Occupational pension solutions (LPP): what options are available?

Occupational pension solutions: a strategic issue for companies 

Occupational pension schemes (LPP) play a key role in a company’s social policy. Often perceived as complex, they are nevertheless a powerful lever for attracting and retaining talent, while ensuring long‑term financial security for employees.

Choosing the right LPP structure requires an approach aligned with:

• the size of the company,

• its financial capacity,

• its social ambitions,

• and the profile of its workforce.

The statutory minimum solution

The statutory minimum LPP solution is a basic pension plan that strictly meets the legal requirements set out by occupational pensions law.

It is generally characterised by:

• coverage limited to the legally insured salary,

• a pooled and relatively conservative investment approach,

• a simple and cost‑efficient structure.

This type of solution is often chosen when a company is newly established or when financial flexibility is still limited.

The wrap‑around (envelope) LPP solution

The wrap‑around (envelope) solution combines the mandatory statutory portion and an extra‑mandatory component within a single plan.

It allows companies to:

• insure a broader share of salaries,

• simplify administrative processes,

• offer more consistent benefits across the workforce.

This solution is widely used, as it represents a balanced compromise between simplicity, flexibility and social attractiveness, regardless of company size.

The extra‑mandatory solution or executive plan

The extra‑mandatory solution, sometimes referred to as an executive or supplementary plan, is added on top of a basic plan and usually targets a restricted group of employees, such as senior managers or key profiles.

It offers:

• enhanced benefit levels,

• improved coverage for higher salaries,

• greater flexibility in defining contributions and benefits.

Such solutions address specific challenges related to talent retention and pension optimisation for higher earners.

Advanced arrangements such as “bel‑étage” plans 

In certain cases, more advanced pension structures – such as so‑called bel‑étage plans – may be considered. These arrangements are designed for specific profiles, typically within companies with higher salary levels or particular strategic needs.

Given their complexity and highly customised nature, such solutions require a thorough analysis and tailored advice to ensure full alignment with the company’s objectives and governance framework.

Choosing the right LPP structure

There is no one‑size‑fits‑all solution. The appropriate LPP structure depends on several factors, including:

• the company’s size and stage of development,

• its salary policy,

• its approach to risk management,

• employees’ expectations,

• long‑term objectives in terms of pension provision and social governance.

A structured analysis helps identify the most coherent and scalable solution.

LPP solutions within a holistic pension strategy

Occupational pension solutions should be integrated into a global pension‑planning approach, taking into account:

• OASI benefits,

• individual pension provision (3^rd pillar),

• career and retirement planning,

• taxation and wealth‑transfer considerations.

A well‑designed LPP structure contributes over time to employees’ financial security and to the company’s overall stability.