Occupational pension buy-back value: Options, costs, and smart alternatives for your company pension
18 May 2025
Katrin Straub
Managing Director at nextsure
Are you considering the surrender value of your occupational pension? Cancellation is often associated with significant losses and is rarely possible. Find out here what pitfalls lie ahead and what better options you have.
The topic in brief and concise terms
The surrender value of an occupational pension is often only a fraction (20-30%) of the contributions paid, due to high costs and tax repayments.
A termination of the occupational pension scheme is only possible in exceptional cases, such as a small vested entitlement (under approximately 37 euros monthly pension) or with the employer's consent.
Alternatives to termination, such as contribution suspension or contract transfer when changing jobs, are usually the financially better options.
Surrender Value of Occupational Pension: What You Need to Know
The surrender value of an occupational pension scheme (bAV) refers to the amount that would be paid out in the event of premature termination of the contract. This value corresponds to the accumulated contributions including interest and profits, minus all administrative and acquisition costs as well as any potential tax repayments. Cancellation of the bAV is heavily restricted by law, as it contradicts the purpose of retirement provision. In most cases, redemption is associated with significant financial losses. The importance of the bAV as a long-term provision becomes clear here. Therefore, the decision to redeem should never be taken lightly.
Significant Losses Loom: The Reality of the Surrender Value
The payout of the full contract balance is an illusion when repurchasing an occupational pension scheme (bAV). Often, the buyback value includes only twenty to thirty percent of the paid contributions. This means a potential loss of seventy to eighty percent of your retirement savings. Furthermore, cancelling the plan means no additional retirement benefits will be accumulated. The saved taxes and social contributions during the accumulation phase become immediately due upon cancellation. It can even happen that these repayments, along with administrative costs, exceed the accumulated sum. Therefore, a careful examination of whether an occupational pension scheme is sensible is essential.
Termination of the occupational pension scheme: Only possible in exceptional cases
A regular termination of the occupational pension scheme by the employee is generally excluded. The legislator wants to ensure that the accumulated capital is actually used for retirement provision. However, there are a few exceptional situations where a dissolution might be conceivable:
Minimum benefit: If the expected monthly pension is below a certain low-income threshold (e.g., €37.45 in the year 2025), the contract can be terminated without the employer's consent.
Employer's consent: In an existing employment relationship, the employer may agree to a termination, but is not obliged to do so.
Termination of employment: Under certain circumstances, after leaving the company, a settlement can be negotiated based on the surrender value.
Even if termination is possible, the financial disadvantage often outweighs the short-term benefit. The option to take the occupational pension scheme with you should always be considered.
Tax pitfalls in the surrender value
The taxation of the surrender value of an occupational pension scheme is complex and often disadvantageous. If the contributions to the occupational pension scheme were exempted from tax (according to § 3 No. 63 EStG), the entire surrender value is fully taxable. This means that the tax advantages gained during the savings phase are negated. For contributions taxed on a flat-rate basis (according to § 40b EStG old version), usually only the earnings component is taxed. The subsequent taxation can significantly reduce the amount paid out. It is advisable to seek individual advice to understand the precise impact on the tax burden of the occupational pension scheme. An ill-considered termination can result in an unexpectedly high tax demand.
Expert Tips: How to Handle the Issue of Surrender Value
Dealing with the surrender value of occupational pension schemes requires foresight. Our expert tip: Do not act hastily. Cancellation should always be the last resort after carefully examining all alternatives. Be sure to seek professional advice to evaluate the individual consequences of a cancellation or the benefits of alternative solutions for your occupational pension scheme. Document all steps and agreements carefully. A well-informed decision protects your wealth for retirement. Remember that legal regulations, such as the Occupational Pensions Act (BetrAVG), set the framework and aim to safeguard pension entitlements.
