PH&C INNOVATION IN 2007

New pension system and mode of operation
On 1 January 2007 PH&C launched new pension regulations. The resultant changes affect both members and employers.

Basic scheme and supplementary schemes
The new pension system encompasses a basic pension scheme and supplementary schemes providing for extra pension rights and surviving dependants’ pensions. The basic pension scheme is compulsory for all employees in the hospitality and catering industry between the ages of 21 and 65. Supplementary schemes are voluntary.

Contribution-free threshold and annual salary cap
The new system allows members to build up higher pensions than under the previous provisions. Unlike the earlier system the new basic scheme provides for a contribution-free threshold and a cap on pensionable annual salaries. That means contributions and pension accrual are calculated over a smaller percentage of salary.