pensions
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What is a corporate pension?
The corporate pension is based on the principle of joint contribution of the employee and the employer company to the creation of non-state pension provision. This means that not only the staff cares about their future income in retirement. The employer also makes contributions to the pension needs of the employees.
It is important to note that the corporate pension does not affect the size of the state pension, and the employer continues to make mandatory insurance contributions to form the latter.
What is a corporate pension?
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Some companies include in collective agreements a condition for paying a certain amount to former employees-pensioners, for example, once a quarter in the amount of 500-1000 rubles. However, such payments cannot be considered a significant supplement to the pension and do not replace the corporate pension program.
The corporate program is implemented with the participation of non-state pension funds. Different companies have different corporate pension programs, which are based on one of three schemes.
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Methods of calculating corporate pensions
If a company cannot allocate sufficient funds for the future non-state pension of its employees, involve the staff in joint participation. In other words, let the employees, and not just the organization, contribute their funds. The amount of the employee's and the company's investment is determined by the person's length of service, their contribution to business results, as well as the category to which they belong (worker, specialist, middle or senior manager), and year of birth. Based on these factors, companies most often offer three options.
The employee himself allocates funds for the pension
This option is most often offered to those who have not worked for the company for long and have not yet accumulated the length of service at which the employer begins to allocate funds for a pension. In this case, the organization does not bear any costs, but helps the employee save for the future by transferring his funds (for example, part of the salary at the employee's request or money that he deposits into the cash register) to a non-state pension fund.
Often this option, in which the employee pays for his own future corporate pension, is called “Personal Financing”, “Individual” or “Independent”.
Of course, when an employee has the required length of service, he or she can be included in another corporate pension plan, in which the company will also begin to allocate funds to finance the pension. Employees can also be given the opportunity to accumulate funds for their relatives.
Example. When a company developed and introduced a corporate pension program, employees began to contact the HR department with a request to include relatives (parents, spouses) in the program. Understanding that the company would not pay for relatives, employees expressed a desire to contribute personal funds. The organization only has to transfer these funds to a non-state pension fund, where the corporate pension for full-time employees is formed.
After discussions with the CEO, the HR Director announced that employees could contribute money for their relatives, and they would also be included in the Supplemental Pension Funding program. A special plan called "Relatives" was created for thi