Working time account

Flexible working hours are playing an increasingly important role in the economy. Working time accounts offer employers an additional staff management tool, and can also serve as substitutes for partial and early retirement schemes. From the employees’ standpoint, working time accounts offer attractive advantages for life and retirement planning, can help motivate staff and keep qualified staff loyal to the company.

The principle behind working time accounts couldn’t be simpler: employees pay time units and/or pay components into their accounts, out of current salary, bonuses, unused holiday allowances or overtime, for example. Assets are invested gross, that is, before deducting taxes and social security contributions. Employer and employee can agree to use the assets saved up to release the employee from work for a long period of time (long-term working time account) or for early retirement (lifetime working time account). Tax and contributions are deducted retrospectively, that is, when assets are paid out to the employee.

Your benefits at a glance:

  • Active management of company age distribution
  • Motivates and binds contributors
  • Cost-effective alternative to partial retirement schemes
  • Could replace expensive early retirement schemes

DekaBank can advice you on introducing working time accounts at your company. You have three different product options to choose from:

Deka-ZeitDepot Flex

Deka-ZeitDepot Flex is a long-term working time account which can be drawn on at any time in principle, by agreement between employer and employee. Assets are invested in a security-oriented DekaBank Group money market fund that includes a guarantee.

Deka-ZeitDepot Plan

Deka-ZeitDepot Plan is a working hours account in which employees are released immediately before they reach statutory retirement age. This means this product can be used optimally as a substitute for early and partial retirement schemes. Since the savings period is generally lengthy, DekaBank offers an appropriate fixed-term fund for each employee using a lifecycle model that also includes a guarantee that can be called on at a scheduled time. Our Internet-based management platform, Deka-ZeitDepot Online, is used to perform a fully automatic assignment of the appropriate fund to each employee.

Deka-ZeitDepot Block

Deka-ZeitDepot Block is a working time account which can be used to incorporate the insolvency protection available to block model partial retirement. Assets are also invested in a security-oriented DekaBank Group guaranteed money market fund.

With all these options, DekaBank offers you a full service one-stop shopping package: advising on introducing working time accounts at your company, forms and reporting, capital investment and statutory insolvency protection for assets and administration using a user-friendly Internet-based managing platform.

Under the basic working time account sequence - contributing, managing and using assets - employers can design each phase of the process individually, setting the framework conditions for individualising them via collective wage agreements. DekaBank can assist you with all the necessary steps in implementing working time accounts at your company.

Product benefits for your staff at a glance:

  • Manage working hours flexibly for life
  • Flexible endowment pension modules
  • Defer tax and social security contributions
  • Released from work with full social security contribution
  • Retire sooner without compromising on pensions

§ 7d of the German Social Code (Sozialgesetzbuch) IV deals with the guarantee of working time account assets against employer insolvency, and requires employers to introduce “appropriate measures” relating to insolvency protection.

With Deka-ZeitDepot, DekaBank offers two suitable models of insolvency protection for protecting the assets in working time accounts:

Assignment model

The assignment model is a simple, low-management means of meeting statutory insolvency protection requirements. DekaBank and the employer sign an asset protection contract. At the same time, DekaBank opens a custodian account in the employer’s name and pledges it to DekaBank. The employees then become party to the asset protection contract, assigning their claims on the assets against the employer to DekaBank. If the company becomes insolvent, DekaBank assumes full responsibility for processing and disbursing assets.

Trust model

The trust model is also simple and easy to manage. DekaBank’s group trustee (DekaTreuhand GmbH) and the employer sign a trust agreement. At the same time, DekaBank opens a custodian account on the employer’s behalf, with the trustee as the custodian and bare owner and the employer the beneficial owner of the assets. The trustee manages the assets in accordance with the investment guidelines as agreed and arranges for disbursements to be made as pensions become due or if the employer becomes insolvent.

Which insolvency protection model is right for you depends on the actual situation at your company (number of staff involved, assets, accounting rules). DekaBank can assist you in selecting the right insolvency protection model and providing standardised contract structures

Deka-ZeitDepot offers you a comprehensive solution for all recording, reporting and administrative work involved in introducing working time accounts. All the steps required can be handled via a user-friendly Internet-based management platform (Deka-ZeitDepot Online), from contributing and withdrawing assets through producing forms and reports automatically to recording and filing all relevant data. A user-friendly menu system guides you through all the steps required and assists you with automatic processes.

Rollout costs are low: DekaBank opens a custodian account for each employer to which all that employer’s fund units are booked. Deka-ZeitDepot then divides the units in the DekaBank custodian account amongst individual employees. There is an automatic interface between Deka-ZeitDepot and DekaBank Depot via which securities transactions can be booked to DekaBank Depot automatically in accordance with the company’s instructions in Deka-ZeitDepot Online. This avoids delays in contribution and takes the load off personnel resources.

Your benefits at a glance:

  • Fully-automated securities trading process via Deka-ZeitDepot Online
  • Fund prices updated daily, and your staff’s entitlement accounts with them
  • All relevant documents and data filed automatically
  • Comprehensive standard reports available from Deka-ZeitDepot Online daily
  • Release calculator for producing illustrations
  • Handles assets in event of insolvency
  • Long-term product support by DekaBank, including call centre for queries about Deka-ZeitDepot