Pensions? I'm going to work for Porsche...

[KS]

Just received this in my 'mail':

Porsche improves company pension with performance-related component

Stuttgart. After intensive negotiations, the Board of Management and Group Works Council of Dr. Ing. h.c. F. Porsche AG, Stuttgart, have agreed to reorganise and improve the company pension by introducing a performance-related component. The previous final salary-related system will be converted to a contributions-oriented system with effect from 1 January 2012 comprising a basic and a performance-related component. Under this scheme, the basic contributions will secure the workforce’s current level of provision. In addition, Porsche will in future pay further contributions to the company pension depending on the company’s commercial success. These performance-related contributions will be paid if the return on sales reaches a minimum of 10 per cent. The maximum contribution will be achieved at a return on sales of at least 15 per cent.

“As a result of this new regime, Porsche employees will benefit from the company’s commercial success even in terms of their retirement benefits,” said Thomas Edig, Deputy Chairman of the Board of Management of Porsche AG and Labour Director. “In the process we are reinforcing Porsche’s position as an excellent employer.”

“The negotiations with the Board of Management have been worth it, even if there was no shortage of tough moments,” said Uwe Hück, Chairman of the Porsche Group Works Council. “The workforce is finally receiving its just deserts for its tireless commitment, including in retirement. This is all the more important as the statutory old-age pension is not enough. Due to the performance-related component, company pension payments can increase by up to 50 per cent as a result of the switch. Moreover, the workforce continues to be able under the VarioRente pension scheme to convert part of its remuneration into pension commitment. We are doing all this so that our colleagues don’t suffer poverty in old age.”

[Bruce M]

Missing all the important numbers though....

So they are loosing their final salary pension where the company holds all the investment risk (ie low returns and they have to top up) to a cash pension where the final value is the employee's risk. Mind you, companies never put the full cash value in each year anyway and depend on investment returns to keep up with their obligations.

The big question is how much % of salary are the company contributions (min to max). The staff get no additional pension top-up if the company doesn't make £100 profit for every £1000 of sales (although for the first 6 months of 2011 it looks like they made 20% return on sales )

[KS]

I'd just like a pension...

[left4dead]

I'd just like a pension...

Seconded.

[JB-L]

I'd like a pension that will be worth having when I need it.

[jwhillracer]

I found that my greatest financial benefit came from not having to make the monthly payments........................

JW

[911hillclimber]

I've several pensions.
All of them Mature (?) at 60...
I'm getting my 'Quotes' coming through the post now for a few Final Salary and Contribution....
I'm dissapointed and very annoyed about the Sum Total I can look forward to for the rest of my life....

I'll be working for ever.

[964RS]

I'd just like a pension...

Seconded.

Thirded

[Bob_Salmon]

I'd just like a pension...

That's just being greedy.........

Bob

[964RS]

I'd just like a pensioner...

No surprise there

[myatt1972]

I'd just like a pensioner...

No surprise there

Many a good tune .......

[KS]

I'd just like a pensioner...

No surprise there

Many a good tune .......

Exactly...