Compensation plans

When converting from a defined benefit pension to a defined contribution or hybrid pension, some employees may experience a reduction in future pension benefits. Howden has extensive experience in developing tailored compensation solutions that ensure that employees maintain their pension levels even after a conversion.

By offering such compensation pension plans to your employees, the members' annual contributions are not subject to taxation. Taxation only occurs when employees reach retirement age or leave the company. Thus, members will achieve full returns on 100 percent of their savings, which will contribute to a higher pension in the long run.

We assist in establishing an investment solution where the annual contributions are placed in mutual funds. Such a solution ensures the employees' pension rights, even in the event of a future bankruptcy.

Redemption Insurance

In the fall of 2019, we established a new product solution for the redemption of earned pensions in a life insurance company upon reaching retirement age. The purpose of the product is to offer a favorable solution for the redemption of pensions upon reaching retirement age, which for most people is 67 years (the current accrual age in most occupational pension schemes). This applies both in connection with earned pensions from so-called compensation schemes, which ensure pensions for compensation for lost pension accruals in the conversion from defined benefit to defined contribution pension schemes, and for earned pensions for salaries above 12G.