Pension Plans of Employment

It is a system of saving-forecast long-term promoted by a company, company or corporation for its employees, in which starting from some contributions, and result of the system of consecutive capitalisation for the same one, are obtained the provisions at the time of produce the covered contingencies.

    Characteristics

    Aims of this system of social savings system:

    • To complement employee’s retirement funds.
    • Optimise the wage costs (the contributions are exempt from social contributions; therefore, the business wage cost is equal to the amount of the contribution).
    • To provide tax breaks.
    • To motivate all employees.
    • To offer an alternative to other social benefits.

    Tax breaks for the company

    • Way of less costly remuneration that the money compensation package, since the contributed amount:
      • Reduces the basis of assessment of the Corporation tax.
      • It does not increase the contribution basis of the Social Security Institute.
    • It does not have practice withholding taxes of PERSONAL INCOME TAX as in another type of remunerations in kind.

    Tax breaks for workers

    • Has a neutral effect on its income, since on the one hand the contribution of the company increases its basis of assessment but for another benefits from the contemplated reductions for the pension plans.
    • It does not suffer withholding taxes of PERSONAL INCOME TAX.

    Other benefits

    • Participation in the scheme can also be extended to partners working in the employment plans promoted in the area of cooperative and employment entities, if so stipulated in the specifications of the plan promoted by the company. In these cases, the promoting company may make contributions in favour of the stated participating partners, without prejudice to their own contributions to these pension plans.
    • Specific financial regime for disabled persons.
    • Lower commissions than individual pension systems: around 60% less.

     

    Insurance brokered by BANKIA MEDIATION Associated Banking-Insurance Operator, S.A.U. (ID number to-40148884) and registered office in Pº Castellana, 189, 28046 Madrid. Registered in the special administrative record of Insurance Brokers of the Directorate-General for Insurance and Pension Funds with the key OV-0034. Subscribed agency contracts of insurance with Mapfre Spain, Mapfre Overall Risks, Bankia Mapfre Life and S.A. NOSTRA Life. Financial liability insurance and skills cover according to current legislation.