Pension

The board, also known as pension or annuity is a regular Unpaid income (mostly) serves as pensions.

The civil servants and the Military Pensions are retirement systems sui generis. In addition, there are statutory pension, supplementary pension of the public service ( ZÖD ), company pension, private pensions ( Riester systems ) and others.

• 2.1 Retirement ages

Germany

The civil servants' pensions in Germany is governed by the Law on the benefits of civil servants and judges of the Federal ( BeamtVG ). In autumn 2006, the associated legislative competence has been decentralized as part of the federalism reform, so that federal and state governments now have to regulate it the pensions of their respective officers for their area. First countries have made ​​use of this competence use and adopt new care laws for their countries. Some countries have adopted the provisions of the BeamtVG for their countries fully or partially by law. The service supply of professional soldiers is regulated in the Act on the supply for the former Bundeswehr soldiers and their survivors ( SVG). The basic structures of the civil service pension presented below are largely the same content as the soldiers care. The most significant differences arise in the retirement age ( for professional soldiers, the age limits apply according to § 45 soldiers Act ( SG) ), which is lower for the majority of professional soldiers and the resulting pension rate. On January 1, 2012, there were approximately 1,512,000 pensioners according to officials and soldiers care law in Germany ( destatis, subject-matter series 14, series 6.1).

Pension beneficiaries

The pension is a pension and is made ​​in Germany to officials, judges and professional soldiers, as well as pastors, church officials and other persons who are in a public employment when they have reached retirement age. Pension receives a retired civil servant, in whose person the requirements of § 4 para 1 Civil Service Pensions Act ( BeamtVG ) are present.

According to § 4 para 1 BeamtVG least one of two for pension qualifying circumstances must be present:

• Prior to retirement, a service life of at least five years was completed ( usually, corresponds approximately to the waiting times for old-age pensions in the GRV according to § § 35 to § 42 SGB VI).
• The retirement was because of his incapacity, which has occurred as a result of damage in the course of or from the instigation of the service and without gross negligence of the officials, so in particular by a service accident (roughly equivalent to the accident benefits under § § 56 to § 62 SGB VII).

Only retired civil servants are covered. Whose civil service so will not terminate at retirement, but by dismissal, does not receive a pension, but is in the Statutory Pension Insurance ( GRV) nachversichert. However, retirement is also the interim retirement, in the political officials may be added at any time. The conditions of retirement are part of the legal status of civil servants and are therefore regulated exclusively in the Federal Civil Service Act.

Amount of the pension

Under current law increases each full year of service in which a tenured employee has worked full-time at the same time, the individual entitled to a pension by the value 1.79375, so that after 40 years reached the highest possible value of 71.75. The thus achieved value represents the percentage by which the currently valid claim remuneration of active civil servants is multiplied in the same grade and step, to calculate the rightful claim. As far as parts of a family surcharge exist, such are also subject to the aforementioned reduction. There are also a number of allowances and adjustment surcharges, but almost all the result of earlier reforms and are to be regarded as being phased out.

The side effect that promotion increases the pension inappropriate nearing retirement, is to counteract that the higher rated position at least two years must be exercised in accordance with § 5 paragraph 3 BeamtVG. The introduction of a three-year period by the German Bundestag has rejected the Federal Constitutional Court.

If only part-time work, then the annual rate of 1.79375 reduced by the corresponding part-time factor. To this may periods of employment in the public service that have not been done in the civil service to be recognized in the calculation of the factor. Likewise, there are supplementary periods, unless an official incapacitated before age 60 is ( two-thirds of the remaining time). If an official is not present incapacity at his own request before the end of the 65th year into retirement (age limit should be raised similar to the statutory pension insurance ), his rights shall be reduced by 3.6 % per year of early outlet. Similarly, the pension shall be at an official who is retired on grounds of invalidity, reduced by 3.6% for each year before the age of 63 years, with a maximum of 10.8 %. For part-time in the form of semi-retirement, the reduction of the annual rate by the corresponding part-time factor does not apply. During this time, each spent in the retirement years rather than otherwise 1 % 0.9% of pensionable service credited (ie always 90% creditable - in eg six years part-time at least five years creditable ).

Minimum supply

To meet the Alimentationspflicht and thus also support the independence of the officials, the Civil Service Pensions Act provides for an accident pension and a minimum pension. For a service accident which leads to premature incapacity, paying particular attention to the attribution times the minimum pension rate will be increased to a minimum of 66.67 %, but the maximum value of the achievable power there must not be exceeded ( § 36 BeamtVG ). There is also an official independent and official dependent coverage, have the effect if a disability service without accident occurs ( for example due to illness); defined as the higher will be granted. The official independent minimum pension is 65% of the relevant emoluments from Grade A 4, the amt dependent minimum supply 35 % of the relevant remuneration from pensionable grade (§ 14, paragraph 4 BeamtVG ).

