When a company wants to retain good employees, that's when the benefits come into play — a company pension plan (bAV) is definitely one of them. With the bAV, every employee can build up a financial cushion and supplement their pension.
But how does bAV work?
The company pension scheme (bAV) is a savings plan that the employer must offer. Employers and employees jointly contribute to the employee's retirement plan through salary conversion. The employee deducts the savings contribution from his gross salary and thus saves taxes and social security contributions. It is up to the employee how much of his gross income to company pension plans is up to him. Up to a monthly contribution of 292 euros (as of 2023), the investment is free of social security contributions for employees.
Good to know: The government savings recommendation is between 5 and 8 percent of net income.
The employer subsidy is at least 15 percent. With a subsidy of around 20-25 percent, the bAV is cost-neutral for the employer. However, even higher subsidies increase the attractiveness of the employer and thus the financial cushion for the employee.
A major advantage for employees: The minimum amount and duration of pension payments are certain, as the Occupational Pensions Act guarantees the payment of the pension. The workload for the employee remains low, as the employer largely takes over the administration of the contracts.
In most cases, employees and employers associate bAV with annoying paperwork. But that doesn't have to be the case, because there are already sensible alternatives which make working life easier for HR managers and thus make bAV a real benefit.
One of them is our partner Degura. The start-up has understood the requirements of modern benefit solutions and is taking the digital management and optimization of bAV to a new level with the Degura Pension Cloud:
- Seamless integration: connection to all HR management systems with a free API connection.
- Digital administration: All BAV processes are digitally, transparently and seamlessly documented.
- Transparent advice: Always an overview of all important information about advice and contracts.
- 24/7 availability: Pension Cloud is always just a mouse click away. No matter when, no matter where.
- Uniform pension system: Access to an optimal pension solution, as Degura is independent of insurers.
- Maximum data protection: State-of-the-art IT security concept and 100 percent GDPR-compliant.
Thanks to the Degura Pension Cloud, annoying paperwork for HR professionals and employees is a thing of the past.
By digitally managing and optimising company pension plans, the Degura Pension Cloud can make an important contribution to corporate success, ESG criteria and employee satisfaction. In addition, employee loyalty can be increased through a great benefit and employees receive real added value.
About Degura
Founded in Berlin in 2018, is Degura Today, an HR-tech company that has not only developed a user-friendly cloud for company pension plans (bAV). At the same time, they transform the most popular benefit and the entire bAV process and digitally connect employees, employers and insurance companies with each other.
