Discretionary pension benefits

In accordance with par. 151 of the EBA guidelines on sound remuneration policies under Directive 2013/36/EU, 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. Routine employment package means ancillary components of remuneration that are obtainable for a wide population of staff or staff in specified functions based on predetermined selection criteria, including, for example, healthcare, childcare facilities or proportionate regular pension contributions on top of the mandatory regime and travel allowance. Par. 151 of the EBA Guidelines on sound remuneration policies under CRD explicitly limit the notion of “category of staff” to a wider population than a single individual. As such a single individual cannot constitute a category. However, the executive committee could be considered as a category of staff.  Another example, two persons effectively directing the business of the institution could be considered as a category of staff. The EBA guidelines on sound remuneration and practices contain additional supporting evidence of this position in its Par. 208, which states that “…, the remuneration policy may provide for a different ratio for individual identified staff members belonging to a certain category of staff compared with other staff members included in the same category of staff ”. It appears clearly that a “category of staff” is, for all intents and purposes, understood as being a gathering of several staff members