Defined benefit pension plans

In a defined benefit pension scheme, your company undertakes to use company assets to pay pension benefits to employees or their family members when an insured event occurs (retirement, disability, death). Investment funds and/or life insurance can be used to cover the financial risks of premature payments due to employee disability or death that are associated with a defined benefit pension scheme, and to provide for retirement.

The employer forms provisions for future pension obligations on its balance sheet which result in a deferral of taxes. In the defined benefit models offered by DekaBank, coverage is provided using Deka investment funds.

Contributions are paid to the pension protection association Pensions-Sicherungs-Verein auf Gegenseitigkeit (PSVaG) to provide insolvency protection for benefits that are non-forfeitable by law. These contributions vary according to the size of the entitlements. In addition to the insolvency protection provided by PSVaG, securities accounts are also pledged to employees in the DekaBank model, thereby ensuring comprehensive insolvency protection.

Employer contributions are fully exempt from taxes and social security. Employee contributions considered to be deferred compensation are fully exempt from taxes and exempt from social security up to a limit of 4% of the income threshold for government retirement pension contributions. The reduction in social security contributions decreases your non-wage labour costs.

Your benefits at a glance:

  • No tax limit on pension funding ensures high tax-exempt contributions
  • Social security savings
  • Benefit structure is highly flexible
  • Liquidity gains due to formation of provisions
  • Lump-sum benefit option means that there is no need to manage pension entitlements over the long term

Since pension funding is fully tax-exempt, defined benefit pension schemes are particularly suitable for managing shareholders.

Deka-PensionPlan Basic

Due to the deferred taxes and expected returns, an employer-funded defined benefit pension scheme is an attractive alternative to a salary increase.

Your company commits to a lump-sum payment upon retirement, disability or death. Contributions are paid into the Deka-bAV fund after deducting a term life insurance premium.

You decide each year what contributions to make and for whom.

Deka-PensionPlan Bonus

An employee-funded defined benefit pensionscheme offers advantages for both your employees and you.

Your employees transfer a portion of their gross earnings into a company pension scheme, thereby reducing their taxes and social security contributions (exempt from social security up to a limit of 4 per cent of the income threshold for government retirement pension contributions). A portion of the contribution is paid into a term life insurance policy, and the large majority into the Deka-bAV fund, which invests in selected equities worldwide and is specifically designed for retirement pension schemes.

You commit to paying your employees a lump-sum amount upon retirement, disability or death.

Both parties can benefit:

  • Tax advantages for your employees, social security savings
  • Increase loyalty of skilled employees to your company
  • Liquidity advantages from the formation of provisions


Managing shareholders of a company are generally not required to pay social security contributions. This makes the company pension a key tool in providing for old age. The defined benefit scheme for this product has been specially optimised in terms of taxes and returns.

The pension scheme provides for a retirement pension, and also provides coverage in the event of disability or death. Take advantage of our innovative fund-based concept for your retirement pension scheme. You can choose from a wide range of Deka Group investment funds. The ideal investment can be custom-tailored to your individual needs, taking into account your financial statements and tax situation.

Benefits for you and your company:

  • Tax-exempt contributions
  • Liquidity advantages from the formation of provisions
  • Insolvency protection with no need for contributions to the pension security association (PSV)