The objective of occupational retirement provision (bAV) is to supplement state social security benefits and in doing so enable individuals to maintain their accustomed standard of living after retiring or in the event of an accident. In contrast to other social insurance schemes, occupational retirement provision is financed by funding in advance. This means that all affiliated members save their own retirement capital individually, which is used for the pension payment in the event of a claim.
Deferred compensation is based on an agreement between the employee and their employer. This agreement stipulates that part of the employee’s gross salary is paid into a scheme that provides an equivalent entitlement to occupational retirement provision.
Capital for retirement benefits is built up with the start of occupational retirement provision. ePension manages a pension account for each member. In particular, the following are credited to this account:
Upon reaching the retirement age applying to the statutory pension scheme, the member is entitled to a guaranteed life annuity that is calculated on the basis of the pension capital. The pension capital is equal to the balance of the pension account and invested in accordance with the Statement of Investment Policy. Example: A 40-year-old participant pays a regular monthly savings contribution of EUR 350 until reaching retirement age (67). At age 67, they are thus entitled to a guaranteed pension of EUR 5,804 per year.
ePension reinsures occupational disability benefits and an optional agreed additional death capital with Gothaer Life Insurance.
Members are deemed unable to work if it can be objectively demonstrated on the basis of a medical examination that due to illness or an unintended injury (accident) they are no longer in a position to perform their job or another occupation considered appropriate for their position in life, level of expertise and skills, or are only able to do so in part. As long as this is provided for in the pension plan, insurance cover can be provided for occupational disability.
As long as this is provided for in the pension plan, no contributions need to be paid during the period a participant is unable to work. The pension cover is maintained.
Should a member die, their surviving partner – as long as this is provided for in the pension plan – is entitled to a partner’s pension.
As long as this is provided for in the pension plan, an orphan’s pension will be due should a participant die and leave children behind.
An additional lump-sum death benefit can also be included in the insurance. The entitled
Each year, we will provide you with your personal statement of pension benefits. This contains important information on your personal cover upon reaching retirement age and in the event of occupational disability or death. Use our explanations to find out more about your personal pension situation.