Occupational pension scheme
Under the Betriebsrentengesetz (German Occupational Pensions Act), employees are entitled to convert part of their remuneration into an occupational pension scheme. If the employer saves social security contributions in the process, they must, in accordance with the statutory requirements, generally subsidise the salary conversion with a contribution of 15 per cent.
The law provides for five implementation methods: direct commitment, support fund, direct insurance, Pensionskasse (pension fund institution) and Pensionsfonds (pension fund). Which method is suitable depends on the size of the company, the desired administration and the aim of the provision. We explain the differences and arrange the appropriate insurance-based solution.
Employer-sponsored health insurance
With employer-sponsored health insurance, the employer takes out additional benefits for their employees, for example for dental treatment, preventive check-ups, visual aids or hospital stays. It is often possible to take out the policy without an individual health assessment, which is a noticeable advantage for employees with pre-existing conditions.
For employers, employer-sponsored health insurance is a visible sign of care and an argument when recruiting skilled workers.
Introduction and support
Occupational provision entails information and documentation obligations for employers. We help in drawing up comprehensible pension rules, inform your employees and accompany employees joining and leaving. Questions of employment law and tax structuring are clarified in coordination with your lawyers and tax advisers.
Benefits for employers and employees
For employees, occupational provision means additional protection which they would often not obtain privately, or only on worse terms. For employers, it is an instrument of staff retention that makes a tangible difference in discussions with applicants.
For this benefit to be appreciated, the offer must be explained clearly. We therefore present the benefits in employee information materials and, on request, in personal meetings.
Frequently asked questions
As an employer, do I have to offer an occupational pension scheme?
Employees are entitled to salary conversion. The employer must provide a means of doing so; if they do not offer one, the employee can demand direct insurance.
What happens to the occupational pension when changing employer?
An entitlement financed through salary conversion remains with the employee. Depending on the implementation method, it can be continued with the new employer, transferred or made contribution-free.
How is employer-sponsored health insurance treated for tax purposes?
That depends on how it is structured. We clarify this question together with your tax adviser before the policy is introduced.
Is occupational provision also suitable for small companies?
Yes. For smaller businesses in particular, there are insurance-based solutions with manageable administrative effort, such as direct insurance or group tariffs in employer-sponsored health insurance.