Operational retirement provision

Operational retirement provision is not a new invention: Since the 18th century already, there were efforts from the workers to help those former employees who could not work anymore due to age and illness in some enterprises in Germany. However, then, operational retirement had little to do with the form in which it is presented to us nowadays.

Operational retirement provision is growing more and more important due to the predictable deficits of lawful retirement provision. For instance, enterprises give their workers the possibility of converting part of their wages into operational retirement provision. Here, there are different models: Pension funds, assistance funds, direct benefits and direct insurance. Because operational retirement provision enjoys tax privileges, it is attractive for both employers and employees.