Understanding Legal Foundations and Vesting
The Occupational Pensions Act (BetrAVG) forms the legal basis for occupational pensions in Germany. It regulates, among other things, the vesting of entitlements. This means that your claims to benefits from the occupational pension scheme (bAV) remain in place under certain conditions, even if you change employers or terminate your employment relationship. Immediate vesting applies to contributions from salary conversion. Statutory vesting secures at least part of your entitlements, even if you change employers. Before considering a surrender, check the status of your vesting. This is an important factor in your decision.
Conclusion: Repurchasing the occupational pension scheme is usually a losing proposition – Advice is crucial
The surrender value of an occupational pension scheme is rarely an attractive option. The financial losses due to fees, costs, and tax repayments can be immense and reach up to eighty percent of the contributions. Termination is also only possible in very limited exceptional cases. Alternatives such as contribution suspension or transferring the contract are usually better ways to secure your accumulated capital for retirement. A thorough analysis of your situation and professional advice is essential before making a decision about the future of your occupational pension scheme. Remember that old contracts can often have favourable conditions that are worth preserving.
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More useful links
Bundesministerium für Arbeit und Soziales (BMAS) offers comprehensive information on occupational pensions.
Gesetze im Internet provides the full text of the Occupational Pensions Act (BetrAVG), which forms the legal basis for occupational pensions.
Deutsche Rentenversicherung offers an informative brochure on occupational pensions.
Publikationen der Bundesregierung presents an official publication on occupational pensions.
Deutscher Bundestag provides a PDF document with detailed information on occupational pensions.
aba (Arbeitsgemeinschaft für betriebliche Altersversorgung e.V.) delivers current statistics on the distribution of occupational pensions.
FAQ
Was genau ist der Rückkaufswert bei einer betrieblichen Altersvorsorge?
Der Rückkaufswert ist der Betrag, den Sie bei einer vorzeitigen Auflösung Ihrer betrieblichen Altersvorsorge erhalten würden. Er setzt sich aus den eingezahlten Beiträgen plus erwirtschafteten Zinsen und Gewinnen zusammen, von dem jedoch diverse Kosten (Verwaltung, Abschluss, Storno) und eventuell anfallende Steuernachzahlungen abgezogen werden.
Ist es möglich, den Rückkaufswert meiner bAV ohne Verluste zu erhalten?
Nein, in der Regel ist ein Rückkauf ohne Verluste nicht möglich. Oft gehen bis zu 70-80% der eingezahlten Beiträge verloren. Der Gesetzgeber sieht die bAV als langfristige Altersvorsorge, weshalb eine vorzeitige Kündigung mit finanziellen Nachteilen verbunden ist.
Unter welchen Umständen kann ich meine betriebliche Altersvorsorge kündigen?
Eine Kündigung ist nur in sehr begrenzten Ausnahmefällen möglich, beispielsweise bei einer sogenannten Kleinstanwartschaft (sehr geringe zu erwartende Rente, z.B. unter 37,45 Euro monatlich in 2025) oder wenn Ihr Arbeitgeber der Kündigung zustimmt.
Welche steuerlichen Konsequenzen hat der Rückkauf einer bAV?
Wenn Ihre Beiträge steuerfrei waren, muss der gesamte Rückkaufswert versteuert werden. Dadurch gehen die ursprünglichen Steuervorteile verloren. Auch Sozialversicherungsbeiträge können nachträglich fällig werden.
Gibt es bessere Alternativen als den Rückkauf der betrieblichen Altersvorsorge?
Ja, die Beitragsfreistellung ist eine häufige Alternative. Dabei stoppen Sie die Beitragszahlungen, Ihr angespartes Kapital bleibt aber erhalten und wird weiter verzinst. Bei einem Arbeitgeberwechsel kann oft auch eine Übertragung des Vertrags auf den neuen Arbeitgeber erfolgen.
Was sollte ich tun, bevor ich eine Entscheidung über den Rückkauf treffe?
Holen Sie unbedingt professionelle Beratung ein. Ein Experte kann Ihre individuelle Situation analysieren, die finanziellen Auswirkungen eines Rückkaufs berechnen und Ihnen helfen, die beste Lösung für Ihre Altersvorsorge zu finden. Prüfen Sie alle Alternativen sorgfältig.
