Lifelong security – Company pension scheme

The company pension scheme is the most important element in the overall package of our social benefits. The German government’s current pension insurance report shows that working people will not be able to maintain their standard of living on the state pension.

Munich Re: Provision based on a modular system

As far back as 1923, Munich Re set up a smaller-sized mutual society, known today as the "Versorgungskasse" or pension fund. In the sense of the Insurance Control Act, it guarantees a company pension when members retire, if they become unfit to work, and – when they die – a pension for dependants. Staff whose salary exceeds the collective wage agreement tariff also enjoy a direct pension commitment that is financed entirely by the employer. All employees are covered by the company pension scheme should they become unfit to work.

On 1 October 1999, Munich Re introduced – as a further component in the company pension scheme –deferred compensation (DC), an arrangement by which a portion of an employee's income is set aside. This measure is financed by the employee: A portion of the gross salary is allocated to the pension. This reduces the amount of taxable income. At the same time, Munich Re grants a pension in the same amount, which is taxable by the beneficiary on payout. Every calendar month employees can decide how much of their salary they would like to set aside as deferred compensation.
At the end of November each year, recipients of (old age, occupational disability, widows’ or orphans’) pensions receive a Christmas bonus of 110% of their monthly annuity from the pension fund or from the direct pension commitment. We will keep paying these benefits for former employees as long as we possibly can.

Naturally, the ERGO Insurance Group also supports its staff in terms of pension provision. They may receive an employer subsidy to the company pension scheme; as a rule, the employer contributes two thirds and the employee one third. In addition, all members of staff are covered in the event of occupational disability, and provision has also been made for their dependants.

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