Pension Check

7 May 2020

Pension is, besides the normal wages, the most expensive labor arrangement of your company. It is the labor arrangement for which employees seem to have the least interest. It is also the labor arrangement with the biggest financial liabilities for the company in the future.

Pension agreement

The start of the pension scheme is the pension agreement. It contains the agreements you made with the employee about the pension scheme. For a lot of companies the pension agreement follows from the legal obligation to participate in an industry-wide pension fund. Or the obligation to integrate an obligation stemming from a collective labor agreement.

As soon as the pension agreement has been set up, the employer is obligated to arrange an administration agreement with a pension provider. This provider in turn is the party to draft the pension regulations which give the employee his pension claim towards this provider.

Financial risks

Future financial risks can occur if the employer does not participate in the correct mandatory industry-wide pension fund. Or if the pension agreement does not meet the legal requirements or has been changed afterwards in an incorrect way. The administration agreement can also lead to a financial risk. Differences between the agreements made with the employee and the agreements made with the provider can lead to a significant financial risk for the company as well.

In the past years the life expectancy has increased significantly and the interest rate has dropped to an absolute minimum. Both factors have a huge impact on the price of pension. This has led to strongly ascending premiums or a very disappointing pension result. And the insight that choices made in the past, based on the current knowledge, not always were that smart.

Pension Check

The Pension Check provides you with the insight in the (future) financial risks hidden in the current pension situation of your company. We will also show in what way, now or in the future you can save on the due pension premium. And we will inform you about the impact of the Pension Agreement of the government on the current pension scheme.

To perform the Pension Check we need the pension regulations, the administration agreement and the pension paragraph of your labor agreement or the personnel manual of the current (and if applicable the last two formal) pension scheme. We also need an excel-sheet with information about the personnel.

You can review this information in this document.

Are you interested in having the Pension Check carried out or do you have any questions? Please contact Paul van Ravenzwaaij, paul.vanravenzwaaij@pellicaan.nl.