Pension plans becoming increasingly important
Demographic shifts are imposing an increasing burden on state pension systems in many of the markets where Continental operates. Company and private pension plans have thus risen in importance.
Our international pension strategy is focusing on switching from defined benefit to defined contribution plans in order to offer both employees and the company a sustainable and readily understandable pension system.
In many countries, Continental promotes private contributions made by employees by adding corporate subsidies to the money they invest. We also encourage employees to pay into a deferred compensation plan. In Germany the employee relinquishes part of his or her pay, which is then invested by the employer in the company pension plan.
In addition, Continental offers a long-term account model to management personnel in all affiliated German companies as well as to all employees, who fall within the area of validity of the collective agreement of the chemical industry. This model offers both the option of a flexible transition to retirement pen-sion and possible leave for qualification measures, parental leave, and care periods.