8.5 Discretionary pension benefits

151.Discretionary pension benefits are a form of variable remuneration. Where the terms of the company’s pension scheme include pension benefits that are not based on performance and that are consistently granted to a category of staff, such pension benefits should not be considered discretionary, but should be considered as part of routine employment packages in line with the section of these guidelines on definitions. Discretionary pension benefits are not severance payments, even if the employee decides to retire early.

152.The institution should ensure that, where a staff member leaves the institution or retires, discretionary pension benefits are not paid without the consideration of the economic situation of the institution or risks that have been taken by the staff member which can affect the institution in the long term.

153.The full amount of discretionary pension benefits must be awarded, in accordance with Article 94(1)(o) of Directive 2013/36/EU and subject to the derogation under Article 94(3) of this Directive, in instruments referred to in point (l) of this Article and:

• a. where an identified staff member leaves the institution before retirement, the institution must hold the full amount of discretionary pension benefits in instruments at least for a period of five years without the application of pro rata vesting;
• b. where an identified staff member reaches retirement, a five-year retention period must be applied to the full amount paid in instruments.

154.Institutions should ensure that malus and clawback arrangements are applied in the same way to discretionary pension benefits as to other components of variable remuneration.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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