Future-proof. Smart. Plan ahead. Now.
Discover the benefits of occupational pension schemes (bAV) with nextsure. Secure your retirement with government subsidies and employer contributions – digital and transparent.
Take advantage of government support
Secure employer subsidy
Effectively closing the pension gap
Company pension scheme (bAV): A strong foundation for your future
Additional pension through employer and state.
Tax and social security savings with salary conversion.
Flexible models for individual needs.
Important component against old-age poverty.
What is occupational pension provision and how does it work?
Company pension schemes, often abbreviated as bAV, is a collective term for various measures that employers offer their employees to build up an additional pension. The core principle is that parts of the salary or additional employer contributions are directed into a pension contract. These contributions are often supported by the government, for example through tax and social security savings in salary conversion or via allowances. The aim of the bAV is to supplement the statutory pension and thereby reduce the individual pension gap in old age. Employees benefit from attractive conditions and their employer's commitment, while companies can enhance their attractiveness as employers and retain staff in the long term. nextsure supports you in fully understanding the workings and benefits of the bAV and finding the right solution for your situation, digitally and effortlessly.
OUR SERVICES FOR YOUR BAV
Customised occupational pension solutions from nextsure
Needs Analysis
We accurately determine your personal pension requirements.
Offer comparison
Transparent comparison of leading occupational pension providers and rates.
Contract Check
Review and optimisation of existing occupational pension contracts.
Funding Check
Maximising state allowances and tax advantages to the fullest.
Digital Administration
Easily access and manage your occupational pension documents online.
Potential for returns
Selection of occupational pension strategies with attractive return opportunities.
Security Concepts
Solutions with a focus on guarantees and capital protection.
Flexibility
Adapting your company pension scheme to changing life situations.
Expert Consultation
Expert support from our occupational pension specialists.
Transparent, digital, and tailored to your needs – for a worry-free future.
Ready for your
Future planning?
The implementation methods of occupational pensions: A detailed overview
There are five different ways to implement occupational pension schemes, which vary in terms of investment form, guarantees, management, and tax treatment. Direct insurance is widespread; here, the employer takes out a pension insurance policy for the employee. Pension funds and pension schemes are legally independent institutions that also invest capital for retirement provision. The support fund is often an institution supported by one or several companies that promises pension benefits. Direct commitment (or pension commitment) means the employer directly promises the employee a pension benefit and creates internal reserves for it. Each method has specific advantages and disadvantages for both employers and employees. Careful consideration of which method best fits individual needs and company goals is crucial. nextsure provides you with transparent information and comparisons to make the optimal choice.
State support for occupational pensions: Save taxes and secure allowances
A key incentive of occupational pension schemes lies in the attractive government support. In salary conversion, the most common form of workplace pension, contributions are deducted directly from the gross salary. These are tax and social security contribution-free up to certain maximum limits. This means that as an employee, you benefit from a lower taxable income and thus make net contributions that are below the actual savings amount. Additionally, employers have been required since 2019 (for new contracts) and 2022 (for existing contracts) to pay a flat-rate subsidy of 15% on the converted contributions, provided they save on social security contributions as a result. There are special incentives for low earners, such as the BAV subsidy. These diverse support mechanisms make the workplace pension an extremely efficient tool for building an additional retirement pension. At nextsure, we help you make the most of all available support options.
Salary conversion: How employees can cleverly use their salary for retirement
Salary conversion is the cornerstone of employee-financed occupational pensions. The employee foregoes a part of their gross salary, which is then directly paid into a pension contract. The clever part: On this converted amount, up to 8% of the contribution assessment ceiling of the statutory pension insurance (West) is tax-free, and up to 4% is exempt from social security contributions (as of 2024). This results in a noticeable saving in monthly expenses. The employer is also required to pass on the saved social security contributions (a flat rate of 15%) to the employee, which further enhances the pension's return. This way, a relatively small net expense becomes a significantly higher savings contribution for retirement. nextsure shows you, through specific calculations, how salary conversion impacts you personally and how you can optimally use your salary for your future.
