BeFrank offers collective, defined contribution pension schemes, also known as DC schemes for short. Our pension is suitable for employers with more than 25 employees. The employee accrues a capital from contributions made by the employee and the employer. No hidden costs are deducted from the contributions: 100% is invested within one of our lifecycles. Depending on the chosen level of investment freedom, an employee may also choose DIY investment or savings.
As the retirement age approaches, we invest the pension contributions in lower risk funds. This providers a greater degree of certainty on the ultimate value of the pension. Once the employee reaches the state pension age, they can purchase a pension from an insurer of their own choosing.
At BeFrank, employees with a salary in excess of €100,000 per year can make additional contributions on a voluntary basis. The contributions are paid by the employer on their behalf from their net salary. These pension savings are in the second pillar. The advantage for employees is that the value of this net pension is not subject to taxation in box 3 of the tax return. The net pension savings are to be used to purchase a pension. The benefits received from this pension are not taxable. The limit of €100.000 is adjusted annually and amounts € 114.866 in 2022. Employees may also opt to take out an insurance-based partner’s pension for the salary in excess of this amount.