Occupational pension scheme

Die company pension scheme (bAV) Is a Supplementary pension, which the employer offers to supplement the statutory pension and close pension gaps in old age.

In doing so, the employee pays part of his gross salary into a form of pension such as direct insurance, pension fund or pension fund, often with a subsidy from the employer. The contributions are exempt from tax and social security contributions, which protects the net salary.

There is five Means of implementation of bAV: Direct insurance, pension fund, pension fund, support fund and direct commitment, which differ in flexibility and tax treatment.

Since 2002 Employees have the right to pay conversion, and since 2018, employers must contribute at least 15% of the converted salary to new contracts if social security contributions are saved. In addition to tax benefits during the savings phase, bAV also offers more favourable taxation at retirement age and can be designed as a lifetime pension or one-off lump sum payment. It is an attractive way to optimize retirement provision, as it is supported by the state and often supported by the employer.

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