Cafeteria Plan

How does it work?

1. You take out an insurance contract.
2. You set a budget for all members of the plan. This can take the form of a percentage of salary or a fixed amount.
3. You choose from among a wide range of formulas the guarantees you want to offer to a specific category of your employees:
   • A savings component for the supplementary pension;
   • Death cover paid to the beneficiaries if the employee should die before reaching retirement age;
   • Supplementary compensation in the event of accidental death;
   • A replacement income in the event of work incapacity;
   • Premium insurance to guarantee that the pension contributions continue to be paid in the event of work incapacity.
4. You can choose for which guarantees you want to offer your employees a degree of flexibility and the various options that are possible within those guarantees.

Advantages

Employer:

• An online application means you can easily carry out and track your transactions and your usual Employee Benefits tasks.
• The Cafeteria Plan enhances your pay package (motivational HR policy), boosting your staff retention and helping persuade new candidates to join your business.

Employee:

• Your employees can consult and self-manage their Cafeteria Plan whenever they want.
• Real-time simulations let them display the impact of each potential action on the capital sum they will receive at retirement age, helping them to make the best choices.
• Within the budget you have made available as employer, your employees can choose the cover they want according to their individual needs.
• If an employee wishes to purchase or renovate a property in the European Economic Area, he or she can request an advance on the accrued reserve.

Good to know

• You have to respect the law on supplementary pensions when setting up and adjusting the Cafeteria Plan.
• Rather than paying a cash bonus to your employees, you can pay all or part of it into a Cafeteria Plan. Not only is this more beneficial to staff, the bonus plan also enables the employer to reward good performance in a tax-efficient way.

Useful link(s)

AG Employee Benefits website

AG Insurance sa/nv – 53 boulevard Emile Jacqmain, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0404.494.849 – www.aginsurance.be. Accredited insurance company licenced under code number 0079, under the supervision of the National Bank of Belgium, 14 boulevard de Berlaimont, 1000 Brussels.

BNP Paribas Fortis sa/nv, 3 Montagne du Parc, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0403.199.702, registered with the FSMA under n° 25.879A and acting as a contractually appointed insurance agent on behalf of AG Insurance sa/nv.