Make your employee pension entitlements secure and flexible
The German Pensionskasse is a legally independent form of pension fund regulated by the German Insurance Supervisory Authority that gives your employees legal entitlements to future benefits that are generally paid for life. Alternatively, there is the option to take a lump sum at the time of retirement.
Contributions to a Pensionskasse for a pension scheme formed after 1 January 2005 remain tax-exempt up to a limit of 4% of the income threshold for government retirement pension contributions plus a fixed allowance of EUR 1,800 per year. This fixed allowance cannot be used if a claim under § 40b of the German Income Tax Act (EStG) is made at the same time. This additional fixed allowance is tax-exempt, but not exempt from social security contributions.
Your benefits at a glance:
- Meets your employees’ entitlement to convert their earnings in law
- Administrative costs are low, easy to implement, no additional costs
- Contributions are tax-deductible as operating costs
- Saves social security contributions
- No obligations if staff leave: employees’ pension entitlements are transferable (portability)
- No insolvency protection costs
- Balance sheet-neutral
The Savings Bank Pensionskasse offers your employees a range of products. Individual contributions depend on the chosen investment form:
PensionsRente Sicherheit (security)
Invests in traditional pension insurance. Any surpluses made are reinvested in the pension insurance. This product is suitable for employees whose main concern is security.
Contributions are also invested in traditional pension insurance. Surpluses are invested in Deka Investment funds: employees can choose their preferred equity ratio (35 per cent, 55 per cent, 75 per cent or 100 per cent). This combination product is suitable for employees who wish to combine their security-oriented pension scheme with the opportunity of attractive earnings.
The contributions not required to finance the guarantee on the accrued contributions are invested in Deka Investment funds. Your employees can determine the equity ratio themselves: 35 per cent, 55 per cent, 75 per cent or 100 per cent. This product is of interest for employees who want the security of guaranteed contributions and who want to take advantage of opportunities in the international capital markets.
Your employees’ benefits at a glance:
- Individual product choice depending on opportunity and risk preferences
- Lifelong guaranteed pension that increases through surpluses
- Choice of pension payments or annuity
- Flexible contribution payments to suit individual circumstances
- Extra modules available on request to provide security for surviving dependants and for invalidity
Sparkassen Pensionskasse AG
Tel: +49 221 98 544 - 0
Fax: +49 221 98 544 - 599