Supplementary Pension Scheme for the Public Service
Zusatzversorgung des öffentlichen Dienstes
Coverage
Mandatory participation
- The federal government as employer is statutorily obliged to conclude an occupational pension plan for civil servants and Vertragsbedienstete born after 31/12/1954.
Financing
General finances
- Fully funded schemes financed by contribution payments and capital revenues.
Contribution rates
- The federal government has committed itself by collective agreement to a contribution of 0.75% of the assessment basis (= earnings of the employees without contribution assessment basis).
- Voluntary participation of employees up to the level of contributions of the federal government (or up to EUR 1,000/year).
State support & incentivising strategies
- Tax refunds and exemptions from social security contributions granted for contributions to occupational pension plans.
Administration
- Administered by the ‘Federal Pension Institution’ (Bundespensionskasse).
Qualifying Conditions
- Civil servants: retirement age depending on statutory retirement age (see civil servants’ pension scheme).
- Civil servants who have left the civil service before retirement and Vertragsbedienstete: minimum retirement age of 55 (except in case of invalidity).
- Minimum service period of one year (Wartefrist).
Benefits
Pension payments
- Monthly life-long annuity (or one-time lump sum payment under certain conditions).
- ‘Defined contribution’ (DC) with a guarantee of a minimum investment return.
Taxation and social security contributions
- Pensions from employer contributions are subject to wage tax; those parts that were financed by the employee are tax-privileged or even tax-free.
- Pension payments are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory participation
- The federal government as employer is statutorily obliged to conclude an occupational pension plan for civil servants and Vertragsbedienstete born after 31/12/1954.
General finances
- Fully funded schemes financed by contribution payments and capital revenues.
Contribution rates
- The federal government has committed itself by collective agreement to a contribution of 0.75% of the assessment basis (= earnings of the employees without contribution assessment basis).
- Voluntary participation of employees up to the level of contributions of the federal government (or up to EUR 1,000/year).
State support & incentivising strategies
- Tax refunds and exemptions from social security contributions granted for contributions to occupational pension plans.
- Administered by the ‘Federal Pension Institution’ (Bundespensionskasse).
- Civil servants: retirement age depending on statutory retirement age (see civil servants’ pension scheme).
- Civil servants who have left the civil service before retirement and Vertragsbedienstete: minimum retirement age of 55 (except in case of invalidity).
- Minimum service period of one year (Wartefrist).
Pension payments
- Monthly life-long annuity (or one-time lump sum payment under certain conditions).
- ‘Defined contribution’ (DC) with a guarantee of a minimum investment return.
Taxation and social security contributions
- Pensions from employer contributions are subject to wage tax; those parts that were financed by the employee are tax-privileged or even tax-free.
- Pension payments are not subject to social security contributions.
Legal Basis: Company Pensions Act (Betriebspensionsgesetz); Pension Funds Act (Pensionskassengesetz); Salaries Act (Gehaltsgesetz 1965); Contract Staff Act (Vertragsbedienstetengesetz 1948); Collective Bargaining Agreement about Pension Fund Commitments for Civil Servants (Kollektivvertrag über die Pensionskassenzusage für Bundesbedienstete); Income Tax Act (Einkommensteuergesetz 1988).