Earnings points

Earnings points are the central unit of value in the statutory pension insurance (cf. Section 63 (1) to (3) SGB VI ) in Germany. Since January 1, 1992, they have replaced the previously used units of value from the regulations of the Reich Insurance Code and the Employee Insurance Act. For the new federal states (the accession area) the transitional provisions of § 256a SGB VI apply .

The earnings points represent the following findings:

The income-related relationship of the pension: The number of earnings points earned in a calendar year corresponds to the ratio between one's own personal income and the average income of all insured persons in the same calendar year.
They make the contribution payments of different calendar years comparable: for the pension entitlement the relative income position or the relative contribution payment over the working life is decisive and not the year in which a contribution was paid.
They enable wage- dynamic pensions: The earnings points, together with the current pension value, are the heart of the dynamic pension insurance, which is based on wage development.

A distinction must be made between the personal earnings points in accordance with Section 66 SGB VI. They result from multiplying the number of earnings points of an insured person by the access factor (cf. § 77 SGB VI).

Income relatedness

principle

According to Section 63 (2) SGB VI, there is exactly one earnings point if contributions are paid on the average income in accordance with Appendix 1 SGB VI in a calendar year . If contributions are paid on half the average income, this results in half an earnings point, and in the case of double income accordingly two. However, the maximum income that can be insured (contributed) is the contribution assessment ceiling ( Annex 2 SGB VI). The maximum possible number of earnings points that an insured person can earn per calendar year results from the ratio of the income threshold to the average income .

Special regulation for the new federal states

In the new federal states, the basic principle is only applied to values determined there according to the same principle. However, the individual income on which contributions are paid is multiplied by the conversion factor for the New Länder (colloquially often called high valuation) of the respective year in accordance with Annex 10 of SGB VI and then set in relation to the average salary in accordance with Annex 1 of SGB VI. The earnings points acquired in this way are called “ Entgeltpunkte (East)” according to Section 254d SGB VI. With the same nominal wage, this results in more earnings points than in the West, which in turn are still different so far (2017). This special calculation is intended to compensate for the still existing wage differences for the same work between East and West Germany.

example

The example calculation refers to the year 2011.

The average income according to Annex 1 SGB VI was 32,100 euros.
The evaluation factor according to Annex 10 SGB VI was 1.1740.
The income threshold (west) was 66,000 euros, the income threshold (east) was 57,600 euros.

The formula for the calculation: ${\ displaystyle {\ frac {\ text {Own contributory income}} {\ text {Average salary according to Appendix 1}}} = {\ text {Pay points}}}$

Insured annual income	West: earnings points	East: Pay points (East)
27,342 euros (2,278.50 euros per month) average income (east)	${\ displaystyle {\ frac {27,342} {32,100}} = 0 {,} 8518}$	${\ displaystyle {\ frac {1 {,} 1740 \ cdot 27,342} {32,100}} = 1 {,} 0000}$
32,100 euros (2,675 euros per month) average income (west)	${\ displaystyle {\ frac {32.100} {32.100}} = 1 {,} 0000}$	${\ displaystyle {\ frac {1 {,} 1740 \ cdot 32,100} {32,100}} = 1 {,} 1740}$
57,600 euros (4,800 euros per month) income threshold (east)	${\ displaystyle {\ frac {57,600} {32,100}} = 1 {,} 7944}$	${\ displaystyle {\ frac {1 {,} 1740 \ cdot 57,600} {32,100}} = 2 {,} 1066}$
66,000 euros (5,500 euros per month) income threshold (West)	${\ displaystyle {\ frac {66,000} {32,100}} = 2 {,} 0561}$	${\ displaystyle {\ frac {1 {,} 1740 \ cdot 57,600} {32,100}} = 2 {,} 1066}$ ^BBG
72,000 euros (6,000 euros per month) income threshold (West)	${\ displaystyle {\ frac {66,000} {32,100}} = 2 {,} 0561}$ ^BBG	${\ displaystyle {\ frac {1 {,} 1740 \ cdot 57,600} {32,100}} = 2 {,} 1066}$ ^BBG

^BBG The assessment ceiling applies to this income (creditable income reached).

The assessment ceiling (east and west) limits the insurable income. Contributions are only to be paid up to income up to the contribution assessment ceiling, income above is free of charge. An insured person cannot earn more earnings points per calendar year than corresponds to a contribution to the income threshold.

Contribution payment in different calendar years

The number of earnings points is calculated separately for each calendar year. The relative insured income position of the respective year is therefore decisive. The same relative income leads to the same pension entitlement in every calendar year.

Value and performance of a remuneration point

According to the pension formula , which describes the wage dynamic pension, the own old-age pension results from the earned earnings points at the beginning of the retirement, relevant for the pension payment (gross) is the current point value; this and with it the pension will be adjusted annually according to the pension adjustment formula . As a result, pensions generally develop in line with wages. It can, such as. B. 2004 to 2006 and 2010, also give "clear rounds" without an increase. Theoretically, based on the set of rules of the pension adjustment formula - regardless of whether it is politically enforceable - it cannot be ruled out that pensions may also fall if wages fall.
The earnings points ensure that the individual average working life relative earnings position is reflected in the pension amount and adapts annually to the wage development.

Personal earnings points

How and for what times the personal earnings points arise is regulated in Sections 70 to 78 of SGB VI. In addition, there are separate regulations for a large number of issues, such as for miners' times in Sections 81 to 87 and transitional regulations in Sections 256 to 259b SGB VI.

Sum of earnings points

The total of all earnings points can change, except due to the relevant contribution times, through other factors if additional times related to pension law and other times are included in the total. The sum of the earnings points thus obtained from credit units for contribution periods and non-contributory periods and surcharges for contribution-reduced periods , supplying or deductions from a pension rights adjustment or pension splitting or early or also pushed claiming the retirement pension. Also relevant are severance payments for company pension entitlements , surcharges from mini jobs and surcharges on earnings points from contributions after the start of the retirement pension.