An attractive workplace offers occupational pensions independent of collective agreements

An occupational pension is an important part of a safe and secure future. For this reason, a good pension solution is highly valued by many employees. Pension savings with and without a collective agreement can take many different forms, but regardless of whether the company is covered by a collective agreement, an occupational pension with favourable conditions can be an effective way to gain a competitive advantage.

An occupational pension is an important part of a working life. It provides security for the employee both now and in the future. The highest possible pension combined with secure insurance is highly valued by most employees. Many employees do not consider the state pension as a sufficient future salary and therefore ask for a supplement. This is why great importance is attached to occupational pensions - whether or not there is a collective agreement.

Occupational pension and collective agreements

However, offering occupational pensions as a company is not a requirement. It all depends on whether the company is covered by a collective agreement or not.

Occupational pension with collective agreement

Companies covered by collective agreements are obliged to offer occupational pensions. These pension agreements are called contractual pensions and come with certain requirements for how it should be structured. For occupational pensions under collective agreements, there are different solutions, but include the same basic requirements for how much and what part of the income should be set aside for pension.

Occupational pension without collective agreement

There is a common misconception that companies without collective agreements do not offer occupational pensions, this is not the case. For companies without a collective agreement, occupational pensions are optional. Companies that choose to offer occupational pensions without a collective agreement are free to design their own pension contract directly with a pension company. By deciding for themselves how much to contribute to the pension, what income should be pensionable and what insurance should be included, it is possible to have a contract that suits both the company and the employees.

Occupational pension independent of collective agreements - a competitive advantage

Although there is no requirement for an occupational pension without a collective agreement, this is something that many companies offer their employees. This is to make themselves as attractive an employer as possible. According to statistics from the Pensions Agency, around 9 out of 10 employees have an occupational pension, even though collective agreements are not always in place.

Employers have a great deal of freedom to choose who they want to employ, which also applies in the opposite direction. When choosing an employer, a candidate evaluates the conditions of the various alternatives. Many focus on employment conditions such as salary, working hours and colleagues, but also on occupational pensions.

Surveys show that occupational pensions are one of the factors most valued by employees, with one in four Swedes saying they would be willing to change jobs to get more favourable pension benefits. This means that companies that offer favourable occupational pensions regardless of collective agreements have a major competitive advantage both in terms of recruiting staff and retaining existing skills.

An estimated occupational pension is not determined by collective agreements

Offering occupational pensions, regardless of collective agreements, does not automatically generate satisfied employees. It is important for employers to get to grips with the pension issue in order to understand what their employees are looking for in their occupational pension. It is also important that the employer clearly communicates to the employees what benefits are included in the pension contract.

Contributions for occupational pension

It is important that the company has a well adapted solution for occupational pensions, whether or not it has a collective agreement. Where there is a collective agreement, occupational pensions are often clear about what contributions are involved and what benefits are provided. Occupational pensions without a collective agreement offer more choice, but need not be more complicated. When designing the contract, it is important to keep an eye on occupational pension contributions, in order to provide good and cost-effective conditions for employees.

The various contributions for occupational pensions often consist of insurance contributions and fund contributions. Funds are an important part of pension savings because they allow the pension to grow. For this reason, as an employer you should always compare the fund charges for different occupational pensions.

Occupational pension and risk insurance

In addition to pension insurance itself, risk insurance is an important part of a company's occupational pension and something that many employees want. These also differ depending on whether the company has an occupational pension with or without a collective agreement. In the case of occupational pensions with a collective agreement, risk insurance is included in the contract, but in the case of occupational pensions without a collective agreement, the company chooses what to include.

Enabling the company to grow

In order for the company to maintain its strengths and grow further, it is important to have satisfied employees. It is therefore a great advantage to meet employees' wishes regarding occupational pensions. Whether or not covered by a collective agreement, occupational pensions can be a cost-effective way of positioning oneself high in the market and should therefore be a high priority.