Company pension: your right to salary conversion
Save for retirement while saving on taxes and social security contributions? Occupational pensions via salary conversion make this possible. You have a legal right to it, and the employer even has to contribute.
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What you should do now
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1. Assert your entitlement
Ask the employer for salary conversion; you have a right to it (§ 1a BetrAVG).
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2. Clarify the pension vehicle
Direct insurance, pension fund or similar; the employer chooses the vehicle.
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3. Check the contribution
Look out for the employer contribution (usually 15 %) to the extent social security contributions are saved.
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4. Think long term
In your overall calculation, keep in mind the later taxation and contribution liability during the pension phase.
Frequently asked questions
Am I entitled to a company pension?
To an occupational pension through salary conversion, yes: under § 1a BetrAVG every employee can demand to convert part of their gross pay into a company pension. During the saving phase the contributions are free of tax and social security contributions up to certain limits. The employer determines the pension vehicle (for example direct insurance).
Does the employer have to contribute anything?
Yes, as a rule. If the employer saves on social security contributions through the salary conversion, they must pass on a contribution of usually 15 % of the converted amount. Keep in mind, however, that the company pension can be taxed during the payout phase and, depending on the situation, be subject to contributions.
Take action now
We put together the ready-made texts and the right places to contact for you.
General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.