Choose language:
Company pension scheme (bAV) exists, if the employer its employee on the occasion of the employer-employee relationship supplying achievements with reaching the age limit, in case of which disablement assures or in death trap.
The company pension scheme is the second column of the age precaution and in "§ 1 of the operating pension law (BetrAVG) is defined. It is present, if the employer assures to its employee from cause of an employer-employee relationship supplying achievements with age, disablement or death. The company pension scheme can be financed by employer and/or by the employee (payment transformation). The employee can require the payment transformation obligatorily; it is however its free decision whether it would like to make this requirement valid. The payment transformation leads to the fact that the employee does without content and receives in response from the employer a worth-same supplying promise.
The execution of the company pension scheme can be made in Germany only by the following execution ways, which the legislator everything out-arranged:
The execution ways relief fund, pension fund, pension fund and direct insurance are called also indirect execution ways, since execution takes place with a legally independent enterprise.
For the conclusion of company pension scheme and the selection of the execution way also the social responsibility and connection to the enterprise are decision relevant apart from fiscal and according to commercial law (e.g. German and international accounting regulations) aspects. In addition come characteristics pertaining to labour law, aspects of cost, personnel-political objectives and further. In contrast to the conclusion of a private age precaution the employer acts its coworker with the operational age precaution as a trustee for third, and must its interests in the eye keep. In particular during the payment transformation it must make certain that also a worth-same achievement promise faces the converted payment.
If an employee before entrance of the supplying case (reach the age limit, death or disablement) from the enterprise separates, a claim remains to it, if the legal Unverfallbarkeitsfristen is fulfilled. Since 2001 the following periods apply: During payment transformation the legal Unverfallbarkeitsfristen is immediately fulfilled ("§ 1b exp. 5 BetrAVG), during employer-financed company pension scheme (see "§"§ 1b, BetrAVG), if the employee with withdrawal 30. Lebensjahr completed and the promise at least 5 years existed. To employee and applies for employer-financed promises, which were given 2001 ago, ("§ 30f BetrAVG): Old 35/Zusagedauer 10 years or age 35/Zusagedauer 3 years/seniority 12 years. In addition, upon expiration 31 December 2005 is legally unverfallbar promises, which were given 2001 ago, if they existed five years (see "§ 30f BetrAVG) and the employees 30. Lebensjahr completed. The height of the legally unverfallbaren claim is calculated proportionately or by the fortune formed from the contributions (covering capital, "§ 2 BetrAVG). Independently of the legal Unverfallbarkeitsfristen an earlier contractual Unverfallbarkeit can be agreed upon between employers and employees.
Legally unverfallbare claims and current achievements of employees are insolvency-protected with in the execution ways direct supplying promise (=Direktzusage), certain direct insurance promises, and pension fund promises by the pension safeguard association.
Depending on, who pays the contributions, one speaks financed supplying of employer or employees. Combinations are usual. However each company pension scheme does not have to be out-financed, in particular with direct promises and in practice also often occurs this.
Nowadays the financing most frequently which can be found is the payment transformation. Here the employee does without a part of its income in favor of a company pension scheme. Each employee has requirement on payment transformation ("§ 1a BetrAVG). Since the payment transformation brings fiscal advantages for employers and employees, this variant for middle and higher incomes is normally very favourable.
If the company pension scheme is made by a relief fund, then allowances of the employer can be received to the relief fund up to a border profit-mitigating into the balance ("§ 4d EStG).
A similar procedure comes with direct promises to carrying. The pension promises can be received with their fractional value ("§ 6a EStG) into the balance and moderate the profit. However that is at present very high interest rate of 6%, here which can be used, so that this procedure enjoys of no large popularity at present at the employers.
All indirect execution ways finance themselves from the contributions (of the employer or employee). However either the so-called capital covering procedure or the allocation procedure can be used. With principal plans the contributions and their yields are clearly assigned to an achievement candidate, while with the allocation procedure the contributions and yields for the need covering of all achievement candidates one uses. Lately increasingly a conversion to principal plans takes place, since with reallocation-financed plans by a change of the relationship from recipients of services to contribution payers the load of the carriers rises.
Different paragraphs of the income tax law serve to make the operational age precaution attractive for employee and employers. See for this
A political goal is also for the operational age precaution the transition for stored taxation, dh. Contributions can be deposited taxfree, but the achievements in full height must be paid duty.
From view of the operational age precaution thereby Riester pensions are problematic. The contributions remain up to a certain height freely by income tax, social insurance contributions continue to result on the contributions however. Since also the achievements from a Riester pension are income tax and social security contribution requiring, the principle of the avoidance of double taxation is here hurt. Thus a Riester pension loses in the context of the operational age precaution in relation to private promoted age precaution contracts at attractiveness. With private age precaution contracts the social security contribution obligation is void.
Financial advantages for the enterprise, which offers an operational age precaution, are the social insurance contributions including the contributions to the professional association, which are saved for the converted contributions. A not quantifiable advantage is the reputation, which wins an enterprise with a good company pension scheme. Covering resetting for the achievements from the operational age precaution are put on only rarely in Germany however in the own enterprise. They are usually transferred at insurance, since the guaranteed minimum interest charges are not to be gained with the today's Zinsniveau always.
We found here 6 articles.
C» Charge time» Company pension scheme » Compulsory contribution time » Connected German old age pension insurance » Consideration time » Course insurance office |
We found here 5 related websites.
Index | Privacy | Terms Of Use | Sitemap | Feedback
Printer Friendly Format
Bookmark this page
Back to "Old age pension insurance"
Back to top