Your pension

Your pension at Fresenius

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Your direct insurance

Want a better pension? Here's how it works.

With the Fresenius Basic Plan, we lay the foundation for your company pension. You can also make provision yourself - with contributions to direct insurance. With direct insurance, you have the option of paying premiums from your gross salary. You gain from the tax benefits and saved social security contributions.

But, it gets even better. Whether you are employed on a tariff or non-tariff basis, you will receive a basic amount for your direct insurance from Fresenius, even without your own contributions. If you are paid according to a collective bargaining agreement, the Fresenius supplementary contribution is added. All you need to do is to take out direct insurance.

Overview of contributions

Basic amount

All tariff and non-tariff employees are entitled to a basic amount (“Entgelt­umwandlungs­grundbetrag”) of €478.56 per year from their seventh month of employment. Part-time employees receive a proportional amount. All you have to do is to sign the direct insurance application forms. The Insurance department will be happy to assist you with the application.

Fresenius supplementary contribution

If you are entitled to collective bargaining benefits, you will receive the Fresenius supplementary contribution in addition to the basic amount when you take out direct insurance. You can find further information here under "Contribution Levels". For companies in which the chemical industry collective agreement applies, the amount for full-time employees is €134.98. Together, with the basic amount, this is an additional €613.54 for your pension.

Personal contribution

To best provide for the standard of living you would like to have in retirement, it is recommended that you contribute as much as you can to build up your pension pot. With direct insurance, you can do this. You can make contributions from your current monthly salary and/or one-off payments, such as Christmas or holiday bonus. Non-tariff employees can also convert their variable into a personal contribution. Contributions come directly from your gross salary. No taxes are collected - and depending on the amount of your contribution - usually no social security contributions. Tax and social security are only deducted from your wage after your premiums have been deducted.

Additional supplementary contribution

Fresenius rewards personal initiative with additional supplementary contributions for employees who are entitled to collective bargaining benefits. For every €100 you contribute, the Fresenius supplementary contribution increases by a further €13 - up to a maximum bonus of €312 per year. You can then determine your total contribution using the table for the specified contribution levels on our download page.

Example

Tariff employee at Fresenius Medical Care; Contribution: €106.70 per month

 EUR

Basic amount

+

 EUR

Fresenius supplementary contribution

+

 EUR

Your own contribution

+

 EUR

Additional supplementary contribution

=

 EUR

Total annual contribution to direct insurance

How to save taxes today

If you pay your own contributions into direct insurance, you save taxes and social security contributions. This is because your contributions are deducted directly from gross salary. A total of €3,408 (2021) can be paid into direct insurance free of tax and social security contributions per year - including the basic amount and all Fresenius supplementary contributions. In addition, you can contribute a maximum of €1,800 tax-free from your own contributions.

Tax and social security are only deducted from your salary after your direct insurance premiums have been deducted. The deduction therefore reduces your taxable and contributory income. As a result, in net terms you do not pay the full contribution, but approximately half. Taxes and social insurance contributions only become payable upon payout.

Without contributionWith contribution

Without your contribution to direct insurance, the usual taxes and social security contributions are levied on your gross salary.

Your contribution reduces the taxable income. You therefore pay less tax and social security contributions. This is why your net salary is not reduced by the full contribution.

My contribution

Gross income

Net reduction

Net income

What happens with the money

01

Direct insurance

The basic amount, Fresenius supplementary contributions and your personal contributions are paid into direct insurance. This is a special type of life insurance. Fresenius has chosen Allianz as its partner. Thanks to a group contract, you benefit from particularly favourable conditions.

02

Investment strategy

You decide whether the investment of your contributions should be adventurous or cautious. In the “Perspective” pension concept, your contributions are invested in Allianz's guaranteed assets. The investment strategy is therefore less susceptible to fluctuations. The fund-based "InvestFlex" pension concept offers you higher returns due to its focus on investment in shares but is in turn more exposed to the opportunities and risks of the capital markets. Both pension concepts offer the guarantee that the total amount of contributions paid into the pension fund will be available at retirement.

03

Value growth

In both pension plans, you are guaranteed all contributions for retirement benefits at the start of retirement (guaranteed capital). Depending on the development of the capital market and your chosen investment strategy, you can also benefit from participating in the surpluses generated by the insurance company or the value gain of your fund-linked investment.

When is the pension paid out?

What is paid out?

Withdrawal options

Taxes on payout

Complete flexibility

When it comes to pension payouts, flexibility is very important. You have the flexibility to request payment from direct insurance between the ages of 62 and 75. Please note that the amount of the payment is reduced if the payment is made before reaching the standard age limit. The payout must be taxed in full. So, if you make use of the benefit while you are still working, your tax burden may increase.

What you get

You are immediately guaranteed all the contributions you have paid for your pension. Through participating in insurance surpluses and positive capital market development, your pension assets will continue to grow until you retire. In the event of death before the start of your pension, your surviving dependants receive the contributions you have paid for your retirement plus the payout from the profit participation or the current policy value for a fund-linked contract.

Suited to you

A lifelong pension or a lump sum payment? The choice is yours. There is a 10-year pension guarantee period. This means that if anything should happen to you within the first ten years after the start of your pension, the outstanding pension payments will be converted into a lifelong benefit and paid to your surviving dependants.

How it works

When paying in, you benefit from the tax advantage and the saved social security contributions. However, taxes and social security contributions apply to the payment of benefits. You then bear full contributions for health and nursing care insurance, including employer contributions, insofar as you are insured under statutory health insurance. However, you make no contributions to unemployment and pension insurance. The tax rate during retirement is, nevertheless, generally lower than during working life.

Do you have money to give away?

What to do now

You can apply to participate in direct insurance immediately after the start of your employment at Fresenius. You can pay your own contributions. To apply, send this form with your personal details to the Fresenius Insurance department by September 15th at the latest. You will then receive your personal insurance proposal. Happy? Then send in all completed documents by September 30th. Done - Fresenius takes care of the rest.

We will be happy to check whether your insurance can be transferred within a capital transfer to our group contract partner, Allianz Lebensversicherungs-AG, and continued there under the currently applicable conditions. To do this, please contact the insurance department shortly after joining the company to give us sufficient time for processing.
Alternatively, you can continue the contract privately and take out a new direct insurance policy under our group contract. The required deferred compensation amount for the payment of contributions must be established by September 30th of the current calendar year at the latest. A deviation from this deadline is only possible with a start date at Fresenius after this date; this does not apply to a possible new contract.

Are you about to retire? Please contact the Insurance Department to clarify which payment date is suitable for you and which payment option you wish to choose.

Things to keep in mind

You make a saving on social security contributions when paying in your own contributions from gross salary. This saving can lead to a reduction in statutory pension benefits. However, this potential reduction in statutory benefits is generally more than compensated for by the basic amount and the performance of the contributions in direct insurance.

As with most contracts, there are administrative costs payable to Allianz for participating in direct insurance. These are already accounted for and will not be invoiced separately. Due to the favourable terms of the group agreement, the costs are significantly lower compared to taking out private insurance.

The basic amount is an annual contribution to your direct insurance. In the first year of employment, this is paid proportionately by Fresenius, since the entitlement only comes into effect after seven months. In order to get the full annual premium, the missing sum may be retained in the first insurance year from your Christmas bonus. To prevent this, you can apply to participate in direct insurance from your second year of employment onwards.

 

Do you have further questions about direct insurance? You can find out more here.