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Unique: occupational pensions in the hospitality industry

Unique: occupational pensions in the hospitality industry

08.05.2018 |

In the hospitality industry, almost everything is governed by a nationwide collective employment agreement, even the benefits and prices for occupational pensions. This is a unique situation which does not necessarily have to be accepted. The alternative solutions for senior management are particularly interesting.


Employment conditions in the Swiss hospitality and hotel industry are governed by the national collective employment agreement for the hospitality industry (L-GAV). In the hospitality sector, this agreement also defines the conditions for occupational pension schemes, which is something that cannot be found in any other industry, explains Martin Smith, pension expert at Tellco pkPRO: “A unique feature is that the L-GAV does not only stipulate the benefits paid out, but also the prices for occupational pension funds. This leads to cross-financing from younger to older employees.”

Considering alternatives

As a result, most pension providers refrain from offering their services to hospitality trades. Consequently, the offering is rather one-sided: occupational pension schemes are almost exclusively managed by the two major trade associations. “The strict L-GAV requirements make sense for the average employee,” explains Martin Smith, “but they make it more difficult to find individualised solutions. Many managers would do well to check the available options and consider alternatives to the major providers.”

Tailored pension solutions

One hotel business, for example, developed a tailored pension solution together with Tellco pkPRO: the employees are insured under the provisions of the L-GAV and also enjoy additional benefits that were worked out with Tellco pkPRO. In addition, the entire senior management team has tailored pension plans. The Managing Director is convinced that this solution is a gain for all employees and makes the company a more attractive employer. It is also reassuring for him to know that his employees are properly insured.

Exceptions to the collective employment agreement

The L-GAV contains exceptions for managers, directors and their family members in addition to various types of businesses, such as canteens which only cater for the companies’ own staff. They could all be insured under better conditions. “Many senior staff don’t even know that this is possible,” explains Martin Smith, “but special pension plans actually make real sense for senior management.”

Find out more about our solutions for hospitality trades

The pension experts from Tellco pkPRO would gladly provide you and your company with personal advice. Get in touch to arrange an appointment.


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