Before the firm's pension plan is put together, it is very important that the client decides whether there should be cover for the next of kin in connection with the death of an employee and whether the client wishes to retain a good employee who is suffering from long-term illness.

By asking such questions of the management, are we able to, in collaboration with the management, define the firm's pensions policy as part of the firm's employment policy.

Of course it is also important that the client in this regard observes any collective bargaining requirements!

Based on the client's pensions policy we can prepare the tender material which will specify the client's wishes with regard to the content of the pension plan, e.g.:

• Lump-sum payment in the event of death
• Annual interest paid to children in the event of death
• Lump-sum payment in the event of disablement
• Annual interest payment in the event of loss of capacity to work
• Lump-sum payment on diagnosis of critical illness
• Treatment insurance ("front of the queue insurance" / Medical insurance / Health insurance)
• Payment of interest on pension funds according to the "mean interest model" and/or option of individual link-savings
• Most straightforward possible health information

When the client has put together a good pension plan in collaboration with Bækmark & Kvist the employees must be informed to this effect.

It is extremely important that this is done in the right way such that the company pension plan is also perceived by the employees as the benefit that it actually is!

Bækmark & Kvist therefore offers to hold a meeting of approximately one hour (e.g. at the end of the working day) in which the content of the pension plan is explained. A pamphlet is issued at the meeting which briefly describes the content of the pension plan so that after the meeting each employee will have a readable description of his or her new pension plan.

The information meeting deals with general matters whilst more personal questions are dealt with in the subsequent individual advice sessions.

In order for the new pension plan to have genuinely positive significance for each employee, individual advice is crucial. We typically suggest an individual advice session of around half an hour per employee. During this session a personal needs analysis takes place, in which the following is accounted for:

• Cover in the new pension plan
• Interaction with social security benefits
• The effect of tax legislation
• Marital status
• Any existing cover

In order for the new pension plan to get off to a good start, it is very important that the client's wages and salaries office sets up the new scheme correctly in good time.
If each employee does not have the correct amount deducted from his pay slip from day one, confusion and dissatisfaction will often result.
Bækmark & Kvist therefore offers assistance to the wages and salaries office and provides a thorough explanation of the various forms which have to be used for, e.g.:

• New employees
• Changes to contributions
• Changes to wages
• Leave
• Leaving the company

All employees taking part will receive a specification of cover from the pension insurance company, and the client will also receive an identical copy for their records.

The policy/specification of cover describes the cover agreed, both in terms of general risk insurance and any individual optional cover.

Furthermore, the employee will be sent an annual insurance statement which, in addition to risk cover, also shows the amount paid-in during the year and the development of pension savings.

In addition to advice and consultancy to the firm and the employees during the start-up phase, it is important to provide regular consultancy services in order to keep pace with a society which is constantly changing character.

We therefore suggest that we hold an annual follow-up meeting with the firm's executive management in which we look back on the year, provide information about new legislation and products (throughout the entire market) and together try to see what the immediate future will bring.

As regards the employees, we are of course always at their disposal with regard to advice as and when it is required, e.g. in the following situations:

• When leaving the company
• Long-term illness
• Early retirement
• Marriage/divorce
• Foreign posting
• Retirement
• The employee's wishes with regard to any changes

In the event of revisions to agreements, regulation of limits of cover, etc., Bækmark & Kvist will provide employee information material.

In this way, the employee is continually made aware of his pension plan such that any changes or adjustments can be carried out in time.

A pension plan should be continuously reviewed and adapted such that the employee and his/her family can continue to enjoy peace of mind with regard to his/her pension.