BaFin

Topic Occupational retirement provision The occupational retirement provision system in Germany

Institutions for Occupational Retirement Provision (IORPs)

Occupational retirement provision (ORP) is the promise of retirement and disability benefits or benefits for surviving dependants made by an employer to its employees. As the Second Pillar of retirement provision, the ORP represents, together with personal pension schemes as the Third Pillar, a supplement to statutory pension insurance (the First Pillar of retirement provision).

The ORP’s main legal basis is the Occupational Pensions Act (Betriebsrentengesetz – BetrAVG). The Act governs commitment types, forms of financing and the vehicles for implementing the ORP. Various supervisory arrangements also apply in part for different methods of implementation. Employee claims arising from the ORP are protected by multi-level guarantee schemes, depending on the employers’ commitment and the method of implementation.

updated on: 03.07.2018

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Publications on this topic

Stress test­ing: In­sti­tu­tions for oc­cu­pa­tion­al re­tire­ment pro­vi­sion: EIOPA pub­lish­es stress test re­port

The European Insurance and Occupational Pensions Authority EIOPA has published its report on the results of the 2017 EU-wide stress test exercise of institutions for occupational retirement provision (IORPs). In Germany, IORPs include Pensionskassen and Pensionsfonds.

Oc­cu­pa­tion­al pen­sions - Act on the pure de­fined-con­tri­bu­tion scheme passed

On 7 July, the Bundesrat approved the Act to Strengthen Occupational Pensions (Betriebsrentenstärkungsgesetz – BRSG – only available in German). The BRSG creates the opportunity to allow pure defined-contribution schemes in the field of occupational retirement provision. The act will come into force on 1 January 2018. In addition, the act includes changes to labour, social and tax law, which, …

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