Pension fund: How about a little more? April 1, 2019 Attracting and retaining good personnel is a challenge for every employer. SMEs in particular have to offer something to attract attention. A company can distinguish itself as a responsible employer by offering contemporary benefits from the second pillar. According to the stereotype, it is mainly large companies that offer comprehensive benefits for occupational pension planning. But SMEs can also organize their pension fund solution in such a way that brings added value for employees. You can stand out as an SME entrepreneur in relation to the following topics: Without returns there can be no interest earned. No two investment returns are the same. Employers who chose a pension plan with a sustainably successful investment strategy achieve higher interest earned on the retirement assets of their employees. This is a particularly important argument in the present low-interest phase so that the pension fund remains an important module of retirement provision. Add a bit extra. By law employers have to pay at least half of the pension fund contributions. Those who pay more – such as two thirds – ensure that their employees have higher net earnings at the end of the month. This mainly benefits older employees paying high proportions of their salary in contributions for the second pillar. However, younger employees also benefit because their salaries are often still quite low. They therefore welcome every additional franc. This can also be a good argument in the case of salary discussions. As an entrepreneur you should go for this solution. Admittedly, you pay higher pension fund contributions, but you can deduct these costs as operating expenses. Insure a higher proportion of the salary. By law employees have to be insured under an occupational pension plan from an annual salary of 21,330 swiss francs. So by law it is not the whole salary, but only a certain part of it that is insured because of the BVG coordination deduction of 24,885 swiss francs. As an employer you can voluntarily waive the coordination deduction or also insure salaries above the mandatory BVG salary of 85,320 swiss francs. A further option is to insure full salaries for part-time staff. In this way you can systematically increase your appeal for certain groups of employees such as part-time staff or members of management on good salaries. Offer better risk protection. Benefits in the event of death and disability are particularly important for families or owners of residential property. Companies offering a solution that goes beyond the BVG minimum can come across as very attractive for employees. This is because the differences in benefits can be substantial and, in the case of disability pensions or widow's pensions, can account for as much as 10,000 swiss francs a year. So if fate should happen to strike a blow, the slightly higher contributions mean great added value for your employees. Tip from the experts: Check the options offered by your pension fund. Do you know how good the benefits paid by your pension fund are and whether it already offers the best possible solution for your employees? Find this out together with a pension specialist. The specialist can explain what your pension plan offers – and whether there is still potential for optimization.