Company pension scheme

The company pension scheme is a supplementary pension that employees can build up through their employer. It supplements the statutory pension and is intended to help maintain the standard of living in old age.

Looking safely into the future

Company pension scheme - what is it?

A company pension scheme is not only an important building block for financial security in old age, but also a powerful tool for employee retention and motivation. A company pension plan offers the security that your employees and you need for a carefree future.

Facts & Figures

0 % is the average interest rate for company pension plans per year

Um 0 % increase in participation in the company pension scheme

0 Mio. € is the annual premium volume for the company pension scheme

Your advantages at a glance

The company pension plan enables your employees to provide for a carefree retirement. They benefit from tax advantages and additional protection that offers them financial security in old age.

Tax benefits

Contributions are tax-deductible and reduce taxable income

Interest-bearing credit balance

Return through interest-bearing deposits

Flexibility

Adjustment of contributions to personal circumstances

Preventing poverty in old age

Effective protection against poverty in old age

FAQ on company pension plans (baV)

We have summarized the most frequently asked questions on the subject of occupational pension provision (baV) for you in our FAQ. Our experts will also be happy to provide you with individual advice.

Why is occupational pension provision important?

Occupational pension schemes are important because the statutory pension is often not enough to maintain the standard of living you are used to in retirement. The occupational pension scheme allows employees to make additional provision for old age and benefit from tax advantages.

How does the occupational pension scheme work?

Employees and employers pay contributions into a company pension scheme. These contributions are often deducted directly from the gross salary (salary conversion) and invested in a pension fund, a pension fund, direct insurance, a relief fund or a direct commitment.

What implementation channels are there for occupational pension schemes?

Direct insurance: a life or pension insurance policy taken out by the employer on behalf of the employee
Pensionskasse: a legally independent pension fund that provides pension benefits
Pension fund: a legally independent pension fund that invests in shares and other securities
Unterstützungskasse: a legally independent pension fund financed by the employer
Direct commitment (pension commitment): The employer undertakes to pay the employee a specific benefit at retirement age.

Who pays the contributions to the occupational pension scheme?

The contributions to the occupational pension scheme can be paid by the employee, the employer or both together. They are often financed through deferred compensation, where part of the gross salary is paid into the occupational pension scheme.

How high should occupational pension contributions be?

The amount of the contributions depends on individual needs and financial possibilities. It is advisable to seek advice from your employer or a financial advisor to determine the optimum contribution amount.

What tax advantages does the occupational pension scheme offer?

Contributions to occupational pension schemes are generally exempt from tax and social security contributions up to certain maximum limits. This reduces taxable income and lowers social security contributions. However, the subsequent pension from the occupational pension scheme is taxable.

Are there maximum limits for tax-free payments into the occupational pension scheme?

Yes, there are statutory maximum limits. In 2023, up to 8% of the contribution assessment ceiling of the statutory pension insurance (West) is tax-free. The exact amount can be adjusted annually.

What benefits does the occupational pension scheme provide in old age?

The occupational pension scheme pays a monthly pension or a one-off capital payment at retirement age. The exact amount of the benefits depends on the contributions paid in and the return achieved.

When can I take advantage of the occupational pension plan?

As a rule, the occupational pension scheme can be taken out from the statutory retirement age. Some contracts also allow early payment, but often with deductions.

Can I terminate my occupational pension plan?

As a rule, it is not possible to terminate the occupational pension scheme, as it is a pension plan. However, it is often possible to suspend the contributions or suspend the contract.

What happens to the occupational pension scheme if I change employer?

If you change employer, you can usually take your occupational pension scheme with you to your new employer (ported) or continue it privately. The exact regulations depend on the implementation method and the contractual conditions.

Is the occupational pension scheme protected against insolvency?

Yes, occupational pension schemes are generally protected against insolvency. This means that in the event of the employer's insolvency, the accumulated assets do not fall into the insolvency estate and remain with the employee.

Are there statutory regulations on occupational pension schemes?

Yes, occupational pension schemes are clearly defined by the German Company Pensions Act (BetrAVG) and other statutory regulations. Among other things, these laws regulate the entitlements of employees and the obligations of employers.

Can I combine the occupational pension scheme with other forms of pension provision?

Yes, it is possible and often makes sense to combine the occupational pension scheme with other forms of old-age provision such as the statutory pension, private pension insurance or Riester pension in order to ensure comprehensive old-age provision.

Employee benefits

The right employee benefits from a single source - our team of pension experts is on hand to help you find suitable benefits packages for your employees and your company that are precisely tailored to your individual needs.