The contribution to long-term loyalty is even more relevant: an attractive company pension strengthens loyalty and underlines that the company assumes responsibility beyond active working life. The Dow Pension Plan is a nationwide, modular company pension system that combines various components. The total investment volume of the plan will significantly exceed the double-digit million range in 2026. The core components of the system include automatic participation with an opt-out option to ensure a high level of participation while maintaining freedom of choice. The contributions include a basic contribution financed by the employer and disproportionate matching contributions as soon as employees make their own contributions. Dow has the company pension fund assets invested in a capital market-oriented manner, so that there are attractive return opportunities for employee contributions. With a view to risk management and stability, the employer contributions are partially financed internally. Dow cooperates with Allianz as an asset manager and as an insurance partner for the externally financed components. The company pension plan model is also secured by mechanisms that ensure minimum benefits and stability.
From the moment they enter the benefit phase, those entitled to benefits can choose between flexible payment options: lump sum, installments, pension or combinations. In addition, Dow grants employees immediate, collectively organized risk insurance in the event of occupational disability or death – without waiting times or health examinations. “The model is deliberately kept simple and can be adapted to different phases of life,” explains Christian Schmalenberg, Senior Total Rewards Specialist at Dow Germany. “The special thing about the Dow Pension Plan is the consistent break with established structures.” Instead of optimizing existing systems, the company radically simplified and rethought them from the perspective of the employees. “The combination of automation, high employer support, capital market participation and security leads to an exceptionally high level of acceptance,” adds Hanna Sitzler, Senior Project Director at Dow Germany. “In addition, the model is designed to be fair across all employee groups – regardless of collective bargaining status or company.” The feedback from the workforce on the new company pension system is positive. The high level of employer support, the transparency and the simple functionality of the model are particularly appreciated. The participation rate for new entrants is almost 100 percent.
