Is it possible to switch from branch 23 to branch 21 in a group insurance policy?

Group insurance can provide employees with a supplementary pension. The premiums are invested according to a guaranteed return (branch 21) or in underlying funds (branch 23). Can an employer decide to switch from a branch 23 to a branch 21 group insurance policy?

Yes, if there is a business plan. What is the procedure to follow?

The general rule is that the employer has the right to adapt the method of financing the pension plan (under his or her full responsibility and acting with due diligence). However, this can never result in a decrease in performance. In addition, there are many exceptions and limitations to this. Where workers also contribute personally to the pension plan and the plan applies to all workers in the company, the procedure is subject to the following requirements:

• If the company has a works council, a prevention and protection at work committee or a trade union delegation, this decision must be taken through a collective labour agreement. 
• In all other cases, an amendment of the working regulations is sufficient. 
• If the plan applies to all workers, the employer must first seek the opinion of the works council or, failing that, the prevention and protection at work committee or, failing that, the trade union delegation. 

If the plan applies to only some of the workers, the employer must first seek the opinion of the works council or, failing that, the prevention and protection at work committee or, failing that, the trade union delegation representing the workers concerned. The other condition is that at least 10% of these workers must request it and be represented on the works council, the prevention and protection at work committee or the trade union delegation. In the absence of a works council, a prevention and protection at work committee or a trade union delegation, the employer must inform the workers concerned individually in advance.

Find out here why NN group insurance can make a difference for your employees.