Occupational Pensions Strengthening Act
Pension reform causes a stir in the industrial sector
Since the beginning of the year, entrepreneurs of small and large companies have had to watch out: The new Occupational Pensions Reinforcement Act is the biggest pension reform in 50 years and is causing a stir in the industrial sector. Due to a lack of information or knowledge, only a few employers have paid attention to this issue. The new law can bring up to 30 years of additional liability. Bosses should be aware of these points.
Employer's duty to inform now becomes law
At the turn of the year 2018, stage one of the German Company Pension Reinforcement Act (BRSG) will come into force: the requirements for information on company pension entitlements (in accordance with Section 4a BetrAVG) will then become stricter. In future, managing directors will have to provide every employee with clear and complete information about the company pension scheme options available or, for example, the amount of the pension entitlement on leaving the company. If this is not done or not done in full, the boss is even liable for missing pension benefits due to a lack of information. "There is an increased liability risk with company pensions in particular," says Alexander Bußler, company pension lawyer from Heddesheim near Mannheim. A pension capital of 100,000 euros is already required for a lifelong pension of 300 euros. "The economic risk for the company per employee can be that high if the pension is not paid," says Bußler. It should also be noted that the effects of the new law exceed the legal limits of a normal financial advisor. It is therefore advisable to appoint a certified pension consultant who also assumes liability.
Subsidy obligation for entrepreneurs
One year later, on January 1, 2019, the second stage of the legislative changes will come into force. It obliges companies to pay a subsidy of 15 percent for new contracts and when drawing on the occupational pension scheme. This will be offset against the gross monthly contribution that the employee pays into an employee-financed company pension. Existing contracts do not need to be adjusted until the turn of 2022. The crux of the new regulation: according to the principle of equal treatment, colleagues with an older employment contract could have the same right to a subsidy, which must then be communicated due to the obligation to provide information. "There are financial dangers hidden in this," emphasizes Markus Sobau, financial advisor at Confina in Stuttgart. "If employees keep all or part of this information under wraps, it can be claimed retroactively by the employer up to 30 years later," explains Sobau. Bußler also recommends "making an employer contribution of at least 15 percent for all employees as part of a new pension scheme from January 1, 2019 at the latest". This would ensure maximum legal certainty.
Danger social partner model
"The social partner model is shaking up the professional world," emphasizes lawyer Bußler. Up to now, there has been no risk for employees in occupational pension schemes and money has been safe and guaranteed even in an emergency. This changes dramatically with the social partner model. According to the motto "pay and forget", employees put their money in the care of the "social partner pension". "The bottom line is that nobody knows what sums will be paid out in retirement or whether pension payments will remain constant and not fall during the retirement phase," says Dieter Homburg, author of the book Altersvorsorge für Dummies. There are no longer any guarantees in the savings phase, pension phase or the possibility of a one-off payout on retirement. But what does this have to do with small companies without a company pension? The problem comes to light when employees move from a company bound by a collective agreement, for example in the automotive industry, to a ten-man company not bound by a collective agreement. "This is where unprepared bosses run into trouble," says the financial specialist from Lippstadt. After all, if a new employee brings a social partner model with them and a medium-sized company adopts this model without checking it, the company is once again obliged to provide information for this model without guarantees and securities. "If this happens, trouble is inevitable," adds Homburg. Bosses may then also be obliged to inform other colleagues about the social partnership model.
Safe with precaution
"To ensure that owners are on the safe side, they should make use of their right to review and reject", explains Markus Sobau. Employers can specify in the pension scheme regulations which pension and retirement models are offered and which are not. In this way, the danger of bringing an unwanted risk or an unwanted employee representative into the company is averted. Nevertheless, bosses should check who receives which subsidies and, above all, who does not. "The reform and the obligation to provide information will force employees to treat each other equally," summarizes the Stuttgart-based financial advisor. The difficulty lies in taking all legal aspects into account and breaking the vicious circle. To this end, the executive floor should consult a financial specialist for company pension issues and have a company pension lawyer write down what has been worked out in a contract text. In this way, maximum legal certainty is achieved at minimum cost, the company remains free of employee representatives and the employees' pensions remain untouched in old age. Hendrik Stüwe/cs
You might also be interested in
Plagiarius 2024 negative prize
On January 26, 2024, the Plagiarius campaign awarded its dreaded "Plagiarius" negative prize for the 48th time to manufacturers and retailers of particularly brazen counterfeits and fakes.
read more...Ivalua honors winners of the Generative AI...
AI-supported "add-ons" for buyers within 48 hours
Ivalua, provider of cloud-based spend management solutions, announced the winners and innovations of the first Generative AI Innovation Cup. The competition took place in December 2023. It was open to all Ivalua partners and employees - more than...
read more...Efaflex celebrates 50 years of high-speed...
The emphasis is on "fast"
Since day one, Efaflex has wanted to use new technologies as early as possible and drive progress in the industry. This year, the family business is celebrating its 50th anniversary under the motto "Fast Forward".
read more...Security of supply even during power outages
In the winter of 2022, Germany was worried about energy shortages. The drugstore retailer dm did not paint any horror scenarios, but nevertheless saw the possibility of controlled, temporary, regional power cuts (brownouts).
read more...Safety technology in mechanical engineering
Modules with new functions
Euchner's product highlights at EMO 2023 include the communication-capable solenoid interlocks.
read more...Transforming the paper industry towards climate neutrality
Together with partners from industry and research, Voith is developing a project for the optimization of energy and material flows in paper production. The aim of the research project is to develop a digital framework that enables effective process...
read more...Up to 95 percent less flue gas thanks to direct extraction
The requirements for occupational safety measures and safety technology are also constantly increasing in welding technology. The Technical Rules for Hazardous Substances (TRGS) stipulate that welding fumes and harmful substances must be extracted...
read more...Competitive advantages with large machines
Whether 3D-printed components for machines and systems, prototypes or aids for design: additive manufacturing is almost indispensable for modern companies in mechanical and plant engineering and automation if they want to play in the premier league.
read more...Transport technology from the modular system
Many transport tasks can be realized with the help of linear technology. Pre-configured solutions are available to simplify the interaction between the linear unit, motor, gearbox and controller. This minimizes the effort required for research and...
read more...