The employer's supplementary pension
In Luxembourg, many people benefit from a pension plan offered by their employer. Even though it is still optional, this system constitutes the second pillar of the pension system in the Grand Duchy.
The employer can finance this pension plan in the form of internal or external financing (from an insurance company or a pension fund).
Bruno, retired accountant, can only rejoice: "I worked for 20 years in a service company that had put a supplementary pension scheme in place. In addition to my legal pension, I am now receiving a supplement in the form of a life annuity. "
With this type of complementary scheme, the employer has a great asset for recruiting and retaining his teams. This can even be an alternative to a salary increase, with many benefits for both parties.
If the plan allows, employees can make personal contributions to this supplementary pension scheme, with tax deductions as the key.
Finally, note that in the form of a life annuity or a lump sum, supplementary pension benefits are not taxable in Luxembourg.