Many large financial and technology companies are creating complex ecosystems of services for legal entities. These include accounting services, electronic cash registers, investments, tax consultations and insurance.
Corporate pension programs fit perfectly into these ecosystems, becoming as much a part of the social package as voluntary health insurance.
At the first stages, boxed product solutions aimed at brazil mobile number list small and medium businesses are used. For large scale, an individual approach to choosing the parameters and conditions of corporate programs will remain relevant for now, so the format of face-to-face discussions and selection of plans for specific companies is retained.
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In conditions of economic instability, the importance of corporate pension programs increases. They can become an integral part of the social package that employers offer their employees, since the KPP is a flexible and multifunctional tool that can be customized to the various needs of corporate clients.
For example, if an organization is unable to increase salaries during a crisis, including a corporate pension program in the social package can help smooth out negative sentiments in the team. Thanks to a special tax regime, the company's expenses on the pension program are significantly lower than the expenses on increasing employee salaries.
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Conditions for receiving a corporate pension
The terms of the corporate pension program are as follows:
Contributions can only be made by the employer himself or jointly with the employee in certain shares, most often 50/50. For the employee, participation in such a program guarantees at least 100% profitability without taking into account investment income.
The most popular corporate pension plan is the defined contribution (investment) plan.
As part of this development, the investment income actually earned by the fund is annually distributed to the pension account, which on average exceeds the rates on bank deposits. For example, in 2019, according to the Central Bank report, the yield of the five largest funds ranged from 6.4% to 12.2%, while in leading banks it was 6%.
Less common is a defined benefit plan, which requires the company to exercise more financial discipline.
The main condition for obtaining the right to savings in the KPP, which are formed by the employer, is work experience. Usually it is required to work from 3 to 5 years. As the length of service increases, the employer's contributions may increase. The program can only be extended to key specialists of the company.
The employer can set a maximum contribution amount for each employee, for example, up to 20,000 rubles or up to 5% of the salary.
Receiving the accumulated funds does not necessarily have to be related to retirement. The employer can set conditions for early withdrawal of the amount, such as the need for expensive treatment, payment of a mortgage, or simply after a certain period of work in the company.
If an employee fails to meet the terms of the pension plan, such as quitting early, the company can take the funds invested and distribute them to other employees. In some cases, the employer can keep the savings for the employee even if he or she quits early.
If an organization stops contributing to the CPP due to financial difficulties, the accumulated funds remain in the employee's account and continue to be invested until the end of the program.
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Alexander Kuleshov
Alexander Kuleshov
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