Services

Employee Pension Plans (EPP) and Employee Capital Plans (ECP)

Our specialisation in this respect includes:

• advising on the functioning of EPP and ECP, in particular analysis of workplace agreements on EPP, agreements on the management and maintaining of ECP,
• registration proceedings before the Financial Supervision Authority,
• support in negotiations and consultations with trade unions and employee representatives,
• advising on changing the entity that manages the EPP.

General information:

EPP

An Employee Pension Plan may be established in the form of: (1) a pension fund, (2) an agreement requiring an employer to transfer the employees’ contributions to an investment fund, (3) a group life insurance agreement for employees concluded with an insurance company in the form of group life insurance with an insurance capital fund, (4) foreign management.

The employer may maintain more than one EPP if: (1) it acquires an employment establishment as a whole or an organised part of an employment establishment, or it acquires the stock of a pension company, or (2) in the event of a merger of employment establishment that maintain such programmes.

In the above situations, in order to propose collecting funds in one EPP, within three years from an acquisition or merger, the employer is required to amend the workplace agreement, and (1) terminate or amend the agreement with the financial institution, or (2) establish one pension company from the two merged companies and cause the takeover of the pension fund by one of them and dissolve the other one or sell the stock of the pension company.

ECP

The employer enters into an agreement on the management of ECP with defined date managed by one investment fund company, PTE, an employee pension fund, or an insurance company.

If the an employment establishment of an enterprise acquires another employment establishment as a whole or an organised part of an employment establishment, or there is a merger of employment establishments that maintain ECPs ,the employment establishment that acquires the enterprise or an organised part of an enterprise or is the dominant party in the merger, has an obligation to conclude, within seven days of that acquisition or merger, agreements on managing the ECP on behalf and in favour of the employees with the same financial institution with whom the other employment establishment concluded an agreement on ECP management.