Latvijas Finieris renews Employee Loyalty Fund and signs agreement with Swedbank on accumulating life insurance
As of March 2012, Latvijas Finieris Group companies in Latvia have renewed Employee Loyalty Fund. The Company has signed a contract with Swedbank Life Insurance SE on life insurance with savings.
The goal of Latvijas Finieris Employee Loyalty Fund is to facilitate employee attraction and trust in the Company and take care of employee welfare in the future.
Pauls Ābele, Latvijas Finieris Board Member, Head of Finance Sector: „Money will be invested in low-risk financial instruments. To create the Loyalty Fund, we have signed a contract with Swedbank Life Insurance SE, having an extensive international experience in life insurance with accumulation of funds.”
Daniils Ruļovs, Swedbank AS Board Member, Head of Corporate Banking: „We appreciate the initiative of Latvijas Finieris as a responsible employer taking care of employee long-term welfare. Accumulating life insurance provides opportunity to make larger savings for employees because of Latvian payroll tax-reliefs applied to insurance contributions.”
About Latvijas Finieris Loyalty Fund and Income Security Fund
Loyalty Fund is one of additional elements in Latvijas Finieris remuneration system and it is created in several cycles. Funds accumulated in the first cycle will be available to employees in 5 years, in the next cycles time periods will shorten.
Along with the Loyalty Fund, Latvijas Finieris has also created an Income Security Fund with a goal to maintain workplaces and stability of remuneration as much as possible by paying out income security premiums during cyclical economic downturns.
For example, premium will be paid out of the Income Security Fund if work amount for employees falls because of substantial and prolonged, though still temporary, drop in market volumes, which causes remuneration to fall below the previous level. Besides, there are other circumstances under which the premium will be paid.
Under the guidance of Ministry of Finance and in cooperation with other state and non-governmental organisations and stakeholders, including Latvijas Finieris and Swedbank, proposals and solutions are being discussed with an aim to expand the set of instruments for overcoming cyclical economic downturns.