Germany - Insurance and retirement provisions

Description

KBV employs around 330 staff, for whom the new direct insurance contract to be concluded will be relevant. In addition, there are around 70 employees who are covered by an old pension scheme and who can only convert their remuneration voluntarily via direct insurance, and possibly around 160 employees of four subsidiaries (DSSG mbH, KV Telematik GmbH, Institut des Bewertungsausschusses GbR and Kooperationsgemeinschaft Mammographie GbR) who will decide separately on the conclusion of a new insurance contract (under the same contractual conditions as for the KBV). For all subsidiaries the accession to the new direct insurance contract to be concluded is expected to take place by 31.12.2020. The current annual premium volume is around EUR 770,000 (plus around EUR 100,000 for the subsidiaries, if applicable). Under certain circumstances, this contribution volume will change because, on the one hand, employees who do not carry out deferred compensation will be given the new option of choosing a cash payment of contributions and, on the other hand, higher employer contributions could be paid for some employees during the first years of insurance.the individual employer contribution amounts to 1.5% of the basic remuneration. If the employee performs deferred compensation of at least 2 % of his or her basic remuneration, the employer's contribution increases to 2.5 %. In addition, around 50 senior employees receive an employer's contribution of 4.5% of their basic remuneration. In addition, every employee can voluntarily convert remuneration without limitation. If possible, the employee should be able to decide on the amount of deferred compensation on a monthly basis. The conversion of remuneration is subsidized by the employer, if required by the BetrAVG. The contribution of an employee may therefore exceed 8 % of the BBG. The new direct insurance is to be based on a classical insurance tariff with guaranteed benefits on the basis of the current maximum actuarial interest rate. The following are to be insured- an old-age pension,- exemption from contributions in the event of occupational disability and an occupational disability pension equal to the old-age pension,- a collective spouse or partner pension equal to 60% of the old-age pension in the event of death before the start of the pension,- optionally (i.e. at the employee's request) a spouse or partner pension equal to 60% in the event of death after the start of the pension,- a half-orphan's or full-orphan's pension equal to 15% or 25% of the old-age pension, payable at age 18 or up to the age of 25 in the event of continued school or vocational training as well as physical or mental infirmity, in the event of death before the start of the pension,- a death grant of 35% of the contributions paid in, but no more than EUR 7,669, in the event of death before the start of the pension,- a death grant of EUR 5 per EUR 1 insured monthly pension, but no more than EUR 7.669, in the event of death after the start of the pension.the contributions should be paid monthly.if at the start of the pension there is an option for a pure old-age pension (i.e. without a survivor's pension), the pension guarantee period should, if possible, be completely cancelled or be as short as possible.the regular old-age pension should start at age 67. An early withdrawal of the old-age pension should be possible from age 62 (call phase).surpluses arising during the pension payment should be used to increase the current benefits annually.employees should be granted a lump-sum option.all benefits should be immediately (contractually) vested.the new insurance contract to be concluded is concluded for an unlimited period. Further details can be found in the tariff description (document 02) under point 1.2.The KBV reserves the right to make changes based on the results of the negotiations.

Opportunity closing date

17 January 2020

Value of contract

to be confirmed