The plans for which the legal entity makes contribution payments on behalf of the employees are Employer Group Pension Plans. With the Group Pension Plan, the institutions through more advantageous tax deductions, help their members and employees raise the income they will receive in their retirement.
When you, as the employer, include your employees in the Group Pension plan, as your transaction costs will be lower than it would be in individual agreements, you will have the opportunity to take advantage of lower fees and thus come out better off.
The Group Pension plan is issued to include at least 10 people. If the number of participants is less than 10, the pension plans that cover all the employees/members of the relevant institution are also included within its scope.
By including your employees in the Group Pension Plan, both you and your employees will benefit:
- For institutions who enroll in the system as a “group”, more favorable conditions compared to individual enrollment are offered.
- Your administrative costs drop based on information such as whether the employer makes contribution payments for the group, the number of employees and participants and the total fund size.
- It contributes to the employees' motivation and loyalty towards the company.
- It enables you to keep the quality human resource in the institution for long periods of time and increases the efficiency of your institution.
- You can benefit from tax advantages by deducting the contribution payments from your taxable corporate income.
- It improves the image of the institution.