Company pensions are a key part of today's compensation and benefits packages. The new disclosure requirements in the German Commercial Code (HGB), which require the level of individual provisions to be shown, make the real value of pensions crystal clear to everyone involved. The regulations of the German Corporate Governance Code (DCGK) go even further, requiring a detailed cost analysis from the company perspective and an overview of the benefits from the employee perspective as a basis for decision-making by the supervisory board.

 

Recent years have seen a shift away from defined benefit systems, depending on final salary levels, in favor of defined contribution systems, based on (yearly) contribution levels. The relevant systems found on the market vary widely with regard to coverage in the event of death or invalidity, interest during the active and passive phase, and payout mode (regular pension, installments or lump sum).

 

Benefits packages for board members may also include company cars (with or without driver) that can be used privately, accident/whole-life insurance, D&O liability insurance, severance payment arrangements and the like.

hkp/// group works on your behalf to identify efficient ways of managing the cost and impact of benefits and pension packages. We do not sell insurance products, nor are we actuaries or part of a larger audit firm. For that reason, hkp/// can give independent advice based purely upon the interests of the company.

 

At hkp/// we keep up to date with the latest regulations and market practice in the area of pensions and benefits. We draw up market reports comparing the different solutions from the perspective of compensation and help our clients develop appropriate, modern concepts for their corporate pension schemes.

* Photo by Matthew Bennett on Unsplash