1© 2002 moneyoptimal gmbh pension plan proposal issued march 2002

1 © 2002 moneyoptimal GmbH

Pension Plan Proposal

Issued March 2002


Content

1. Alternatives and legal requirements

2. Your company‘s requirements

3. Our recommendation

4. Facts and figures

5. Benefits for you and your employees

6. For further information



Pensionpromises

Relief Fund„Unterstützungs-

kasse“

Direct InsurancePension Pool

„Pensionskasse“ (under legal control)

Employeeclaims ...

direct to employer via relief fund to employer

to insurance

Pension Fund„Pensionsfond“

topension pool

to agency handling the „Pensionsfond“

Payed by ...employer: reserve for pending claims or reinsurance necessary

employer and/or employee

employeror employee



Limit ... unlimitedmax. 1.752 € p.a.

or 2.150 € ifbased on average

max. 1.752 € p.a.or 2.150 € if

based on average

to 4% of base salary

Taxationemployer ...

neutral if reinsured,otherwise tax

reduction

tax deductibleoperating expenses

tax deductible operatingexpenses if payed by

employer,flat-rate tax if payed

by employee

tax deductible operating expenses

Taxationemployee ...

only subject to taxduring pension period

flat-rate tax during saving period,payment free of tax if payoff all at once,

partly free of tax if paid as annuity

free of tax but only according to

„ Riesterrente“

only subject to taxduring pension period

Issues for employer ...

• huge amount of work concerning balance• full responsibility • complicated for HR• tax savings possible

• risk transfer• easy to handle

• risk transfer• very easy to handle

• risk transfer• very easy to handle

• risk transfer• very easy to handle• flexible investment

Issues for employee ...

• tax reduction by shifting salary to pension period

• tax reduction by shifting salary to pension period• high yields possible

• low flat-rate tax• saving of social insurence contribution

• only annuity possible• low yield • higher yield possible

tax deductible operating expenses

claim up to 256.000 €

or 25.800 € annual pension


Content









Both employer and employee should be allowed to contributeto the Pension Plan

Employer‘s payments should be tax deductible

The risk/return ratio needs to be well balanced

„Provider“ should offer a variety of appropriate solutions in order to attract all employees

Easy handling for HR – avoid additional workload

Service for the employees should be covered by external financial advisor

What else is important for you? Just let us know...


Content








3. Our recommendation: The Relief Fund „Unterstützungskasse“

Pro‘s for the you as an employer:• Very flexible• Almost unlimited• Different options within this system possible• Easy handling for HR• Meets all needs

Pro‘s for your employees:• High yield• Well balanced risk/return ratio• No limit• Tax saving


How does the Relief Fund „Unterstützungskasse“ work?

Employee defines individual pension plan within a givenframework

Contributions Supply

EmployeeEmployer

Insurance

Company


Relief Fund – financed by employer

Relief Fund

Employer financed

• employer provides determined pension plan

• employee can enlarge it by own contributions

attractive Pension Plan

Very

Employee financed

• different partners possible

• different options possible

• high flexibility: - annuity / payoff

- live / rent insurance, investment

Direct insuranceemployee financed

and employee


The two pillars –

Direct Insurance

Taxation

Relief Fund „Unterstützungskasse“

• 20 % flat tax rate • Only subject to tax during pension period

Supplements

• No contributions in case of disability

• Disability annuity

• Payment in case of death

• Widower insurance

• No contribution in case of disability

• Payment in case of death

Advantages

Suitable ...

• Tax free even during pension period

• Flat tax rate during contribution period

• Good profits

• As basic insurance

• To add supplements

• As supplement to direct insurance

• For tax saving reasons

• For employees with high salaries

• High profits possible, yield on gross salary

• Tax reduction by shifting salary to pension period

Why should they be combined


Benefits of combining Relief fund with Direct Insurance

Attractive Pension Plan

Relief Fund

mainly responsible for:

• old age pension

• tax saving

• high profits

Direct insurance

mainly responsible for:

• disability insurance (stand alone or in combination with life / pension insurance)

• risk life insurance

Advantage of the combination:

• annuity / payoff for disability insurance is partly or fully tax free via direct insurance

• higher contributions possible in total

• high flexibility concerning benefits (payment in case of death, disability, early retirement)


Select from our „menue“

What is it?

What´s thebenefit?

Life / Pension insurance

Regular life / pension insurance

• no risk

• high reliability

• stable return on investment

• appropriate profit

• payment in case ofdeath possible

• disability insurance includingannuity can be integrated

Investment Pension

Combination of life / pensioninsurence and investment

• stability of return oninvestment

• good diversity based ondifferent fonds or asset management

• low risk

• high yield based on efficientasset management

• best fonds / shares of leading fond companies

• payment in case ofdeath possible

• disability insurance can be integrated

„Konzepttarif“Portfolio

Portfolio• 70% REX• 30% stocks (managed)

• stability of return on invest-ment due to mixture of REX and shares

• low risk through REX

• high yield based on pro-fessional stock manage-ment

• very high profits possible

• disability insurance can be

integrated


Content








4. Facts and figures: annual contribution 2.250 €

Male; age 35 years; duration 30 yearsEquivalent to an employer‘s contribution of 4% and annual gross salary of 45.000 €

Life / Pension insurance

guaranteed payment

Investment Pension Konzepttarif

107.000 € 105.000 € 83.000 €

total payment(incl. profit)

251.000 € 230.000 € to 310.000 € 277.000 €

paymentin case of death 90.000 € + profit available balance available balance

guaranteedannuity 579 € 536 € 435 €

total annuity 1.964 € 1.780 € to 2.120 € 2.235 €

contribution67.500 €

payment251.000 €


payment278.000 €


payment285.000 € all total payments are

calculated and not guaranteed


Content









No additional cost for the pension plan(our commission is paid by theinsurance)

We make your life easier by handling the pension plan advising your employees monitoring the legal requirements

We support your HR department(proactive information about legalchanges, know-how transfer how toput it into practice)

We help you increase your attractive-ness for your employees by offeringa special pension plan

Advantages for youas an employee

Every employee will find an optionfitting him perfectly

Individual information about pensionplan

We are the direct contact person –every day

Full-service regarding all questionsconcerning the pension plan

Advantages for your employees


Content








...or visit our website

http://www.moneyoptimal.de/

Please contact...

Richard Aigner and/orJürgen Held

moneyoptimal GmbHBajuwarenstrasse 4381825 München

Tel: 089 / 427 207 - 00 Fax - 01

[email protected]


1© 2002 moneyoptimal gmbh pension plan proposal issued march 2002

Documents