PENSION SOLUTIONS FOR
PENSION SOLUTIONS FOR EXPATS: WHAT YOU NEED TO KNOW Authors: Isabelle Burigo & Eva-Rebecca Speyer The Swiss pension system offers employees a high standard. How can SMEs maintain it when they send people abroad? With tailor-made solutions, say expat solutions experts Isabella Burigo and Eva-Rebecca Speyer from AXA. Working abroad for a few years? An adventure for expats and their families. To ensure that it does not become one for employers as well, they would do well to plan the secondment of their specialists and experts comprehensively and at an early stage. This includes work permits, relocation, medical coverage, a safe place to live and cultural integration. But that is not all: it is very important to continue with the pension plan. It protects the expatriate and his or her dependents in the event of death or disability and, depending on the case, also includes the continuation of retirement benefits. Carefree departure to the new destination Companies have a responsibility here. Employees want to settle in quickly in the host country and focus on their new job. The employer should offer them the best possible conditions, says Isabella Burigo of AXA: "It's up to the employer to put the package together in such a way that the employee can travel to the new destination without any worries”. She and her colleague Eva- Rebecca Speyer advise international companies and SMEs that are expanding abroad and are looking for a suitable pension solution. Three to six months of preparation The two specialists know from experience that Swiss SMEs sending employees for the first time can be quite a challenge, because the situation is different in every country. According to Isabella Burigo, the company is responsible for checking the requirements profile of the host country for its expat. This can be time-consuming: "You should allow three to six months, in individual cases even up to two years”, says the key account manager. Social security agreements pave the way Question number one is: What about the first pillar? Does the expat remain in the Swiss social security system, i.e., do he and his employer continue to pay AHV, IV and EO contributions in Switzerland? Or does the expat switch to the host country's system? If Switzerland has concluded a social security agreement with the host country, expatriates can remain in the Swiss system for a certain period. To do so, the employer submits an application to its AHV compensation fund. The posting period is usually limited to 24 months but can be extended to five to six years in certain cases. 28 convinus.com
PENSION SOLUTIONS FOR EXPATS: WHAT YOU NEED TO KNOW In the case of occupational pension plans, there is no standard form Once the question of the first pillar has been settled, it is the turn of the 2nd pillar. Here, employers can rely on AXA. It develops customised solutions for mobile employees. For Isabella Burigo, it is essential that AXA meets the needs of the company: "A standard solution makes no sense for expat pension plans”, she says. Many questions have to be answered and factors taken into account: Must there be a local employment contract in the host country? Does the social security coverage in the home country cease to apply because the contribution period is too short? Furthermore, benefits and any gaps in coverage in the host country in the event of death, disability or retirement provision, the question of the optimum currency or the individual needs of the corporate client. As well insured worldwide as at home Some countries require the expat to join the country's social security system. In the event of death or disability, they often do not receive the same benefits as in Switzerland. There are still countries, for example in Africa, that have no pension system at all: "In such cases, an international solution is indispensable”, says Isabella Burigo. With its two international pension solutions, AXA is flexible in this respect. It is the only one to offer a pension plan for mobile employees that is 95% the same as the Swiss BVG solution, via the "Rofenberg" foundation in Liechtenstein. This offer is also attractive for a smaller number of insured, namely from one person to be insured. - Third Country Nationals or Global Nomads can also be insured. For particularly demanding needs or solutions in foreign currencies, it has another option at hand via AXA Luxembourg. Full focus on the new job Even if it does not come without effort, a well-prepared start abroad pays off. With the feeling that one is taken care of in difficult situations, the expat arrives better in the new home country. And one can concentrate on the essentials; one’s new professional tasks. Authors: Isabelle Burigo & Eva-Rebecca Speyer, Axa 29 convinus.com
Expat policy
LinkedIn
Youtube
Instagram
Email