Occupational pension scheme
is employer-linked retirement provision atop state pensions: mandatory second pillars (Switzerland’s BVG), auto-enrolment regimes (UK: 8% minimum contributions with 3% employer), quasi-mandatory sector funds (Netherlands), and voluntary plans elsewhere. Obligations attach to employing, not to choosing.
What employers must do per model
- Mandatory pillars: affiliate and contribute from thresholds (see BVG/LPP) — age-banded costs in Switzerland.
- Auto-enrolment: enrol eligible staff, contribute minimums, manage opt-outs and re-enrolment cycles (UK model).
- Sector funds: Dutch industry schemes bind by sector classification — check which fund claims you before hiring.
- Voluntary markets: competitive necessity rather than statute; tax reliefs shape design.
FAQ
What happens to pensions when employees change countries?
Vested rights stay in each country’s system or plan; portability is limited outside specific frameworks. Mobile careers accumulate pension pots per country — offboarding should document each, and assignment policies sometimes compensate for fragmentation.
Do EOR employees join pension schemes?
Yes, wherever schemes are mandatory or quasi-mandatory: the EOR affiliates and contributes as employer (BVG in Switzerland, auto-enrolment in the UK, sector funds in NL). Plan quality above minimums is a provider differentiator worth comparing.