Explanation of pension agreements
A pension agreement is an agreement between the employer and ENNIA. As an employer, you can choose from 3 different pension agreements.
1. The benefit agreement: choose a fixed benefit amount.
With a benefit agreement, both the employer and employee know in advance exactly which pension benefit the employee will later receive. This is calculated on the basis of salary, years of service of the employee and an accrual rate.
ENNIA’s pension plan with a benefit agreement: Guaranteed Pension.
Advantages of a fixed pension benefit
Drawbacks of a fixed pension benefit
2. The premium agreement: a fixed premium.
With the premium agreement, both the employer and employee know in advance exactly which premium needs to be paid for the pension. The amount of the pension benefit is not determined in advance. The premiums (after deducting risk premiums) are used to build up the pension benefit. The pension capital is used for the pension benefit upon the predetermined retirement date.
The Budget Guaranteed Pension Plan is a combination of the benefit and premium agreements. The premium is predetermined and this amount is directly converted into a pension benefit for later. This means that both the premium and the pension benefit are exactly defined.
- Less security for the employee about the amount of the pension benefit
- The amount of the pension benefit is not predetermined
- The amount of the pension benefit is calculated upon retirement
Advantages of a fixed premium
Drawbacks of a fixed premium
3. The capital agreement: choose a monthly premium and an insured amount.
The capital agreement includes an insured capital that becomes available on the maturity date for purchasing of pension(s). Due to its highly individual character, customization and regular maintenance is necessary.
A pension insurance with a capital agreement is: Individual Pension.