The fundamental question that always arises is how the occupational pension scheme in the company is to be organized. The funding also has a significant part to play in this decision. The first thing to establish is the purpose that the occupational pension scheme is designed to fulfill. If the aim is to satisfy the employees’ entitlement to have earnings converted into pension contributions within the scope of an occupational pension scheme, the employer's allowance of 15 % of the amount of the employee’s earnings converted into pension contributions will be sufficient.
It may be, however, that you want to do more than just meet the minimum requirements. You could retain or promote employees by offering an employer contribution, for instance, while a greater allowance towards the earnings converted into pension contributions allows you to strengthen the stability of your employees’ retirement provision.
The occupational pension scheme can in principle be funded from the earnings converted into pension contributions, the employer’s allowance and pure employer contributions. Each form of funding can have an effect on the vesting of the pension.