Pensions

Pension payments are a term used in German service and tax law .

Service law

Civil servants (except honorary officers ), soldiers and professional judges are entitled to pension payments after they retire . In the active civil service relationship , they receive remuneration or salary as well as, if applicable, capital-forming benefits . For federal civil servants and judges in the federal service, the pension payments are regulated in the Civil Service Providers Act (BeamtVG), for state civil servants and judges in the corresponding state laws. The pension payments for professional soldiers and the service provision for temporary soldiers in the Bundeswehr is regulated in the Soldiers Supply Act ( SVG ). According to § 2 BeamtVG, pension payments are:

1. Pension or alimony,
2. Survivor's pension,
3. Payments in case of missing,
4. Accident insurance,
5. Transitional allowance,
6. Compensation for special age limits,
7. Increase amount according to § 14 Paragraph 4 Sentence 3 Clause 1 BeamtVG,
8. Difference according to § 50 Paragraph 1 Clause 2 and 3 BeamtVG,
9. Services according to Sections 50a to 50e BeamtVG,
10. Compensation amount in accordance with Section 50 (3) BeamtVG,
11. Adjustment surcharge according to § 69b sentence 5 BeamtVG,
12. One-time payment according to Section 11 BeamtVG.

Tax law

Pension payments under German tax law are in accordance with Section 19 (2 ) EStG

• the retirement pension, widow's benefit or orphan's benefit , the maintenance contribution or a similar payment

1. on the basis of civil service law or corresponding statutory provisions,
2. According to the civil service principles of corporations , institutions or foundations under public law or public law associations of corporations

or

• in other cases, earnings and benefits from previous services due to reaching an age limit, reduced earning capacity or as a survivor's benefit; Payments due to reaching an age limit are only considered as pension payments if the taxpayer has reached the age of 63 or, if he is severely disabled, he has reached the age of 60.

Pension payments are part of the income from employment and are generally subject to tax and social security contributions. Health insurance contributions must also be paid from pension payments, regardless of the compulsory insurance in the health insurance of pensioners ( Section 229 SGB ​​V). This must be borne by the recipient of the pension alone ( Section 250 SGB ​​V). However, the pension allowance remains tax-free. Note also the related expenses lump sum of § 9 sentence 1 no. 1b Income Tax Act.