1 © 2002 moneyoptimal GmbH
Pension Plan Proposal
Issued March 2002
2 © 2002 moneyoptimal GmbH
Content
1. Alternatives and legal requirements
2. Your company‘s requirements
3. Our recommendation
4. Facts and figures
5. Benefits for you and your employees
6. For further information
3 © 2002 moneyoptimal GmbH
1. Alternatives and legal requirements
Pensionpromises
Relief Fund„Unterstützungs-
kasse“
Direct InsurancePension Pool
„Pensionskasse“ (under legal control)
Employeeclaims ...
direct to employer via relief fund to employer
to insurance
Pension Fund„Pensionsfond“
topension pool
to agency handling the „Pensionsfond“
Payed by ...employer: reserve for pending claims or reinsurance necessary
employer and/or employee
employeror employee
employer and/or employee
employer and/or employee
Limit ... unlimitedmax. 1.752 € p.a.
or 2.150 € ifbased on average
max. 1.752 € p.a.or 2.150 € if
based on average
to 4% of base salary
Taxationemployer ...
neutral if reinsured,otherwise tax
reduction
tax deductibleoperating expenses
tax deductible operatingexpenses if payed by
employer,flat-rate tax if payed
by employee
tax deductible operating expenses
Taxationemployee ...
only subject to taxduring pension period
flat-rate tax during saving period,payment free of tax if payoff all at once,
partly free of tax if paid as annuity
free of tax but only according to
„ Riesterrente“
only subject to taxduring pension period
Issues for employer ...
• huge amount of work concerning balance• full responsibility • complicated for HR• tax savings possible
• risk transfer• easy to handle
• risk transfer• very easy to handle
• risk transfer• very easy to handle
• risk transfer• very easy to handle• flexible investment
Issues for employee ...
• tax reduction by shifting salary to pension period
• tax reduction by shifting salary to pension period• high yields possible
• low flat-rate tax• saving of social insurence contribution
• only annuity possible• low yield • higher yield possible
tax deductible operating expenses
claim up to 256.000 €
or 25.800 € annual pension
4 © 2002 moneyoptimal GmbH
Content
1. Alternatives and legal requirements
2. Your company‘s requirements
3. Our recommendation
4. Facts and figures
5. Benefits for you and your employees
6. For further information
5 © 2002 moneyoptimal GmbH
2. Your company‘s requirements
Both employer and employee should be allowed to contributeto the Pension Plan
Employer‘s payments should be tax deductible
The risk/return ratio needs to be well balanced
„Provider“ should offer a variety of appropriate solutions in order to attract all employees
Easy handling for HR – avoid additional workload
Service for the employees should be covered by external financial advisor
What else is important for you? Just let us know...
6 © 2002 moneyoptimal GmbH
Content
1. Alternatives and legal requirements
2. Your company‘s requirements
3. Our recommendation
4. Facts and figures
5. Benefits for you and your employees
6. For further information
7 © 2002 moneyoptimal GmbH
3. Our recommendation: The Relief Fund „Unterstützungskasse“
Pro‘s for the you as an employer:• Very flexible• Almost unlimited• Different options within this system possible• Easy handling for HR• Meets all needs
Pro‘s for your employees:• High yield• Well balanced risk/return ratio• No limit• Tax saving
8 © 2002 moneyoptimal GmbH
How does the Relief Fund „Unterstützungskasse“ work?
Employee defines individual pension plan within a givenframework
Contributions Supply
EmployeeEmployer
Insurance
Company
9 © 2002 moneyoptimal GmbH
Relief Fund – financed by employer
Relief Fund
Employer financed
• employer provides determined pension plan
• employee can enlarge it by own contributions
attractive Pension Plan
Very
Employee financed
• different partners possible
• different options possible
• high flexibility: - annuity / payoff
- live / rent insurance, investment
Direct insuranceemployee financed
and employee
10 © 2002 moneyoptimal GmbH
The two pillars –
Direct Insurance
Taxation
Relief Fund „Unterstützungskasse“
• 20 % flat tax rate • Only subject to tax during pension period
Supplements
• No contributions in case of disability
• Disability annuity
• Payment in case of death
• Widower insurance
• No contribution in case of disability
• Payment in case of death
Advantages
Suitable ...
