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The essence of bAV

The bAV serves as a retirement savings plan that employers offer to their employees. It is based on the principle of salary conversion, in which contributions are deducted directly from the gross salary, which in turn provides tax and social security benefits.

The three pillars of retirement planning:

• Statutory pension: Based on contributions from employers and employees.
• Company pension scheme: Support from the employer, often with subsidies.
• Private pension provision: Individual austerity measures by employees.

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Legal framework and recent changes

Since the introduction of the Act to Improve Occupational Pensions and the Company Pension Strengthening Act, the framework conditions for bAV have changed significantly, which opens up new opportunities and obligations for employers.

Key legal points:

• Tax exemption: Up to 584 euros per month (as of 2023) can be paid tax-free.
• Employer subsidy: At least 15% allowance for salary conversions for contracts concluded from 2019.

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The commitment of employers

Not every employer is automatically obliged to offer a pension scheme. However, there are certain conditions under which this obligation applies, which in turn can increase the attractiveness of the employer.

Requirements for the commitment:

• Employee involvement: There is only an obligation if employees contribute to the financing.
• Statutory pension insurance: The obligation applies to all employees who are compulsorily insured under statutory pension insurance.

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Entitlement

A wide range of employees are eligible for the pension scheme, which makes this benefit particularly inclusive.

Eligible persons:

• Permanent employees
• Working students
• Trainees
• Self-employed shareholders
• Managing Director of a GmbH
• Board members of an AG

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Job change and bAV

bAV offers flexibility through the right to take along the saved capital when changing jobs, which increases the long-term attractiveness of this benefit.

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Methods of implementation of bAV

There are various ways in which employers can implement the bAV. Choosing the right path depends on several factors.

Implementation methods at a glance:

• Direct insurance: Easy to use, particularly suitable for small companies.
• Direct approval: Offers great freedom of design, but involves higher administrative costs.
• Pension fund, support fund: Different models with specific benefits and requirements.

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Contribution structure and employer subsidy

Careful planning of contribution payments and employer subsidies is crucial to make bAV attractive both for employees and for the company.

Recommendations on the contribution amount:

• A minimum subsidy of 15% is required by law
• Recommended subsidy of 20-25% can make the bAV cost-neutral for the employer.

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Tax benefits and aspects of social security law

The bAV offers significant tax and social security benefits that benefit both employers and employees.

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Why the bAV is worthwhile

bAV offers numerous benefits, from tax savings to stronger employee retention, and should be regarded as an integral part of corporate culture.

Benefits at a glance:

• Tax savings
• Stronger employee retention
• Attractiveness in recruiting

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The introduction and maintenance of a pension scheme requires careful planning and management, but at the same time offers an excellent opportunity to stand out as an employer and make a valuable contribution to the well-being of employees. At DEGURA, we are at your side to overcome these challenges together and create a bAV solution that is not only legally compliant but also enriches your corporate culture. At a time when employee retention and satisfaction are becoming increasingly important, entrepreneurial benefits are becoming more and more important. A key element in the arsenal of these benefits is the company pension scheme, which offers much more than just an additional austerity measure.