Maximum achievable pension amount and crediting

The maximum supply rate is 71.75 %. It was in 2001 at 75 % and was progressively reduced by the supply Amendment Act 2001. Also located in the former civil servants affected by the cuts. The Federal Constitutional Court in Karlsruhe 2005, three lawsuits Affected rejected against the lowering of pensions as unfounded ( Case No. 2 BvR 1387/ 02). From 2011-2017, the salary adjustments will turn out annually 0.2 % lower to build up a pension reserve. These valid rules since 1999 ( Pension Reserve Act) was suspended, but is optionally a waiver of 2 % of the pension increases spread over ten years.

Where an official claims in addition to a pension from the statutory pension insurance, this will be dependent counted from the single set of circumstances, in whole or in part on the board to prevent an oversupply. Also, an income that achieves a pension recipient will be deducted from the security where a given limit is exceeded. Roughly additional income and additional pension is not counted as long as the maximum supply rate is not exceeded.

Survivor's pension

Survivors of a deceased official received a widow's or widower's pension, orphan children is money paid. For widows or widowers, the corresponding power is 60 %, while born after December 31, 1961 only 55 % of the board, while retaining also the child-related parts of the family surcharge in full. Survivors spouse will receive a survivor's pension as federal officials and in most federal states of Berlin, Bremen, Hamburg, Brandenburg, Mecklenburg -Western Pomerania, Rhineland -Palatinate and Saarland. For half-orphan's orphan's pension is 12 % of the pension for orphans is 20 %. Do the survivors from their own income, they are partially credited in widows and orphans, this can also lead to a complete cessation of payments. Orphans receive the orphan's pension until the age of 27 years, unless they require the payment (ie, have no income ), after which only then, unless they are able to become an independent work to cover their living expenses ( disabled).

Inventory the marriage or civil partnership at the time of the death of the care recipient less than a year or it was closed until after the 65th birthday of the supply receiver and was childless, so it is considered regularly by a supply See Under current law, resulting in the denial of power to the widow or widower leads. In exceptional cases, however, a so-called alimony (usually in the amount of the survivor's pension ) granted.

Comparison between old-age pension and pension

A direct comparison between age pensions is difficult and due to differing legal target directions also limited due to different calculation bases allowed (see minimum supply). For the calculation of net income different types of income, taxation and cost must be considered. The Federal Statistical Office calculated for the household of an employee or official about the same OECD (Updated 2002). For the retirement of the households of employees by the Federal Statistical Office determines a decrease in income, according to OECD scale of 44 % and 13 % for a pensioner. Many years of insured employees who were released in 2003 by reaching the age from the labor force, received a pension from an average of € 1,227 per month after deducting costs for health and nursing care ( old Länder). , 1% of all employees were in the old federal states a pension 1.800 €. The average pensions totaled € 2,540 per month in January 2012 (source: destatis, subject-matter series 14, series 6.1).

While the relative numbers (such as the drop in income ) show that officials are significantly better off in old age as employees, the absolute heights of remuneration but only conditionally comparable: 78 % of civil servants are in the higher or superior service, that is usually associated with university or technical college degree. For employees, this ratio is significantly higher, with workers still far lower. Differences in educational attainment lead to differences in income and thus affect the pensions of. However, this does not automatically mean that salaried academics will automatically receive a higher pension than workers with vocational training. Rather, many salaried academics threatens poverty in old age, as they go into the rule later to work, do several low-paying internships and unlike officials can also be unemployed. The point system of statutory pension insurance taken into account, the average income received during working life and is not, in contrast to public sector pensions, due to the significantly higher final salary. In addition, the income threshold distorts the image in the pension system. Even with a larger part of the more senior officers of the higher civil service and almost universally the case of officials of the higher service gross salary is above the income threshold, but the board is regularly calculated content from the last (full). Exceeds the salary of a pensionable employee, however, the contribution ceiling, the excess amount will not generate earnings points and therefore does not receive an increased pension.

Another problem with the comparability are the different careers: the standard pensioner with his 45 years of work there is in fact barely, for an average of 10 % unemployment lead among pensioners necessarily mean that of the 40 - about four years for 50 years between leaving school and retirement unemployment decreased contributions are paid.

