Savings in SEB Pension Fund and SEB Life Insurance
Optimization of salary structure and employee motivation option
- Additional financial guarantees for employees
- Tax breaks for employer – company resource savings
- Option to choose and change contribution volumes and terms
By making payments into SEB pension fund and SEB life insurance on behalf of your employees, you get a chance to attract the most necessary and most valuable employees for your company. Company management has an option to choose the volumes and terms of payments, as well as save company resources by using beneficial tax incentives. Payments into employee long-term accumulation fund will allow you to lower compensations costs, while not lowering employee income, because, by making payments into the pension fund or life insurance on behalf of employees, a company can use all tax incentives, offered by the state.
Special offer
By purchasing life insurance with savings till 15th January, for all employees, for whom you will start accumulating life insurance with savings, SEB Life Insurance offers a free accident insurance in amount of 1500 EUR for 1 year.
For the employer
Saving of company resources
| Expenses for employer, when increasing salary* | ||
|---|---|---|
| Increasing salary | Increasing salary when contributing in life insurance with savings | |
| The amount, for what you want to increase the employee's salary | 50 EUR | 50 EUR |
| Additional costs (employer's social payments) | +12.05 EUR (24.05%) | none |
| Total costs for the employer | 62.05 EUR | 50 EUR |
| Employee benefits |
35.60 EUR (34.26 if Personal Income Tax 23%) -5.50 EUR (employee social payments 11%) -8.90 EUR (Personal Income Tax 20%) or -10.24 (Personal Income Tax 23%) |
50 EUR - (At expiration - Personal Income Tax 23%) |
* This calculation uses the current tax policy, which may change, according to possible changes in the regulatory enactments.
By redirecting part of employee compensations for a long-term accumulative savings, your company can cut down work compensation expenses, without cutting total income of employees, or increase employee income, without increasing expenses for the company.
Smaller tax payments
The state supports long-term investing in savings and insurance by providing tax incentives for companies that take care of their employees. If making payments into employee accumulative savings (both SEB pension fund and SEB life insurance), employer receives incentives for employee income tax and social tax. Read more on "Tax Incentives" section.
More loyal employees
Everyone wishes for a better, more secure and more stable future, and long-term accumulative savings can provide it. Life insurance and insurance against emergencies are additional guarantee for a family that create a stable environment for more productive work.
Reputation of a socially responsible company
Care about employees is important for the company to establish its competitiveness in the market as a socially responsible employer. Orientation towards employees will help company to keep the existing talents and will make the process of attracting new specialists easier.
For the employee
Benefits from life insurance
- Employee receives additional income that can be used for employee's own purposes at the end of successful period of accumulative life insurance (when the insurance agreement term is over).
- Employee can receive savings already after 10 years (if such accumulative savings term has been chosen by the employer).
- Life insurance is a security guarantee for employees – in case of a loss, the family will be financially protected.
- Life insurance accumulated savings are inheritable.
Benefits from investing in private pension savings
- Employee is always the owner of resources accumulated in pension funds.
- Having private pension savings creates a guaranteed stability for retirement age for employees and provides a chance to increase income significantly in addition to the pension provided by the state.
- Employees have a possibility to contribute individual payments to their private pension account that are added to employer payments and increase the savings amount. Besides, employees are entitled to inhabitant income tax incentives also for individual contributions.
- Employee can start receiving private pension starting the age of 55, which is before the state guaranteed pension.
- Private pension, unlike the state pension, is inheritable.
- Employees can easily follow the private pension account situation on SEB Ibank.
The services are offered and provided by AAS “SEB Dzīvības apdrošināšana” (registration number: 40003012938) and AS "SEB atklātais pensiju fonds" (registration number: 40003485047).
|
|
Life insurance |
Pension fund |
|---|---|---|
|
Types of savings |
Profit dependent on the financial markets situation. |
Balanced or active pension plan with profit dependent on financial markets situation |
|
Agreement Term |
From 10 years* |
Not set |
|
Contribution |
The minimum amount of contributions is not specified |
The minimum amount of contributions is not specified |
|
Savings |
Employee receives a the end of the agreement term |
Employee receives starting of age 55 |
|
If employee terminates work contract with the a company, accumulative savings can stay with employer |
Accumulative savings is the property of employee |
|
|
Insurance |
Life insurance and insurance for emergencies |
- |
* Minimum agreement term that is necessary to apply tax incentives.
