With the New Year there have been some important changes in legislation relating to company pension schemes. Delta Lloyd has compiled the most important changes taking place this year into the successful "bAV-Essentials" brochure. This handy brochure is available free from www.deltalloyd.de/bav.
With the New Year, there have been some important changes in legislation relating to company pension schemes. These changes mean some improvements for employees, but action may need to be taken by those responsible for company pensions.
Increase in tax relief
A positive change for employees is the raising of the social insurance contribution ceiling from €63,600 per year to €64,800. This means that instead of the €2,544 which until now could be invested in a company pension tax and social insurance contribution-free, the figure is now €2,592.
A further improvement is the reduction in the statutory vesting age for new employer-funded agreements from 30 to 25 years, which is good for women in particular. Until now many employer-funded pensions have fallen short because young women have stopped working to raise children before reaching 30 and therefore do not fulfil the requirements for their vested benefits.
Overhaul of pension reserves
Along with the retirement age for the statutory pension system, the legislation for the financing period for pension reserves for executive directors and business partners has also risen. As a result the current pension reserve must now be checked and adjusted. Otherwise mistakes in the balance threaten to lead to under- or over-funding.
Free brochure on these important changes
Further details on these and many other changes in the company pensions sector have been compiled into the successful "bAV -Essentials" brochure by the Wiesbaden-based financial services provider Delta Lloyd. The free advice comes in a practical pocket sized pamphlet and in around 50 pages gives details of the important changes and modifications as well as the basic facts and figures on tax, social insurance and employment legislation.
The Delta Lloyd "bAV-Essentials" booklet is available free (in German) from www.deltalloyd.de/bav. Journalists please write to presse@deltalloyd.de.
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For further information:
Martina Fassbender
Telephone: +49 (0) 611 773 25 71
Fax: +49 (0) 611 773 14 25 71
E-mail: martina.fassbender@deltalloyd.de
Website: www.deltalloyd.de
Notes to editors:
About Delta Lloyd
Delta Lloyd Germany is a 100% subsidiary of Delta Lloyd Groep, Amsterdam, and therefore part of the British Aviva Group. The company offers a one-stop shop for a wide range of financial, investment and provident products and also provides expert advice on all financial matters. In addition to Delta Lloyd Leben and Hamburger Leben life insurance companies, the Delta Lloyd Group in Germany is made up of a pension fund and a consultancy for company pension schemes, as well as the private bank Gries & Heissel and a mortgage broker.