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.”