Pension

Bonus plan

Reward and motivate your staff members with a tax-efficient bonus plan. An essential feature of a modern and attractive remuneration policy.

Tax benefits

Allocating (a portion of) a bonus to a group insurance plan is a more tax-efficient solution than a cash payment, both for the employer and the employee.

Flexible compensation for a job well done

Design a compensation and reward policy that reflects your company culture and vision.

Take out a cash advance

Your staff can already reap the benefits of their supplementary pension before they reach retirement age.

Streamlined data exchange

Say goodbye to mounds of paperwork. With AG EB Online, it is quick and easy to enter and update staff member data.

My Global Benefits

The ideal digital solution for your staff. It’s the go-to place for them to check the size of their supplementary pension nest egg and even manage their choices.

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Reward your staff for outstanding performance in an effective way

As an employer, you want to reward your staff for a job well done. A year-end performance bonus is, of course, an option, but as you probably know, your staff members don’t actually pocket much once the taxman has taken his cut. A bonus plan works out to be a better alternative. The bonus is allocated to a group insurance plan instead. All premiums paid into this type of plan are eligible for favourable tax treatment, for you as well as your staff. A win-win solution.

See also

An interesting alternative to traditional cash bonus payments

With a traditional cash bonus, your staff members end up with less than half of the gross amount in hand – and this is the best case scenario! A bonus plan is a better alternative as it comes with tax benefits for both you and your staff.

Tax benefits for your staff

With a bonus plan, a portion of your staff members’ variable pay is allocated to a group insurance plan. As premiums paid into this type of plan are taxed at a much lower rate than traditional cash bonus payments, your staff members will walk away with 73-74% of their bonus in hand, significantly more than with direct financial compensation. And when invested in a Branch 21 or Branch 23 fund, the amount could be even higher. Your staff member will undoubtedly appreciate that.

And benefits for you as well

Employer contributions on cash bonuses can be as high as 25%. If, however, you opt for a bonus plan solution, you’ll only have to pay 13.3%. On total company-wide bonus payments, this can easily add up to hundreds and thousands of euros.

Experience the many possibilities for you and your staff

A custom-designed solution that’s right for your company

A bonus plan is more than just a tax-efficient advantage. It’s an integral part of a flexible remuneration policy that you can tailor to fit your company culture and vision:

All types of performance bonuses, year-end bonuses and gratuities can be fully or partially integrated in a bonus plan
A bonus plan can transform an existing bonus system or serve to create a new pay structure
A bonus plan can be set up for specific categories of employees
Payments into a bonus plan can be allocated differently according to age and seniority

With or without a guaranteed return

Premiums paid into a bonus plan are invested for the long-term. Depending on your risk appetite and risk profile, you can select an investment vehicle with or without a guaranteed return

If you invest the premiums in our Branch 21 fund, you get the security of a guaranteed return, plus annual (variable) profit sharing may be also be awarded.
If you invest the profit sharing in a Branch 23 fund with no guaranteed return, you can earn excess ROI based on your own self-defined risk profile. This return will vary based on the economy and financial market performance.
You also have the option to invest 100% of the premiums in Branch 23.

Your AG Employee Benefits contact person will be happy to advise you and help you choose the best option for your company.

Cash advances

Another option is to allow your staff members to take out a cash advance on their supplementary pension benefits. They can apply a portion of their accrued pension reserves towards buying or remodeling real estate or to pay off a mortgage loan, before they reach retirement age.

Unique plus point: digital support

AG Employee Benefits has capitalised on the digital revolution to provide additional value to its customers. For the benefit of you and your staff members, we’ve developed a unique digital support that offers a multitude of possibilities, all in a user-friendly environment.

AG EB Online

Whether it’s to enrol new employees, manage existing plan participants or transfer other data, you’ll be happy to know that your days of endless paperwork are over. It’s all right at your fingertips with our unique, user-friendly web application.

Find out more about AG EB Online

My Global Benefits

The market’s very first digital supplementary pension platform for employees. In just a few keystrokes, your participants can check the size of their supplementary pension as well as their death benefit coverage or even their healthcare plans (if any). My Global Benefits is also the go-to place for your staff to check the status of their selected funds or – if you’ve included this option – to change how they want their investments allocated across the different funds.

More information about My Global Benefits

Want to find out more?

Send in your questions about bonus plan solutions or request a non-binding quote via the contact button.

Do you have a question?

Contact one of our sales managers