Company Pension Strengthening Act
| Basic data | |
|---|---|
| Title: | Law to strengthen company pension schemes and to amend other laws |
| Short title: | Company Pension Strengthening Act |
| Type: | Federal law |
| Scope: | Federal Republic of Germany |
| Legal matter: | Social law , labor law , private law , collective bargaining law , tax law |
| Issued on: | August 17, 2017 ( Federal Law Gazette I p. 3214 ) |
| Entry into force on: | predominantly 1st January 2018 |
| GESTA : | G038 |
| Weblink: | Text of the law |
| Please note the note on the applicable legal version. | |
The company pension Support Act is a German tax and social law reform package of the year 2017. The legislator thus aims for a better dissemination of occupational pensions . The new regulations apply from January 1, 2018.
The Company Pension Strengthening Act pursues a far-reaching reform of company pension schemes. Strengthening them has primarily been the responsibility of the collective bargaining parties (“social partner model”). To achieve a higher level of care that will social partners through collective agreements make adequate occupational pension schemes and thereby create greater acceptance among workers. On a tariff basis, it creates the possibility of introducing “pure contribution commitments” and so-called “ option systems ”.
Since the legislature hopes for a higher degree of penetration of the company pension scheme outside of the social partner model, especially among small and medium-sized companies and low-wage earners , the focus of the package to improve the tax and social insurance framework conditions for company pension schemes is to increase the deductible leeway and the arrangement of Employer subsidies . These will become acute - differentiated between new and existing contracts - in 2019 and 2022.
activities
Tax and social security framework
Basic security allowance
The basic starting point is the introduction of an allowance in the basic security . This restricts the fact that the company pension is offset against the state basic security. This affects pension payments that are based on the so-called “subsidized pension scheme” ( company , Rürup and Riester pensions ). The tax exemption consists of two components: initially, a basic tax exemption of EUR 100 is granted; 30% of the company pension in excess of the basic allowance is based on this. The latter, however, is capped at 50% of standard requirement level 1 according to SGB XII , so that an exemption of a maximum of EUR 212 (as of 2019) is not exceeded.
Example: The monthly income from additional retirement provision is € 300.00. Of this, € 100.00 is free of charge. Of the remaining € 200.00 (30% × € 200.00) € 60.00 are free of charge.
Extension of the tax allocation limit from 4% to 8% of the BBG
The tax-free allocation framework for contributions in accordance with Section 3 No. 63 EStG will be expanded from 4% to 8% of the contribution assessment ceiling (west) of the pension insurance. In return, the previous tax-free increase of 1,800 euros will no longer apply. Contributions in favor of a flat-rate taxation according to § 40b EStG are deducted from the 8% of the BBG.
According to social security law, the maximum quota remains at 4% of the assessment ceiling. This is based on the employer's contributions to statutory health, long-term care, pension and unemployment insurance, the employer's contribution to pension insurance for professional institutions and voluntary or private health and long-term care insurance, flat-rate contributions to social insurance for marginally employed people, but not employer contributions to statutory accident insurance. Insolvency payments are also not taken into account. Caution is advised if the conversion of the salary plus the granting of the payment of the employer's allowance leads to the exemption from social insurance being exceeded, because social insurance contributions are then to be paid for the excess. However, this only affects the salary conversion and not the statutory minimum amount of the employer subsidy, which is why it may be advisable to mutually coordinate the deferred compensation and the BRSG subsidy so that the social security exemption limit (4% of the BBG) is not exceeded (source : Heubeck ).
Elimination of double contributions for company Riester contracts
There is, however, a better position under social security law in the case of the Riester-funded company pension scheme, insofar as the double contribution falls. As with privately concluded Riester contracts, the social security contributions are paid during the savings phase; the obligation to pay KVdR / PVdR contributions no longer applies in the retirement phase. In addition, the basic allowance will be increased from EUR 154 to EUR 175 ( Section 84 sentence 1 EStG). No substantive changes will be made to the current rules for child allowances.
