Company Pension Scheme  Manufacturers, Traders, Suppliers

An important pillar of financial security in old age is company pension provision. It belongs to the so-called second tier of pension provision and is defined by the fact that the employer guarantees pension benefits for his employees in old age.The way in which the money set aside for this purpose is invested varies depending on the chosen implementation method. Under the direct commitment, the employer is free to make investment decisions, but must be paid into the pension insurance association. In other forms, such as the provident fund, there is not even a formal legal claim; in others, such as the pension fund, payment is made to an independent insurance company and the amount of these payments is limited for tax purposes.For employees, the advantage of a company pension scheme is the possibility of saving parts of their salary that would be subject to tax or social security contributions, and of circumventing this tax obligation. Later pension benefits are taxable, but since older people have lower tax rates to pay, this is not very important.