The so-called standard pensioner who has worked 45 years with average earnings of a German worker with 67 years in 2030 will retire, will not reach the poverty line of 938 €. For officials such a development because of Alimentationsprinzips not apparent before.

Between age pensions, there are numerous differences:

• The pensioner receives after reaching the age limit up to 71.75 % of his final salary as a pension (based on the gross salary, as of 2012). This full entitlement will only be reached after 40 years of service. Pensions are calculated according to the pensionable service time (§ 6 BeamtVG ) and the pensionable remuneration (§ 5 BeamtVG ).
• The retirement pension is dependent on level of contributions and contribution period. It takes into account services provided pension contributions - must be provided at 50 % by the employee and employer - except for low-income earners. When average monthly employee salary of € 3,304 is given by a formula pension pension of € 35 per year. The old-age pension of the " benchmark pensioner " is on average 48 % of the last gross income. Old-age pensions expected to fall up to 40 %. The sustainability factor makes it possible to reduce from one year to the pension depending on the ratio of pensioners / contributors.
• Retirees are entitled to a minimum pension, which follows from the maintenance principle, which is to protect the officials so that the desired independent office management is ensured by the officials at any time. Single civil servants receive 1499.95; € (gross) (as of 2014). Basis for calculating the minimum supply 65 % of the last step of grade A4. Old-age pensions are not limited dependent and principle down of the services pension contributions ( earnings points / pension formula ), but if necessary, other state benefits such as basic security, housing benefit or income support related - exactly this is to be spared retirees to bring their too active times can lead act independently.
• Retirees receive from their employer usually 70% of their illness and care costs as aid refunded, however - in line with statutory health insurance - not all expenses eligible. Although subject to civil servants (and therefore pensioners ) to January 1, 2009 are not required to insurance, but if they do not want to have to bear the ultimately hardly calculable risk of the remaining cost share, they had to take out for the rest of a private health and nursing care. Based on the fee structure of such insurance, by many different factors ( age, number of insured, etc.) and depends on the scope of services, the posts are very different and, since there is no free co-insurance of spouses and children, and the contribution is not on the individual income -oriented, be from about 3 % to about 25 % of the pension. However, it is possible for the researchers to be insured in the basic rate. There is also for civil servants who are insured in the statutory health insurance, the possibility of keeping the membership, but then they must also pay for their own employer contributions, so that this choice is not worth a rule; a precipitated from the statutory health officer must not be a member there again normally. In contrast, old-age pensioners pay the uniform half- share of health insurance and an additional contribution of 0.9%. With the introduction of the health fund on 1 January 2009, the contribution for the retiree to a uniform 8.2% (7.3% 0.9% additional contribution ) has been fixed. On 1 July 2009 he declined to 7.9 % (7.0 % 0.9%). In addition, ( July 1, 2008 1.95 % of the pension and possibly 0.25 % additional contribution in childlessness ) retirees pay the full insurance. Spouse and possibly children are non-contributory insured, provided that they relate not have to social insurance income.
• Retirees pay income tax on the total pension income abzügliches of care allowance, pension documents by the end of 2004, the income tax only the income share, which depended on the retirement age and year. In 2005, old-age pensions were subject to 50 % tax base of the income tax. By 2020, the tax base is increased in increments of 2% to 80 %, to 2040 in steps of 1% to 100% ( Retirement Income ). Due to the basic tax -free allowance unmarried standard pensioner but ones as late as 2011 (West) and 2013 (East) will be affected, if the amount of approximately € 639 ( 2008), had not yet been raised.
• Part of the pensioners receive ( depending on the service the Lord) once a year end bonus ( Christmas bonus ), in part, the bonus is also paid monthly. This claim has been reduced several times in recent years and is partially omitted entirely. Pensioners receive a corresponding increase in their monthly pension if those benefits were pension insurance ( ie income including Christmas money below the upper limit) and have thus been taken into account in calculating pensions of active working age earned Christmas bonus or other additional benefits such as holiday pay only. Recent cuts in Christmas and holiday pay of standing in the workplace affect workers already verrentete workers no longer sufficient, while deterioration of officials covers almost always implemented with retirees.
• Company pensions are paid in a variety of larger companies and for workers in the public service. A total of 16 % of all employees receive such an additional pension of an average of € 325 (2002 ), while pensioners do not refer such services or a credit as public pensions takes place ( see next point).
• Retirees who have purchased earlier than employees or workers pension rights, in addition to the pension receive a pension. This benefit, however, be deducted from the pension in accordance with § 55 BeamtVG completely or partially reducing, ie the civil service pension shall be reduced (and at the beginning of the month for the paid only at the end of the month pension). Also largely credited survivors' pensions.
• Retirees with spouse or child benefit entitlement is part of the gross income as long as paid due to the Alimentationsprinzips the corresponding proportion of family-related as part of the pension, such as marriage or child support is authorized.
• The old-age pension arises from a contract between pensioners and pension providers; the employer is not involved here. Officials remain for life officials; retirement simply means the exemption from the obligation to service the exercise. Officials may also be removed after retirement from the civil service (eg due to commission of a felony ); they lose their right to a pension regardless of date of service,. However, they will nachversichert with the retirement from the civil service retroactively in the statutory insurance and they have a right to benefits from statutory pension insurance, however, due to the fundamental differences between the two systems, significantly lower.

