Legal Entitlements

Your right to the conversion of earnings into pension contributions

The German Company Pensions Act (Betriebsrentengesetz) gives every employee the right to defer compensation within the scope of an occupational pension scheme. This is where the employee waives a gross part of their pay which then goes into the occupational pension scheme.

The form of provision in which the employer pays the contributions is up to the employer. If there is no such opportunity at the moment, however, the employee has the right to select provision by way of direct insurance.

Although the employee can propose a pension provider, again it is the employer who decides, which means they can opt for a different insurance provider.

Your right to information

An employer is not necessarily obliged to inform their employees of the occupational pension scheme options. If employees actually ask, though, the employer does have an obligation to tell them. In that case they must set out in detail how the occupational pension scheme in the company is organized.