Vesting
Vesting is a term from the law of company pension schemes . A non-forfeitable entitlement to pension benefits is at least partially maintained upon termination of the employment relationship . The non-forfeitability underlines the remuneration nature of the company pension scheme: Since the company pension scheme is part of the remuneration for work already performed, it can no longer be completely withdrawn from the employee if certain conditions are met.
Statutory vesting
Non-forfeitability according to the reason
The principle of non-forfeitability is regulated in § 1b and § 30f BetrAVG. The requirements are based on the date on which the pension commitment was first issued.
| Date of acceptance | Requirements for vesting |
|---|---|
| from January 1, 2018 | Minimum age 21 years and 3 years commitment period |
| from January 1, 2009 to December 31, 2017 |
Minimum age 25 years and 5 years commitment period or minimum age 21 years and 3 years commitment period from January 1, 2018 |
| from January 1, 2001 to December 31, 2008 |
Minimum age 30 years and 5 years commitment period or minimum age 25 years and 5 years commitment period from January 1, 2009 |
| until December 31, 2000 | Minimum age 35 years and 10 years commitment period or minimum age 35 years and 3 years commitment period and 12 years service or minimum age 30 years and 5 years commitment period from January 1, 2001 |
Commitments for deferred compensation issued on or after January 1, 2001 are immediately vested regardless of these deadlines.
With the company pension law to strengthen the possibility of a pure defined contribution in the implementing Because pension fund, pension funds and direct insurance was introduced on January 1, 2018th The resulting entitlements are also immediately vested.
Vesting according to the amount
The amount of the statutory vested claims depends on which of the five methods direct commitment , provident fund , pension fund , pension fund or direct insurance is used.
In the case of implementation as a direct commitment or through a support fund, the vested entitlement is obtained by multiplying the entitlement by the quotient of the length of service actually completed ( numerator ) and the length of service that can still be achieved up to the fixed age limit ( denominator ), the so-called non-forfeitability quotient (m / n-tel procedure, pro-rata procedure).
In contrast to this, the non-forfeitable entitlement for defined contribution pension commitments results from the contributions made up to the point of departure.
In the case of the insurance-like implementation channels, the so-called insurance-contractual form of non-forfeiture can be chosen under certain conditions. Then the non-forfeitable entitlement results from the contributions paid so far. After leaving the company, the employee can decide whether to make his pension contribution-free or to continue with his own (privately used) contributions ( Section 2 BetrAVG).
In the case of a salary conversion commitment, the vested entitlement results from the remuneration converted up to the point of departure ( Section 2a (5a) BetrAVG). Only for commitments made before January 1, 2001 does the m / n-tel procedure or the insurance-contractual form of non-forfeiture apply ( Section 30g (1) BetrAVG).
Even with the pure contribution commitment, the non-forfeitable entitlement results from the contributions paid up to the point of departure.
Insolvency insurance
A legally non-forfeitable entitlement, as well as an ongoing benefit before the employer's insolvency, is covered by the Pensions -icherung -Verein (PSVaG). This only does not apply if the implementation is carried out through a pension fund or - under certain conditions - through direct insurance ( Section 7 (2) BetrAVG).
Pure contribution commitments are not subject to statutory insolvency insurance. Instead, the employee affected by the insolvency is given a right to enter the pension scheme (take over and continue paying contributions).
Contractual vesting
A worse position compared to the statutory provisions on non-forfeitability is subject to collective bargaining agreement ( Section 17 (3) BetrAVG). On the other hand, a lower price is possible at any time. The improvement compared to the legal regulation can be made both in terms of reason, by shortening the deadlines, and in terms of amount, by improving the non-forfeitability quotient. However, such improvements have no effect on the Pension Security Association and are therefore not protected against insolvency. However, other insolvency insurance can be contractually secured. This is done for example by pledging of reinsurance policies for pension and provident funds. This approach is recommended for people who are not covered by the regulations of the Company Pension Act ( Section 17 (1) Sentence 3 BetrAVG), such as controlling shareholders-managing directors of corporations who are in the hybrid position of an employee and an entrepreneur at the same time.
