Pension management start after our work related to pension advice for employers. Management of a collective pension scheme is, even for professionals, a complex and often intensive process. After all, the employer has a statutory pension duty of care to meet the many – often legal – requirements. Pension management is a crucial part of a solid employee Benefit scheme.
Pension Management and liability
Organizing pension management for employees is a difficult and tedious job for any company, HR department or accountant. Mistakes can become major problems due to the strict Dutch Pension Act. We take care with solid pension management, the responsibility and the financial liability. With a tight organization, professional knowledge and logistical knowledge about the activities at pension insurers, an employer gets the legal and administrative security.
13 pension management activities
- Guiding the entry and exit of employees. As an employer, you do not want to be confronted with administratieve pension matters. However, handling this correctly is crucial because of the serious risks if the requirements of, for example, timely registration are not met.
- Administrative support and control of individual pension benefit transfers. Some employees want to know what the advantages and disadvantages are. This is their right, but a company often lacks the practical knowledge to settle this efficiently. The pension providers usually only provide basic logistic information.
- Adjusting the pension scheme to salary changes. Our experience is that for every 10 employees there is one case that requires technical attention. Pension management filters out the difficult situations.
- Personal changes on an individual level. Change of address, another partner, children, value transfers, incapacity for work, etc. Passing on the pension management change is often only a fraction of the time investment. Personal guidance and explanation is often rightly experienced as necessary.
- Legal consequences of legislative changes. Over the past 10 years there have been changes almost monthly that sometimes had far-reaching consequences. The change in the standard retirement age to 68 years was such an adjustment.
- Financial cost control pension contract. Once a pension provider has been chosen, there is a constant need to limit costs. Pension management ensures a certain control over those costs.
- Insurance consequences or product changes. Does the new product features of a collective pension scheme still match the pension commitment? Without control, the responsibility for good pension management lies with you as an employer.
- Coordination of pension consequences of retirement, incapacity for work and death of an employee. At that unexpected moment, immediate pension management action is necessary, but especially careful guidance is guaranteed with our pension-management.
- Information from, and preparation of, Works Council meetings. For a well-prepared employer, a pension plan through correct pension management does not have to be a problem. We provide substantiation and guidance through thorough pension management.
- Give assistance with pension texts employment/labor contracts. It is often a surprise when the intended pension plan, the commitment in the employment contract, the employee handbook and the Pension 1-2-3 information for the employee are aligned. Pension management arranges this synchronization.
- Administrative logistics around policies, pension agreements and administration agreements. We help with clear logistics, archiving and reporting through professional pension management.
- Providing information to the payroll administrator. Calculating the correct personal contribution sometimes turns out to be quite a challenge for even a experienced payroll administrator.
A pension plan gives every company the opportunity to tailor an employment condition as part of all rewards. Fine-tuning pensions as terms of employment is a good opportunity to ensure that the wishes of the employer and the employee are aligned. You can then determine which pension insurer has a direction that suits your own wishes. The prices and conditions sometimes differ greatly. The (price of) services are also a element not to be forgotten.
Audio (in Dutch)
The Dutch pension building. 10 minutes. Link and download
Stakeholders pension management
Pension management is also a labor-intensive process for professionals. After all, the employer has a duty of care that must meet many legal requirements. The circle of stakeholders is growing:
- Tax authorities;
- The pension provider;
- The participants;
- The accountant;
- The pension advisor;
- HR department or payroll clerk;
- The shareholders.
Example of activities
We are happy to relieve the employer’s duty of care for pension management. Examples of pension management activities that we can take care of:
- Substantive control of pension scheme against legislation and regulations
- Checking the pension documents of the pension provider and employer
- Information provision of relevant product and legislative changes to the employer (e.g. 68 years old – the emotion and the facts)
- Registration and deregistration of participants
- Annual and interim salary changes
- Changes to the civil status of participant
- Assessment of surviving relatives criterion
- Processing parental leave scheme
- Report termination of partnership or cohabitation
- Reporting and supervising incapacity for work
- Change investment choice
- Report the death of the participant and support benefits
- Financial settlement on retirement
- Participants 30% ruling assistance
- Supervising non-contributory entitlements ex-participant
- Supervision of pension requirements Medical Examinations Act
- Progress control of the activities of pension providers
- Coordination with accountant, office management and-or payroll adminstrator.
- Adjust pension scheme through standard legislation and regulations
- Value transfer counselling individual participants
- Adjustment of pension scheme due to irregular laws and regulations
- Textual assistance (employment contract, personnel guide, etc.)
- Advice implementation agreement, starting letter and pension regulations
- Information to the participant in the event of divorce
- Verification of waivers
- Assistance with tax matters and legal liabilities
- Pension helpdesk for participants (Or other personal assistance)
Pension management costs
We do not receive any pension commission from insurers. All our activities are documented in advance and invoiced afterwards in mostly fixed rates. No unexpected bills. We are independent of pension insurers, so we work 100% for those who pay our bill. Pension management varies in costs for companies between € 10 and € 25 per employee per month. These costs depend on whether a standard or comprehensive service is provided.
Pension management is often accompanied by specific other employment conditions such as absenteeism insurances of disability insurances. In addition, synchronization will be of great importance in order not to cause conflicts from these employment conditions towards employees. We allow the conditions to connect seamlessly from pension management to these additional employment conditions. Naturally, a connection is sought with the information as laid down in the employment contract and the personnel guide / commitment.
(Sickness) absenteeism and pension management
Sickness absence has an important influence on pension management activities in several respects. To what extent will the premium have to be paid? (UWV info) How is care leave handled and what happens if the absenteeism changes from sick leave to incapacity for work? Are there any consequences for the progress of pension accrual? At what time will the pension insurer be informed and which administrative route must be followed? Here, too, a connection is sought with the information as recorded in the employment contract and the personnel guide / commitment.