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Category pillar · bAV / Occupational pension

Occupational pension for employers

Salary conversion is an employee right. The statutory employer top-up sits with the company. This page frames the decision without euro ceilings or tariff names.

Best fit audience: Owners, managing directors, and HR leads at small and mid-sized employers

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What to expect

  • A clear split between the statutory frame and anything you choose to add.
  • Which financing shape fits: the employer pays, employees convert salary, or both.
  • What must be settled before anyone on the team is promised a benefit.
  • A conversation as the next step. No sample maths built on unchecked yearly rates.

Core focus areas

  • The right to convert salary
  • The statutory employer top-up where conversion saves social-security contributions
  • Employer-paid and mixed financing
  • Direct insurance as the usual starting point for a smaller employer
  • Existing contracts that nobody is looking after

Related pages

Decision outline

  1. Check whether a scheme already exists and who looks after it.
  2. Decide who pays: the employer, the employees, or both.
  3. Choose the implementation path. For many smaller employers, direct insurance is the practical start.
  4. Prepare payroll and the message to staff before any promise goes out.
  5. Plan the follow-up, not only the setup.

Common mistakes

  • Treating the pension as the employee’s problem when the top-up sits with the employer.
  • Leaving an old scheme running without knowing who maintains it.
  • Quoting euro ceilings from an old year, or from memory, to the team.
  • Promising a fixed tax-free or social-security-free amount. The ceilings move with the contribution base.
  • Selling the pension and the company health plan as the same benefit.

What to do this week

  • Note whether contracts already exist and which implementation path they use.
  • Ask whether employees have already requested salary conversion.
  • Collect three points for the call: who pays, which group, who signs.

What this page is based on

  • Logan D. Williams advises as a tied agent. Register details are in the imprint.
  • The sequence is: check what exists, set who pays, prepare the message to staff, then stay with it.
  • Statutory euro amounts are not quoted here from memory.

Next step now

Bring your current setup and open questions, and we map a practical decision path in one focused session.

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FAQ

Is an occupational pension compulsory for the employer?

Employees have a right to convert salary. Where that conversion saves the employer social-security contributions, a statutory top-up applies. Anything beyond that is your decision. This page does not quote euro ceilings. We check those against the current year.

How is this different from a company health plan?

The occupational pension is retirement provision for later. The company health plan is extra health cover for today. They can sit together. They are two decisions.

What path do smaller employers usually use?

Often direct insurance. In the usual shape the employer is the policyholder. Other paths exist. Fit depends on what you already have, headcount, and who pays.

Are tariffs or contribution amounts listed here?

No. Tariff names, product prices, and yearly ceilings do not belong on this page. We set those in the conversation against the current rules and your company.

What does salary conversion cost the employee in net pay?

Where the statute allows it, a contribution can be favoured for tax and social security. It then costs less net pay than the same amount in cash. How much depends on salary, tax class, and health insurance. This page does not compute that for a person.

Who is the policyholder?

On a classic direct insurance policy, the employer, not the individual employee. Policyholder, premium payer, and payroll have to hold the same structure.

What about administration and liability?

Unclear promises and neglected schemes are the practical risk. A maintained scheme with a clear financing rule is the alternative. This page does not promise freedom from liability.

Does every employee have to join?

When the employer pays, the people you name are usually covered. When employees convert their own salary, each person decides. Take-up is often lower then, because net pay visibly falls.

Does this replace a tax adviser?

No. This is not tax, social-security, or legal advice. Ceilings and payroll belong with the tax adviser or payroll office before anyone is promised a tax-free benefit.

What happens on the first call?

We look at what already exists, who pays, and who has to decide. You leave with a next action. A contract exists only after a specific offer.

Occupational pension for employers · German Financial Planning