Reform of company pensions: positive approaches to pension scheme

In a crucial step for everyone who rely on a secure pension, the ABA Working Group on company pension scheme has enthusiastically accepted the new government draft for the 2nd company pension strengthening law! The decision that was made in the capital of Berlin today paves the way for an urgently needed reform in the Bundestag and Federal Council.

Georg Thurnes, the committed chair of ABA, emphasizes: "The planned changes could set important impulses for company pension schemes, especially for the promotion of recipients of low income and the use of the social partner model." It is a sigh of relief in the industry: the desired changes in supervisory law for pension funds and pension funds are considered to be true treat. Plans for more flexible coverage and investment regulations finally give the pension scheme the required scope for attractive investments!

improvements required!

not everything shines! Thurnes warns: "In total, the revisions are left behind our expectations. We would like to be clearly more noticeable bureaucracy relief!" A clear message that also received the members of the standards control council, which in his statement recommends to significantly increase the threshold for consent -free severance payments of small entitlements. An increase from 1% to 2% of the monthly reference variable could make access to their company pension scheme considerably easier for people!

"In addition, a new regulation should enable the employee's consent if the pensions are up to 4% of the monthly reference size," adds Thurnes. The demand for digitizing evidence of pension commitments without an elaborate written form is also very popular. "This accelerates and simplifies the procedure considerably!" He emphasizes.

an important step for pension!

Another ray of hope is shown in the planned change in § 187a SGB VI. Here it is clarified that a “repurchase” of early retirement discounts is no longer possible before the age of 50. This could prevent excessive use of this regulation and ensures adequate spread of precaution over all three pillars: statutory, company and private pension.

"We have enough of unnecessary higher insurance in the statutory pension," says Thurnes. "Time is ripe for a strong company pension scheme!"

The ABA, a driving force in the discussion about company pension schemes for decades, leaves no doubt that this reform is a further step in the right direction both quantitatively and qualitatively. The interfaces between labor, tax, social and supervisory law are finally effectively addressed. One reason for hope for everyone who wants to build on a timely pension!

The ABA is the top association for company pension scheme in Germany. For over 85 years, she has been fighting neutrally for the preservation and expansion of this important pillar of retirement provision in private and public sector.