The Work Councils Act (WOR) decrees that employers first consult the Work Councils on any introduction, change or termination of pension funds and obtains its consent. Any arrangements made by the collective labour agreement (CAO) falls outside the Works Council remit. Many collective labour agreements have a sector-wide pension fund (BPF), and some may have a company pension fund (OPF). These funds have their own management that take important decisions.
Companies that do not fall under a pension fund often have a special insurance scheme. In this scheme, the employer offers a pension plan to an employee – specified in the labour contract – which is covered by an insurance company. If any changes are to be made, the Works Council has the right to consent to the changes.
miQ in business is highly experienced in guiding and advising Work Councils in all issues related to insured pensions. Make a free no-obligation appointment