How does a medium size company start a pension plan?
In: Economics
They don’t, and often can’t.
They engage existing, licenced, regulated, professional pension companies and offer whatever that company offers on to its employees.
Pensions are a highly-regulated industry and starting a new pension company requires huge investments, insurances, many staff, and a ton of experience, expertise and regulatory checks (i.e. what they are and are not allowed to do with the money they are given for pensions, and what they can and can’t promise in return when people retire).
No company I know of is setting up their own pensions.
They just ring up a few pension providers and they are literally “sold” a pension plan through those companies, which they offer to staff.
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