Collective Pension Plans

Mandatory participation

• A company can enrol all its employees or a category of its employees in a collective pension insurance; employees have no possibilities to opt out.

General finances

• Fully funded personal pension plans based on personal contribution payments and capital revenues.

Contribution payments

• Mandatory contribution payments from employees and the employer required by the plan.
• The employee can make voluntary payments to the plan (no fixed contribution rate) and the employer can make supplementary payments in the name of the employee. 

Taxation of contribution payments

• Contributions paid by the employee and the employer are not subject to taxations within a certain limit.
• Under certain conditions, the revenue generated by the savings is exempted from income taxes.

• The plans are administrated by private insurance companies and the costs of their management must be paid by the employer.

• The insured person has the right to claim benefits in case of retirement; conditions are the same as in the general scheme for employees in industry and commerce.
• Under certain conditions, the savings must be paid to the entitled beneficiaries before retirement (e.g. in case of death of the person, the sum must be paid back as part of the inheritance).

Pension payments

• The benefit is determined by the conditions of the insurance contract.
• Lump-sum payment and annuity payment are both possible.

Taxation and social security contributions

• Payments are not always subject to income tax (especially when the benefit is paid as a lump sum).
• Payments are subject to CSG, CRDS and CASA.