Os pension plans are a set of benefits that some companies offer to their employees in order to guarantee a supplement at the time of retirement.
There are currently 3 types of pension plans:
- Defined benefit plan – benefits are defined in advance and calculated in order to guarantee payment
- Defined contribution plans – contributions are defined in advance and benefits depend on the value of contributions delivered and income accrued
- Mixed plans – is a combination of the characteristics of the two previous plans
When and how are Pension Plan benefits paid?
Pension Plans are paid to the employee on one of the following occasions:
- old age retirement
- early retirement
- disability retirement
- Survival – Serious illness or permanent incapacity to work
The payment method will vary from case to case., with two options:
- The employee receives 1/3 of the amount at once and the rest is paid in installments
- If the monthly amount is less than 10% of the national minimum wage, the employee and the management entity can reach an agreement so that the payment is made in a single installment.
Do you want to know which companies offer Pension Plans?