Civil servants' pensions and social security pensions are difficult to compare; a simple comparison of the above-mentioned percentages allows no conclusion to the actual power level of an individual. The average pension of civil servants amounts to 2570 euros, that of a pensioner to 984 euros. However, it must be noted that almost 80% of officers have completed a course of study.

Sustainable financing of the pension

The legislator has to be provided by the employee in addition to a ( Riester -Rente ) funded supply to the demographic development responds in pension funds, with the partial transition from the PAYG system. The future generation was relieved to € 1,800 billion by short- and long-term spending limit to pension subsidies from the federal budget. The sustainability gap of the pension could hereby be closed.

For the public sector pensions also provide a considerable burden dar. How Bernd Raffelhüschen calculated, inter alia, in a 2005 study, the present value of pension obligations amounted to € 1,797 billion of countries and are therefore larger than the reported total debt of public budgets. In several states efforts through the establishment of pension funds to secure the supply of newly recruited officials spending and therefore their households also sustainable. A real relief of households is, however, only be expected if these new recruits to retire. The utility tax rate from the high 2001 level rise ( about 10%) in many states to over 20% in 2020, the city state of Hamburg even every fourth euro of revenue to finance pensions will be spent. Here it should be remembered that this is mainly due to the fact that the Hanseatic city has not paid since about the beginning of the eighties in the pension fund officials and thus made ​​no reserve. The pensions must therefore be financed through loans, what is the cost naturally increases considerably.

Rhineland- Palatinate in 1996, a pension fund established to cover future pension and benefit services. Between 27.7 % and 38.8 % of the salary expenses for newly hired officers in addition to a fully-funded funds are supplied for older newly hired officers, the percentage increased from 45 or 50 years to 50 or 100%. By 2004, the new editions of 20 % of the country's officials are covered by the pension fund.

However, the per capita debt has significantly increased annually in the same period. The additional funds had to be provided by debt and provide first no lasting relief of the budget, these This shows that especially for the states with their high staffing levels to officials the sustainable financing of care is questioned.

Current legislation

The German Bundestag approved on 30 June 2006 with the required 2/3-majority the Basic Law amendments needed to implement the reform of federalism. The Federal Council has also agreed on 7 July 2006. The decision means for the public service law, in future, the states are responsible for the downgrade, utilities and career right for state and local officials.

The reorganization of legislative competence has the consequence that the states have the right to make independent arrangements to pay, to the runway and to supply in accordance with the constitutional norms. Uniform Federal determinations can be made to state rights and state obligations. For a transitional period, the uniform federal regulations on remuneration, career and supply will continue to apply the existing federal regulations as shall continue to apply as long as no use has been made of the new skills. This development can be uncoupled eg federal officials from the country's official: With effect from 1 January 2008, the basic salary for federal officials to a base amount to € 50 per month and the pensionable salaries have been increased by 3.1 %.

The then Minister of the Interior Wolfgang Schäuble ( CDU) spoke on 14 August 2007 for a reform of the civil service pensions and raising the retirement age to also 67 years: "Even the officers, soldiers and judges of the Federal will have restrictions on their pension that the limitations in the pension sector. "Land of Hesse, for example, has already been implemented in its reform of the civil service pension law in 2011 that. But it also the special scheme was borrowed from the area of pension insurance, with at least 45 years of service continue transferred to the long-time officials at his own request at the end of the month in which they turn 65 years of age, with no deductions for pension in retirement can be.

To control the power loads in a composite-and transnational employer change the treaty on the distribution of power loads with composite-and transnational employer changes ( supply load-sharing government contract - VersStaatsV ) was December 16, 2009 and January 26, 2010 concluded between the Federation and the Länder.

On 1 July 2013, the rate of pension increases in Germany. Retirees from the new federal states receive 3.29 percent more pension. The old federal states receive only 0.25 percent more.

