What is meant by Company pension scheme?
"Occupational pension schemes" refer to employer-funded or co-funded retirement plans for employees. These schemes supplement the state pension and can be offered in various forms, such as direct commitments, support funds, pension funds, pension schemes, or direct insurance. The aim is to ensure or improve the employees' standard of living in retirement.
Typical features of software in the area of "occupational pension schemes" include:
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Management of Pension Schemes:
- Recording and managing the various pension schemes and their conditions.
- Overview of all employees participating in a particular pension scheme.
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Contribution Calculation:
- Automatic calculation of contributions made by both the employer and the employee.
- Consideration of salary conversions and other individual agreements.
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Benefit Calculation and Management:
- Calculation of expected retirement pensions and other benefits.
- Management of benefit claims and payout processes.
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Employee Information and Counseling:
- Providing information about occupational pension schemes to employees.
- Supporting the counseling of employees on their individual claims and options.
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Compliance and Reporting:
- Ensuring compliance with legal requirements and regulations.
- Creating reports and documentation for internal and external purposes, such as for auditors or regulatory authorities.
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Integration with Other Systems:
- Interfaces to payroll systems for automatic transfer of contribution data.
- Integration with HR management systems for employee data management.
Examples of "Occupational Pension Schemes":
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Direct Insurance:
- The employer takes out a life insurance policy for the employee, with tax-advantaged contributions.
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Pension Scheme:
- An independent institution that provides benefits for retirement, disability, or survivors' benefits.
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Pension Fund:
- A legally independent pension provider that allows employees and employers to contribute to retirement savings.