PENSION SCHEME ORGANIZERS

An employer, association of employers, professional association or trade union may organize a pension scheme for their employees, i.e. members

There is often the question as to what could be the interest for an employer, in addition to making payments to the state pension fund, to also pay contributions to a private pension fund. First, this is the highest level of corporate social responsibility. Namely, by doing so, employers implement a modern and efficient social program in their organizations, demonstrating care for the most important segment of operations - human capital. Employees do not have to worry not only about their own, but also about the financial future of their families.

Also, by providing an additional source of income for their employees in their old age, employers become competitive on the labor market for new employees, and achieve motivation and loyalty of existing ones.

To organize a pension scheme, the scheme organizer must:
1. pass a decision to organize a pension scheme;
2. conclude a contract on pension scheme with the selected company;
3. obtain an approval for the pension scheme contract from the Ministry of Labor and Social policy.

The organization of a pension scheme by more than one organizer (at least two) requires the concluding of:
a. a contract between organizers;
b. a contract between the organizers and the company.

The organizer of the pension scheme must ensure equitable conditions of membership in the pension scheme for all employees/members, but can encompass a specific group of employees/members in another pension scheme under specific conditions. An employee/member can refuse membership which can by no means be a requirement for employment or membership in a trade union or other form of organization.
A pension scheme member is also a fund member, and if his employment or membership with the organizer are terminated, he can remain a member of the same fund or transfer his individual account to some other fund.

The organizer must inform every employee/member of:
- conditions of the pension scheme;
- approval obtained from the Ministry for the pension scheme contract;
- termination of his membership in the pension scheme.

In the event that the organizer has concluded the pension plan contract with several pension providers, the organizer must provide its employees with the possibility of membership choice of the provider.

In addtion, the organizer must inform the company about the termination of employment, i.e. membership in the pension scheme, as well as of the death of a pension scheme member.
If the organizer intends to dissolve a pension scheme, he must inform the members, the company, and the Ministry of such intention, at least three months before the planned dissolution.
An organizer may pay the pension contribution for a member of the scheme from own funds, or by deduction from the salary of the employee/member, but only with his prior consent.
The level of pension contribution can be changed, but must amount at least to a minimum of RSD 1,000.

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REFERENCE LIST:

Employers that pay additional pension contributions for employees:

Telekom Srbija a.d.
DIN Philip Morris
AIK banka
Agro banka
Privredna banka Pančevo
Privredna komora Srbije
Regionalna privredna komora Novi Sad
Pravni fakultet Novi Sad
Beogradske elektrane
Gradska opština Novi Beograd
JP Vodovod Pirot

and over 900 other employers.