HYBRID

RETIREMENT PLAN

The managing director who is also a shareholder with a minimum of 10% of the company’s shares (DGA) occupies a special position within the organization. Not only is there the position as a shareholder but also the position as an employed director.

This special position has also made its translation in the field of pensions. Unlike employees or managers in paid employment, the DGA is not obliged to build up the pension with a pension insurer or fund. This is because the DGA can also build up its own capital.

A DGA that chooses this is entirely responsible for ensuring that on the retirement date, or in the event of death before this date, there is sufficient capital to make the promised retirement benefits without this being borne by the business organization.

However, practice shows that too often the pension contributions (pension contributions) are only processed administratively and that there is no question of actual capital formation for the benefit of the pension.