Promotion of the low wage sector
The subsidy amount for the low-wage sector is new: employer-financed pension commitments to employees with a gross monthly salary of up to EUR 2,200 are to be subsidized ( Section 100 EStG). If the employer sets up an annual contribution of at least EUR 240 for the employee concerned as part of an undeveloped contract, he should benefit from state subsidies amounting to 30% of the contribution made. The special funding is limited by twice the annual contribution (maximum limit: 480 EUR).
Subsidy from the employer for deferred compensation
If the employee converts part of his agreed remuneration into direct insurance , a pension fund or pension fund , the employer must add an employer contribution of 15% of the converted remuneration, provided that the salary conversion results in social insurance savings within the meaning of Art. 1 § 1a Paragraph 1a Company Pension Strengthening Act and Section 23 of the Company Pension Act (BetrAVG). This obligation applies immediately for deferred compensation agreed from January 1, 2019 in accordance with Art. 17 Paragraph 5 of the Company Pension Strengthening Act; for older employees, in accordance with Art. 1 No. 12 of the Company Pension Strengthening Act, in accordance with Art .
Social partner model
Pure contribution commitment ("pay and forget")
In future, the social partners (social partners), one in Betriebsrentengesetz not previously regulated labor Zusageart agree to the so-called "pure defined contribution". Model: The employer promises his employee, on the basis of a collective agreement or based on the same (according to Section 24 BetrAVG), to pay a contribution in one of the implementation channels of Section 3 No. 63 EStG. He brings the contribution into a direct insurance, pension fund or pension fund. The employer's obligation to pay for benefits, defined contribution commitments and contribution commitments with minimum benefits in accordance with Section 1 Paragraph 1 Clause 3 BetrAVG expressly does not apply to pure contribution commitments in accordance with the new Section 1 Paragraph 2 No. 2a BetrAVG. The employer is not liable for the pension benefits generated from the contribution (there is no right to choose capital payments), nor for their adjustment in accordance with Section 16 BetrAVG.
Furthermore, there is no insolvency insurance . Instead, the employee affected by the insolvency is given the right to access the pension (assumption and continuation of the contribution payment).
Obligation to contract is not, however, the entitlements based on the premiums paid are old-age pension in accordance with § 22 para. 2 sentence 1 BetrAVG immediately vested , what deferred compensation applies and employers alike financing, but not with regard to employer-funded disability or survivor's pension rights.
The social partners (parties to the collective bargaining agreement) must control the implementation of the “pure contribution commitment”, but at least act on them with suitable measures and secure them through security contributions ( Section 23 (1) BetrAVG). The effect can be guaranteed, for example, by being represented on the supervisory board of the pension institution. Various supervisory provisions must be observed, primarily Sections 244a to 244d VAG. Section 244b (1) no. 1 VAG regulates that pure contribution commitments may not contain guaranteed benefits (“guarantee prohibition”).
Opting out / automatic salary conversion
In the context of option models, a certain part of the employee's gross salary is automatically withheld by the employer to finance a company pension. In return, however, the employee receives a right of objection ("opting out") within a certain period of time. The Company Pension Strengthening Act provides for this in future in Section 20 (2) BetrAVG.
Opting out models are to be regulated in a collective bargaining agreement or in a company or service agreement based on a collective agreement . Employers who are not bound by collective bargaining agreements are granted the right to apply a relevant collective bargaining option system or to introduce it on the basis of a relevant collective bargaining agreement through a company or service agreement.
literature
- Sebastian W. Droßel: The new company pension law: Company pension strengthening law and implementation of the mobility guidelines . Nomos, Baden-Baden 2018, ISBN 978-3-8487-3839-7 .
- Daniela Karbe-Geßler: The Company Pension Strengthening Act: The new design options explained in a practical way . Rehm, Heidelberg 2018, ISBN 978-3-8073-2657-3 .
- Larissa Schobert: The pure contribution commitment: considerations for strengthening the employer-financed company pension scheme . Dissertation at the same time. Duncker & Humblot, Berlin 2017, ISBN 978-3-428-55275-7 .
Web links
- Process flow and documents in the DIP for the Company Pension Strengthening Act
- Changes due to the Company Pension Strengthening Act
- Christian Rolfs: Law to strengthen company pensions passed
- Federal Council resolution minutes
- Introduction of the pure contribution commitment in the company pension scheme
