Employer-Sponsored Retirement Plans
Supplementary Pension Plan for Public Sector Employees (VBL) and Deferred Compensation
Employees in the public sector covered by collective bargaining agreements are generally entitled to a supplemental occupational pension plan. The provisions governing this are set forth in the Collective Bargaining Agreement on Occupational Pension Plans for Public Sector Employees (ATV). Mandatory coverage is automatic and is generally provided through the Federal and State Pension Fund (VBL).
In addition, under the collective bargaining provisions of the public sector, deferred compensation offers the option of allocating a portion of one’s gross salary toward a supplemental occupational pension plan. In this process, a portion of the salary is converted into pension contributions. Depending on the specific arrangement, this may result in tax and social security benefits.
Special Provisions for Research Associates
As described, all employees covered by collective bargaining agreements in the public sector are automatically and mandatorily insured under the supplementary pension plan (VBL). Research assistants and faculty members assigned to special tasks are typically hired only for relatively short periods. As a result, it is often not possible to meet the 60-month waiting period required for pension eligibility under the mandatory VBL coverage.
For this reason, employees in the public sector engaged in research activities may be exempted from mandatory VBL coverage.
In these cases, employers must instead establish an additional retirement plan through VBLextra. No employee contributions are required for this plan. Advantage: Pension benefits can be claimed from this plan even without fulfilling a waiting period.
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