The German Pensionsfonds is a legally independent form of pension fund that gives your employees legal entitlement to future benefits. Pensionsfonds are regulated by the German Federal Financial Supervisory Authority (BaFin) and are subject to different investment restrictions than a German pension fund in the form of a Pensionskasse or direct insurance that allow them to, for example, invest a greater proportion of their assets in shares. Contributions to a Pensionsfonds are exempt from taxes and social security up to a limit of 4 per cent of the income threshold for government retirement pension contributions. An additional fixed allowance of EUR 1,800 can also be claimed. This fixed allowance is exempt from taxes, but not exempt from social security contributions.
The Pensionsfonds form of pension fund plays a particularly important role in Germany for moving pension provisions off a company’s balance sheet. A Pensionfonds can be used to transfer pension obligations from defined benefit pension schemes and support funds out of a company without incurring taxes. Once this transfer of pension obligations has taken place, the provisions can be removed from the company’s balance sheet. The company makes a one-time payment to the Pensionsfonds and transfers its pension commitments. The Pensionsfonds assumes the existing pension commitments and invests the funds.

The Savings Bank Pensionsfonds offers three products for moving pension provisions off a company’s balance sheet:

TransferRente Garantie

TransferRente Garantie is a traditional pension plan in the form of an insurance policy that can be used when you want to be freed of the imponderable risks of your pension obligations. It guarantees a fixed interest rate and assumes all risks, both investment and longevity risks.

Product benefits at a glance:

  • Guaranteed actuarial interest rate
  • Guaranteed amount of pension capital at the start of the pension
  • A variety of supplementary pension options available
  • Flexible expiration phase

TransferRente Vario

TransferRente Vario provides an actuarial interest rate of 4.5%, which is higher than pension plans in the form of insurance policies. This means that the payment required when the pension plan is transferred is up to 60% less than for the TransferRente Garantie guarantee product. The calculation of the payment required at the time of the transfer can be tailored to your company’s needs. Your company is liable for additional payments in the future. The lack of a guarantee means less loss of liquidity for your company.

Product benefits at a glance:

  • Existing pension schemes fully assumed
  • Transfer of pension obligations causes less loss of liquidity
  • No maximum or minimum age limits
  • Investments optimised in a fund consisting of 2 portfolios for pre-retirement and retired employees

Further information

Sparkassen Pensionskasse AG
Anna-Schneider-Steig 8-10
50678 Köln

Telefon: (0221) 98 544 - 0
Telefax: (0221) 98 544 - 599