• Tax free even during pension period
• Flat tax rate during contribution period
• Good profits
• As basic insurance
• To add supplements
• As supplement to direct insurance
• For tax saving reasons
• For employees with high salaries
• High profits possible, yield on gross salary
• Tax reduction by shifting salary to pension period
Why should they be combined
11 © 2002 moneyoptimal GmbH
Benefits of combining Relief fund with Direct Insurance
Attractive Pension Plan
Relief Fund
mainly responsible for:
• old age pension
• tax saving
• high profits
Direct insurance
mainly responsible for:
• disability insurance (stand alone or in combination with life / pension insurance)
• risk life insurance
Advantage of the combination:
• annuity / payoff for disability insurance is partly or fully tax free via direct insurance
• higher contributions possible in total
• high flexibility concerning benefits (payment in case of death, disability, early retirement)
12 © 2002 moneyoptimal GmbH
Select from our „menue“
What is it?
What´s thebenefit?
Life / Pension insurance
Regular life / pension insurance
• no risk
• high reliability
• stable return on investment
• appropriate profit
• payment in case ofdeath possible
• disability insurance includingannuity can be integrated
Investment Pension
Combination of life / pensioninsurence and investment
• stability of return oninvestment
• good diversity based ondifferent fonds or asset management
• low risk
• high yield based on efficientasset management
• best fonds / shares of leading fond companies
• payment in case ofdeath possible
• disability insurance can be integrated
„Konzepttarif“Portfolio
Portfolio• 70% REX• 30% stocks (managed)
• stability of return on invest-ment due to mixture of REX and shares
• low risk through REX
• high yield based on pro-fessional stock manage-ment
• very high profits possible
• disability insurance can be
integrated
13 © 2002 moneyoptimal GmbH
Content
1. Alternatives and legal requirements
2. Your company‘s requirements
3. Our recommendation
4. Facts and figures
5. Benefits for you and your employees
6. For further information
14 © 2002 moneyoptimal GmbH
4. Facts and figures: annual contribution 2.250 €
Male; age 35 years; duration 30 yearsEquivalent to an employer‘s contribution of 4% and annual gross salary of 45.000 €
Life / Pension insurance
guaranteed payment
Investment Pension Konzepttarif
107.000 € 105.000 € 83.000 €
total payment(incl. profit)
251.000 € 230.000 € to 310.000 € 277.000 €
paymentin case of death 90.000 € + profit available balance available balance
guaranteedannuity 579 € 536 € 435 €
total annuity 1.964 € 1.780 € to 2.120 € 2.235 €
contribution67.500 €
payment251.000 €
contribution67.500 €
payment278.000 €
contribution67.500 €
payment285.000 € all total payments are
calculated and not guaranteed
15 © 2002 moneyoptimal GmbH
Content
1. Alternatives and legal requirements
2. Your company‘s requirements
3. Our recommendation
4. Facts and figures
5. Benefits for you and your employees
6. For further information
16 © 2002 moneyoptimal GmbH
5. Benefits for you and your employees
No additional cost for the pension plan(our commission is paid by theinsurance)
We make your life easier by handling the pension plan advising your employees monitoring the legal requirements
We support your HR department(proactive information about legalchanges, know-how transfer how toput it into practice)
We help you increase your attractive-ness for your employees by offeringa special pension plan
Advantages for youas an employee
Every employee will find an optionfitting him perfectly
Individual information about pensionplan
We are the direct contact person –every day
Full-service regarding all questionsconcerning the pension plan
Advantages for your employees
17 © 2002 moneyoptimal GmbH
Content
1. Alternatives and legal requirements
2. Your company‘s requirements
3. Our recommendation
4. Facts and figures
5. Benefits for you and your employees
6. For further information
18 © 2002 moneyoptimal GmbH
...or visit our website
http://www.moneyoptimal.de/
Please contact...
Richard Aigner and/orJürgen Held
moneyoptimal GmbHBajuwarenstrasse 4381825 München
Tel: 089 / 427 207 - 00 Fax - 01
6. For further information