Churches

The churches and any other organizations with the statute of a public law entity with employer ability are entitled to verbeamten employees. In their salary and pension rights they shall do so usually the law of the state from where they are based. The respective state and federal regulations are largely adopted mutatis mutandis.

For the care of their pastor and church officials, such as employees with special administrative tasks or teacher in the church service, the churches have long been established pension funds, shall be made to the newly defined every year payments by the employer.

Austria

In Austria earlier retirees were (as pensioners in Austria are residents of nursing homes / homes for the elderly called ) only former officials, while retirees have previously worked in the private sector. Today, all former workers receive a pension which, however, not the same calculation basis, such as tracing times are subject. Today pensioners are consistently referred to as pensioners.

The word board for a permanent performance of the pension insurance system was introduced in Austria by legislative amendments in 1962 - previously called the General Social Insurance Act ( General Social Security Act ) and pension insurance benefits as pensions. This linguistic blur is today promoted by the fact that those services for which in Austria the word board is used, are still referred to as pension in Germany. Next also uses the law of the European Union, the word for pension benefits from pension insurance. As pensions the ongoing payments from the statutory accident insurance in Austria are identified.

Austrian officials refer to as pension relaxation enjoyment, no pension. The rest enjoyment is provided by the former service authorities. A pension insurance for civil servants do not exist in the Austrian Social Security. Nevertheless, the officials make a pension contribution, which was raised in the 1990s in terms of the approximation of officials and employees to 12.55%. In fact, this is only " look", as this amount will be paid to any office, but will be retained by the department and the gross subscription is just lower this own contribution.

Despite the so-called pension harmonization on 1 January 2005, the Austrian pension system differs continues between the largely unified statutory pension insurance ( includes salaried workers, farmers and self-employed) and the various civil service pension systems.

Retirement age

For public servants who are civil servants was a retirement age of 60 years, which is lifted with the pension reform from 2003 to 2017 at 65 years. For contract staff and employees in the private sector a retirement age of 60 for women and 65 for men is considered. Starting with 2024 is to be raised to that of men by 2033 the retirement age for women. By early 1993, an adjustment of the beginning age for women was raised to the rank of men in the Constitution and thus beyond the reach of the Constitutional Court, which has recognized the different retirement age as unconstitutional.

Since the end of 2011 an early increase is discussed. A lower by 5 years of contributions is used as (co - ) cause of the gender-specific lower acquisition and retirement income; Gender Wage Gap cf. Politically, the unequal age of retirement is partially used as a " pawn " for other equality measures.

Due to the previous retiring the one hand, the significantly higher life expectancy on the other hand, and the resulting longer Pension entitlement period, the average Austrian woman despite lower monthly pension total expected pension benefits more than the average man, with approximately 87,000 €.

Switzerland

The pension plans in Switzerland is based on the three-pillar principle. In the three- pillar principle of retirement AHV and IV together constitute the first or the public pillar. The pension benefits of these two insurance companies to secure the basic needs. In special cases, also help the supplementary benefits ( EL) to finance the necessary living requirements.

The first pillar is supplemented by the pension (pillar 2), the Occupational Retirement, Survivors' and Disability Pension Plans ( BVG). These two pillars secure at least 60 % of the last salary, if no deposit are gaps; the second column is to allow together with the third pillar ( private provision ) the continuation of the usual lifestyle. The first pillar is obligatory for all, that is also self-employed and non-employed - for example, for mothers or fathers who run the household and take care of children. The second column must be connected only workers. The third pillar - private pension schemes to cover other needs - is voluntary, but in contrast to the usual savings partially tax- favored (pillar 3a).

These three pillars together form the three- pillar approach, enshrined in the Federal Constitution since 1972. Aim is to meet the individual needs of retirement age.

The AVS is the most important branch in the Swiss social security system. Aligned are mainly two pensions: one for retirees, the other for survivors and disabled. The retirement pension allows a financially largely independent withdrawal from working life. A survivor's pension will prevent the suffering that the death of a parent or spouse with you, a financial emergency is added.

The normal retirement age in Switzerland is 65 years for men and 64 for women. It is possible to retire early. At the earliest age of 58 can receive a pension from the second pillar are based, before the capital is paid into a blocked account. For the OASI as well as in the pension fund, the pension is reduced if you want to retire before the normal retirement age.

For the professionally active population was 12 years after entry into force of the AVS in 1948, the Disability Insurance (DI ) created. It pays benefits when the earning capacity for health reasons is severely limited or rendered impossible and has the inclusion in a self-determined professional and social life to the goal.