German Occupational Pension Reform 2018 Impact on company pension schemes (DE)

The whitepaper provides an overview of the German occupational pension reform 2018 with regard to insurance-based financing vehicles and points out possible need for action for employers. To learn more, download the full whitepaper above. 

The Occupational Pensions Reinforcement Act (Betriebsrentenstärkungsgesetz, BRSG) was passed on 1 June 2017. It brings about a number of changes. The first change is the potential to set up pure defined contribution plans, where the only obligation for the employer is to pay contributions to the plan without being liable for future (minimum) benefit payments. Specific to this type of pension plan is that implementing such an arrangement is subject to collective bargaining agreements. Hence it is often referred to as the ‘Social Partner Model’. It is an open topic when the first pure defined contribution plans will be established and how they will be designed.

In addition to this new possibility, the BRSG introduces numerous other changes which become effective from the Act’s implementation date, 1 January 2018. These changes affect all employers, including those not bound by a collective bargaining agreement; they will affect both the establishment of new pension schemes and the design of existing ones. The changes will have a direct impact on the so-called ‘insurance-based’ or external financing vehicles (Direct Insurance, Pensionsfonds and Pensionskasse). There will also be implications for pension schemes provided directly by the employer (Direktzusage) or via a support fund (Unterstützungskasse).

In this paper, we provide an overview of the innovations the BRSG introduces to insurance-based financing vehicles; the effects they may have on your company’s pension schemes (bAV); and where you may need to take action.

About Aon Hewitt

Human Resources and Aon Hewitt – these two simply belong together. We are one of the leading consulting firms worldwide. In Germany, we develop practice-oriented and innovative solutions in the areas of occupational pension schemes, compensation and talent management. It is our goal to permanently add to our clients’ success. We reduce complexity and come up with the best possible individual solution for them. Our clients value us as a strategic and implementation-focused partner with an outstanding expertise. Aon Hewitt operates worldwide with almost 15,000 employees in 50 countries. About 450 of them work in our German offices in Hamburg, Mülheim an der Ruhr, Munich, Stuttgart, and Wiesbaden.

Further information about Aon Hewitt is available on

About Aon

Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries – thereof about 1,700 colleagues at eight locations in Germany – empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

© Aon Hewitt GmbH 2018. All rights reserved
This document is based upon information available to us at the date of this document and takes no account of subsequent developments. In preparing this document we may have relied upon data supplied to us by third parties and therefore no warranty or guarantee of accuracy or completeness is provided. We cannot be held accountable for any error, omission or misrepresentation of any data provided to us by any third party. This document is not intended by us to form a basis of any decision by any third party to do or omit to do anything.

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