This is a long-term savings system promoted by a company, entity or corporation for its employees, in which contributions are made and a system of capitalisation followed and the beneficiaries receive certain benefits when the insured contingencies transpire.

Aims of this system of social savings system:

• To complement employee’s retirement funds.
• To optimise salary costs (contributions are exempt from social security contributions, which means that the business salary cost is equal to the amount of the contribution).
• To provide tax breaks.
• To motivate all employees.
• To offer an alternative to other social benefits.