Rights and Obligations: What Employers and Employees Need to Know About Occupational Pensions
Company pension schemes come with rights and obligations for both parties – employer and employee. Employees generally have a legal entitlement to salary conversion, meaning they can request that their employer directs parts of their salary into an occupational pension scheme. The employer must offer at least one execution method and, since the Occupational Pensions Strengthening Act, is obliged to contribute 15% to the salary conversion if this results in a saving on social security contributions. Additionally, the employer has an obligation to inform and care. They must ensure that the chosen pension solution is suitable for the employees. On the other hand, employees are obliged to provide truthful information and report any changes in their personal circumstances (e.g., parental leave). At nextsure, you will receive clear information about your rights and duties to avoid misunderstandings and ensure a fair partnership within the framework of the occupational pension scheme.
Digitaler
Completion
Independent
Consultation
Maximum
Promotion
Portability of Occupational Pensions: What Happens When You Change Jobs?
A common concern for employees is what happens to their occupational pension scheme when they change jobs. The good news: your accrued occupational pension claims are generally protected and can be transferred – this is known as portability. For vested entitlements (usually after three years of employment and a minimum age of 21), there are several options: the contract can be made dormant and left with the former employer, continued privately with your own contributions (if the arrangement permits), or transferred to the new employer. Transferring to the new employer is the most graceful solution, but it requires their consent and a suitable arrangement. The Occupational Pensions Act provides regulations for this, including the right to transfer capital under certain arrangements such as direct insurance or pension funds. Nextsure provides comprehensive advice on options when changing employers so that your pension provision continues seamlessly.
The occupational pension for specific target groups: Solutions for individual needs
Occupational pension schemes are not just a standard model but also offer solutions tailored to specific target groups. For low earners (up to 2,575 euros gross monthly salary, as of 2024), there is the so-called BAV subsidy: If the employer pays between 240 and 960 euros annually into a bAV in addition to the salary, they receive a state subsidy of 30% of this amount, which can be directly deducted from income tax. This makes the bAV attractive to employees with lower incomes as well. Managers, on the other hand, often have higher pension needs that go beyond the standard bAV. For them, reinsured support funds or direct commitments, which allow for higher contributions and benefits, are suitable. For shareholder-managing directors of a GmbH, the bAV can also be an important component of retirement provision, although special tax and legal conditions apply here. nextsure analyses your specific situation and finds the appropriate bAV strategy that takes into account your individual goals.
Returns and Security in Occupational Pension Schemes: Investment Strategies and Guarantees
In occupational pension schemes, both return opportunities and security aspects play an important role. Investment strategies vary depending on the implementation method and chosen product. Traditional plans often rely on guaranteed interest rates and conservative investments to ensure a high level of security. Modern occupational pension solutions often also offer unit-linked options, which open up higher return opportunities but can also be associated with market fluctuations. Many products combine guarantees (e.g. contribution guarantee) with a return-oriented investment. Employers have a duty of care when selecting occupational pension providers and products and should pay attention to a balanced ratio of return, security, and costs. The long-term nature of occupational pensions allows you to benefit from the opportunities of capital markets, while protective mechanisms such as the Pension Protection Association (PSV) step in under certain implementation methods in the event of employer insolvency. nextsure helps you compare products and find an occupational pension scheme that meets your return expectations and security needs.
Who is entitled to an occupational pension?
Digitalisation is also transforming the world of company pensions, making them more accessible, transparent, and efficient. As a digital insurance portal, nextsure uses modern technologies to simplify the entire company pension process for you. From the initial information and comparison of various offers to contract conclusion and ongoing management – everything can be handled digitally. This means less paperwork, quick access to your contract data, and clear presentation of complex information for you as an employee. Employers benefit from simplified administration, reduced management costs, and digital tools for communication with their employees. Chatbots, online calculators, and personalised dashboards offer a direct line to your pension. Discover with nextsure how easy and convenient company pension schemes can be in the digital age, without having to forego expert advice.
