Contributions

Five things you need to know about the contributions in the Mars Pension Plan 2018!

Very convenient – let’s get started together.
Both you and Mars each contribute a fixed amount in the first level. Without having to become active, you take part in the pension plan and Mars contributes the same amount on top of that. Of course, you can also decide against participating in the pension plan. [link to the corresponding page] Please note, however, that you then will have no claim to the contribution from Mars.
Favourable when it comes to tax – contributions from gross income.
All your contributions come out of your gross income. That means they are tax-free and even exempt from social security contributions up to a limit. In plain English that means: You pay much less net than what flows into the Mars pension plan gross.
Flexible – decide anew each year
The agreement applies for 12 months on principle, starting in September of each year and is concluded until revoked. In the period from 1 June until 5 September of each year, you can modify your contributions in levels 2 and 3 to your personal situation – we will send you a timely reminder. In addition, new entrants can make a decision on the contributions of levels 2 and 3 up to the 10^th of each month using the online pension portal. Please note: This is only possible until next August.
Convenient – make a decision until you’d like to change it
You make your decision on the conversion of salary entitlements into pension entitlements until revoked. In this way your company pension plan will also continue to run beyond the September of the following year without you having to become active again the next year. The Mars service: We will send you a timely reminder if you’d like to modify your decision.
Lots of leeway – the contribution limits
In total over all levels together you can add up to 20 % of your contributory income.

Five tips on your contributions!

The sooner the better
Take advantage of the compound interest effect! The longer you (together with Mars) save for the future, the more contributions and above all interest comes together. So, why not jump in right away!
If you look after the pennies, the pounds will look after themselves
Better a small contribution than no contribution at all! The compound interest effect makes itself noticeable on all levels even with smaller sums. Over the years a pretty sum can come together. It’s best to test the pension calculator in the pension portal!
Regularly check the amount of your contributions
The longer and the more you pay in, the higher the Mars contributions and the interest! For that reason you should regularly take a critical look at your contributions – the easiest is when you’re extending your contribution payment in the portal anyway. Anything else going on?
Implement your AVP
Did you know that in addition you can also add your Annual Variable Pay (AVP) and in this way further expand your pension plan? You have an opportunity for this once a year.
Keep an eye on your state pension
Those who keep an overview, plan the best. Every once in a while, check where you stand with your state pension insurance. That’s a good starting point for determining how high your pension gap (that’s the difference between your last net salary and the state pension) will be. In the pension portal you can use the pension calculator to then plan your contribution to the Mars pension plan.

Level 1

You’re not saving for your future alone.

The principle is quite simple: Both you and Mars each contribute a fixed amount in the first level. Without having to become active, you take part in the pension plan and Mars automatically contributes the same amount on top of that. The advantage: Your contribution is tax-exempt – meaning, net you pay clearly less.

Here’s how your contribution is calculated

Your annual contribution is converted to monthly contributions; they are automatically retained from your salary. In the pension portal you can see the current amount of your contribution and your contributory income.

Here’s how the Mars contribution is calculated
Mars matches your amount: 2 % of your contributory gross annual income.

Should your income lie above the contribution assessment ceiling (CAC), Mars will give you 2 % for the income up to the CAC and 5 % for the included income components above the CAC. The background: The CAC is the contribution assessment ceiling, up to which contributions to the state pension system are to be paid. That means: If you earn above the CAC, you are not building any state pension claims for these income components. Your pension gap is therefore especially large.

Of course, you can also decide against participating in the pension plan. This is possible up to the 10^th of your first month of employment in the online pension portal. Please note, however, that you then will have no claim to the contribution from Mars. Should you therefore decide against the pension plan, you are giving away hard cash – and the possibility of building yourself a pension buffer at attractive terms and conditions.

Level 2

You cash in on the support.

On Level 2 you flexibly determine how much you want to invest in your pension plan. And the best of all: the more you invest, the more Mars support you take with you. That’s because Mars matches your contribution.

The contribution limits: At the maximum at this level you can include 3 % of your contributory annual income up to the CAC plus up to 7 % of your income above the CAC.

Your annual contribution is converted to monthly contributions; they are retained from your salary.

Don’t forget: Due to the tax advantage, your net contribution is clearly less than the gross contribution that actually flows into the Mars pension plan.

Set contribution amount and remain flexible
You freely determine within the contribution limits how high your contribution should be. Mars matches that amount. After that you can modify the contribution or suspend it once a year. And all this very simply online in the pension portal.

Stufe 3

You’re closing the gaps.

If you want to close your pension gap even further, take advantage of Level 3! You can top up your contributions even further, to a maximum of 20 % of your contributory income in all 3 Levels together.

In addition, once a year you can also include a part of your AVP (Annual Variable Pay).

Although Mars no longer makes an additional contribution at Level 3, you can still profit from the attractive interest and the tax advantages – because here too your contribution comes from your gross income.

Your annual contribution is converted to monthly contributions; they are retained from your salary.

Capital-accumulation benefits
If you receive capital-accumulation benefits, you also have the option of using them to top up your pension plan. If you have any questions, please refer to Payroll.

MARS Pension plans