Statutory Pension Plan - this is a mandatory, uniform, DB pay-as-you-go system with (i) an earnings-related pension combined with (ii) a minimum pension. This is funded by mandatory contributions from the employer and employee. Eligibility criteria and the pension amount is determined by law. The amount of the pension is calculated with respect to the employee's age, length of employment and the amount of contributions paid.

Voluntary pension plan - in addition to the statutory pension plan, employees and/or employers can also make voluntary contributions as an additional benefit. The terms and conditions of this privately funded pension plan are contractually defined, within the relevant legal framework.

It is important to clarify whether the seller contributes to a voluntary pension plan for and on behalf of the employees as an additional benefit, and, if so, whether such additional benefit is given discretionally or whether it is contractually binding on the transferor employer (i.e., whether it is possible to withdraw or change the benefit in the context of the transaction). If the buyer is obliged, or decides, to continue to provide such additional pension benefit, the requirements to effect the change of the contributing employer in respect of the transferring employees' accounts should be discussed with the voluntary pension fund early on in the transaction to avoid any technical issues and ensure continuity.