The services are offered and provided by AAS “SEB Dzīvības apdrošināšana” (registration number: 40003012938) and AS "SEB atklātais pensiju fonds" (registration number: 40003485047).
Making Payments for SEB Life Insurance
- Company has options to choose from – insure and make accumulative savings for all or for select company employees.
-
Employer can make SEB life insurance payments for employees:
- Regularly – once a month, quarter, 6 months or a year;
- Irregularly – choosing the regularity of payments and amounts according to the situation.
SEB Life insurance payment accounts
| АS "SEB banka" | SWIFT code: UNLALV2X | LV35UNLA0002049469816 |
| АS "Swedbank" | SWIFT code: HABALV22 | LV73HABA0001403035913 |
Making Payments into SEB Pension Fund
- Company has options to choose from – making pension fund accumulative savings for all or select company employees.
- Employer can make installment payments into SEB pension fund for its employees either in one pension plan or into several pension plans simultaneously.
- Accumulative savings are possible in EUR.
- There is no minimum payment volume or payment term.
- Company can stop or restart payments at any time, whenever there is such an opportunity – there are no penalties for doing so.
- If your company Current account is at SEB bank, you can prepare Regular payment order on Ibank Business for payments into pension fund that the bank will automatically process with your preferred regularity. We recommend choosing this form of payment to companies whose installment amount will not change.
- Your company can make payments into SEB pension funds at any bank branch – via money transfer from your account or in cash.
- Installments into employee individual pension fund pension plan accounts are transferred no later than the next business day after the day when money is transferred into pension plan's joint account.
After signing the agreement and before making payments into SEB pension fund pension plans the company should fill out and submit electronically to SEB pension fund participant registration and payment record tables.
Payment accounts into SEB pension fund pension plans
| "SEB-SABALANSĒTAIS" | LV02UNLA0001100400100 |
| "SEB-AKTĪVAIS" | LV18UNLA0001100400200 |
The services are offered and provided by AAS “SEB Dzīvības apdrošināšana” (registration number: 40003012938) and AS "SEB atklātais pensiju fonds" (registration number: 40003485047).
SEB Life Insurance Savings Pay-out
- Pay-out criteria to employees of SEB life insurance accumulative savings is set by the employer. Most often employer makes savings as delayed compensation that is paid out to the employee after a successful working period at the company.
- Company can determine cases in which the amount accumulated can be paid out to the employee before the term is over. For example, in case of employee sickness in order to cover treatment expenses.
- At the end of a successful working period and at the end of insurance agreement term employee can receive accumulative savings made by the employer. In order to receive the accumulated capital, employee should visit any SEB bank Client service center and fill out an application.
- During the agreement term the company has the right to discontinue employee insurance and use the accumulated capital as necessary.
-
If during the agreement term employee terminates employment with employer, the company has the right to choose – to transfer accumulated savings to the employee or discontinue employee insurance and use the accumulated capital as necessary. Employer can:
- Pay out accumulated savings to employee;
- Use accumulated savings as down payment for a new employee;
- Divide accumulated savings among current employees;
- Pay money to company as extra income.
SEB Pension Fund Savings Pay-out
- The employee is always the owner of capital accumulated in pension funds.
- Participant of private pension plan can receive pension plan savings starting from the age of 55, but participation in the fund every client can continue until the time of participant's choice.
- Receiving of savings before the age of 55 is possible:
- If participant has received Group 1 disability status for life;
- In case of participant's death – the indicated person or heirs can receive it at any age;
- If participant works in a profession, which has earlier pension age, according to regulations of the Cabinet of Ministers of the Republic of Latvia.
- Private pension savings can be received in one or multiple installments, including irregular parts (amount that remains in the pension fund continues to bring profit), terms and volumes can be freely selected.
- To receive accumulated private pension capital, the participant should visit any SEB bank Client service center, present passport and fill out respective application form. Capital payout is processed within five working days after the application and all the necessary documents are received at SEB Pension Fund.
The services are offered and provided by AAS “SEB Dzīvības apdrošināšana” (registration number: 40003012938) and AS "SEB atklātais pensiju fonds" (registration number: 40003485047).
SEB Life Insurance Investment Programs
The services are offered and provided by AAS “SEB Dzīvības apdrošināšana” (registration number: 40003012938) and AS "SEB atklātais pensiju fonds" (registration number: 40003485047).