Ronald, you are one of our colleagues who is enthusiastic about the Arineo lifetime model. Saving time sounds exciting. We all want that. But how does this work at Arineo and what exactly does it mean?
Ronald: This works via our so-called working time accounts. We can save up salary, vacation days, or overtime in these and use them individually at a later date. For example, to work part-time for a while without sacrificing your full salary. A sabbatical or early retirement are other ways of using the saved “time”.
How exactly do I save the time and what happens to it?
Ronald: After signing a participation agreement, you can contribute parts of your monthly gross salary, overtime, or remaining vacation days. Working hours such as vacation, for example, are converted into monetary amounts. The money is not only managed by a trustee company but also invested profitably. The money is then invested in the form of so-called ETF portfolios, which mix stocks and bonds. Care is also taken to ensure that the investment is socially responsible, meaning that the funds are invested in companies that are considered to operate sustainably. The return on investment is also credited to the account.
Wow, you end up with more time than you originally contributed. Could it be that these “savings” are lost, for example, if I change employer?
Ronald: The trustee manages the funds and you can cash them out if you change employer, or they could be taken over by a new employer. In the event of a company’s insolvency, the funds are repaid to the participants. This ensures that not a single cent is lost. This also applies to the investment form – here too, the funds are protected against the trustee’s insolvency. Furthermore, the funds are freely inheritable in the event of the investor’s death.
That all sounds really good. What about the costs?
Ronald: A major advantage is that we don’t have to pay any commission as we would with other investment forms. Additionally, this is so-called gross saving, meaning that the amounts are converted into funds without deduction of tax or social security payments. Tax is only due upon withdrawal. An outstanding feature is that the employer bears all administrative costs.
If I am planning a sabbatical, will I still be insured?
Ronald: During a sabbatical, you are still employed by the company and your salary, including social security and health insurance contributions, continues to be paid. Retirement points will also continue to be accumulated. During the time off, vacation entitlement and any existing company pension scheme contributions remain in place. You can also continue to use your company car.
Thank you very much for this information. One more thing we’d really like to know now: how do you plan to use the time you have saved up?
At the moment, I’m primarily considering taking additional short breaks to spend more time with my family alongside regular vacations and to have noticeable periods of relaxation through extended career breaks. Considering earlier retirement with this accrued time is also a possibility.
Thank you very much for the insights into the Arineo lifetime model.
Ronald Höbler
Solution Architect D365 CE
