Like a 2nd pillar, but with employee responsibility
Mandatory pension provision is often perceived by employees as something imposed and lacking transparency. While the 2nd pillar remains the foundation of any pension system, a 1e plan allows individuals to directly manage the portion of their salary that exceeds the legal ceiling of CHF 132,300 per year. From this level of remuneration, an entrepreneur or executive effectively becomes the manager of their own future pension by personally selecting the investment strategy they wish to follow.
This scheme, also referred to as a super-mandatory plan, complements the 1st and 2nd pillars to offer top earners better retirement prospects. With the recent change in legislation governing the scheme, the 1e plan, previously adopted mainly by large companies, is now attracting organisations of all sizes seeking effective tools to attract and retain an increasingly demanding executive workforce.
A choice of no fewer than 10 investment strategies
Primarily designed for executives with a good understanding of finance and financial markets, the 1e plan enables its members to manage their retirement plan in detail and to assume responsibility for their returns. Depending on their investor profile, the employee can choose from about ten investment strategies classified by risk level. Unlike a traditional pension system, the employee’s assets are managed individually by the provider in accordance with choices that can be modified at any time by the insured.
As for potential withdrawals, the 1e plan follows the same rules as the 2nd pillar: purchasing a primary residence, starting self-employment, or relocating abroad. In addition to offering superior potential returns, greater flexibility, and full transparency, this type of retirement provision also provides tax advantages.
Therefore, regardless of your company’s size, if you wish to offer your executives greater autonomy in the management of their pension plan, do not hesitate to schedule an appointment with one of our Plus Assurances & PME experts. They will be delighted to assist you in implementing a 1e plan for yourself or your employees.
