An individual DC scheme must at least have the following elements in addition to the other conditions in this chapter:
- an accrual ambition of 1.875% of the pension base per participation year;
- the deductible is the minimum state pension deductible permitted by the Tax and Customs Administration;
- the DC graduated scale published by the Tax and Customs Administration based on 3% actuarial interest, graduated scale 2;
- the possibility to continue to invest after the retirement date.
At the beginning of the consultation in connection with a request for approval procedure based on Section 27, paragraph 1a of the Works Councils Act, the employer notifies the trade unions in writing of the proposed transition to an individual DC scheme in time.
At the time of the transition to an individual DC scheme, the employer determines the difference in costs between the existing and the proposed new pension scheme. The employer shares this information with the employee representatives, after which it will be examined reasonably whether and, if so, which part and in which form the difference in costs can be refunded to employees.
The importance of professional support in the event of such a transition is emphatically pointed out to the employee representatives and reference is made, in particular, to the expertise of the trade unions.