Occupational pension scheme
Your BVV pension plan combines tax advantages with our excellent tariffs.
Pension system in Germany
Different to other countries
Germany's old-age pension system consists of three pillars. As the statutory part has been decreasing in the last years, occupational coverage today plays an important role and is sponsored by the government.
The standard retirement age in Germany is 67. However, an earlier or later start of retirement is possible.
How does it work?
In the finance sector, occupational pension plans are often salary-linked and jointly financed by the employer and employee. Depending on the rules agreed upon by BVV and your employer, in most cases you will automatically be registered at BVV by your employer. An annual pension statement will give you an overview of your benefits.
The government offers tax benefits: Contributions are generally paid from the gross income by deferred compensation, and are largely exempt from income tax and social insurance contributions for the employee.
Pensions are paid out worldwide and will be taxed during the retirement phase.
Example of deferred compensation
|Gross income||3,500 euros||3,500 euros|
|– amount paid to pension plan||– 0 euros||– 200 euros|
|= New gross income||= 3,500 euros||= 3,300 euros|
|– income tax||– 588 euros||– 530 euros|
|– social insurance levy||– 719 euros||– 677 euros|
|= Net income||= 2,193 euros||= 2,093 euros|
|(Figures are estimated)|
|>> If you pay 200 euros into your pension plan, you only invest approximately 100 euros from your net income.|
- Excellent performance ratio
- No provisions or acquisition fees
- Tax benefits
- Pensions are paid worldwide
Larger than you think
Measured by its capital investment volume, BVV is Germany's largest pension institution.
|Number of member companies||767|
|Number of insured persons and pensioners||466,000|
|Investment volume||28.1 billion euros|
|Net return on investment||4.3%|
|Administration expense ratio||1.3%|
|Staff||Approx. 220 employees|
BVV pension plan
In addition to the statutory pension insurance, your employer will offer you an occupational pension scheme by BVV. Details such as the chosen tariff and the amount of the contribution depend on the employer's agreement with BVV.
Basic pension coverage with employer's contribution
The employer will pay a wage-based monthly contribution to BVV. You as the employee may participate in the payment by way of deferred compensation. Each contribution will be credited to your personal BVV pension account.
BVV compact cover includes:
- Lifelong retirement pension
- Protection in the event of disability
- Surviving dependants' pension
You can increase your retirement pension individually, profiting from tax benefits and our excellent tariffs. Again, the tariffs offered by your employer may differ from the BVV product range displayed. The deferred compensation scheme is financed by you as the employee only.
Additional contribution from net income
There are even more options to increase your BVV pension. You can pay contributions without involving your employer. That is possible if you already have a BVV pension account.
When leaving the company
When leaving the company, you have the opportunity to increase your entitlement to benefits with your new employer (if they are located in Germany) or from your net income.
Your way to BVV
- Be advised individually.
- Sign agreement with your employer.
- Employer signs you up at BVV.
- Receive an insurance cetificate.
- Be a member of BVV.