Bosch has a long tradition of occupational pensions. At the end of the 1920s, company founder Robert Bosch was one of the first entrepreneurs to introduce a pension scheme for his associates. In addition to providing for retirement, he found it important to safeguard against existential risks such as disability and premature death, given the low general life expectancy at the time.
With increasing life expectancy, the financial situation in retirement has increasingly become the focus of pension benefits. Bosch offers its associates a company retirement scheme as an important supplement to state pension and uses considerable financial resources for this purpose. Further more, associates can increase their retirement benefits through additional contributions of their own. In doing so, Bosch is making use of the possibilities created by the legislature for the tax-exempt use of gross remuneration for company retirement schemes ("deferred compensation"). In addition, Bosch also provides benefits for associates and their families in the event of disability or death.
After around 100 years of commitment to company retirement schemes, Bosch is still regarded as an innovative pioneer in industry circles. The company contributes in many ways to the further development of company retirement schemes and thus makes a social contribution to old-age provision in Germany.
The Bosch Vorsorge Plan
The Bosch Vorsorge Plan, Bosch’s retirement scheme in Germany, builds up individual assets for associates during their period of employment. Bosch pays company contributions, which result from a percentage of the earnings. In addition, there are further contributions in the tariff area (AVWL) and for other entitled persons. Within the scope of the statutory limits, Bosch is supporting contributions from associates who pay deferred compensation with a surcharge of 15 percent.
Flexible for every life situation
When retiring, the Bosch Vorsorge Plan offers several models for the payment of the accumulated assets. The money can be paid out in the form of a monthly pension until the end of life with survivor’s pension entitlement, as a one-time payment or partially in installments, and as a combination of these options. Bosch associates can thus shape their own payments according to their life situation when they retire.
Transparent and personalized
Transparent information on the Bosch pension plan is provided by a separate web portal that is accessible from the Bosch network and available on the Internet with password protection. It provides a wide range of general and individual information on the Bosch Vorsorge Plan and gives insight into the individual retirement assets. A benefits calculator supports the associates to adapt the contributions to personal needs at any time.
Multiple awards
The Bosch Pensionsfonds, in which contributions from the company and associates are paid, is at the heart of financing the Bosch Vorsorge Plan. It is the first company-owned pension fund in the German industry.
The performance of the capital investment only benefits associates. The Bosch Pensionsfonds has no intention of making a profit and therefore provides low administrative costs. The strategy is long-term oriented with a broad mix and diversification of the capital investment. Until age 55 of the associate, the company and associate contributions are invested in an opportunity-oriented way. Thereafter the funds are transferred to a value-stabilizing investment in five annual steps. The investment risk is being reduced by a broadly diversified and long-term investment strategy as well as by the guarantee of the contributions paid by the company. So far, this concept has achieved an average return of around six percent in the investment segment up to age 55 and a return of almost four percent in the investment segment over age 55. With the Fondsrente, beneficiaries also participate in the ongoing performance of the Bosch Pensionsfonds.
Since its foundation in 2001, the Bosch Pensionsfonds has received 30 professional and industry awards at European level, mainly due to its innovative strength and its successful investment strategy.
