How does the supplementary pension in the German public sector work?
In short
How does the supplementary pension in the German public sector work? Employees on a public sector pay agreement are enrolled automatically, often with the VBL. In the western tariff area 7.30 percent of pay goes into the levy, of which you pay 1.81 percent. Each year earns pension points, and each point pays 4 euros a month later. You qualify after 60 months.
Contribution rates and key figures of the German public sector supplementary pension, 2026.
Example
Typical range
Levy in the western tariff area, total
7.30 percent of pay
Your share in the west
1.81 percent of pay
Your share in the east, funded part
4.25 percent of pay
Value of one pension point
4 euros monthly pension
Voluntary extra insurance with the fund
from 24.72 euros a month
Reduction for early retirement
0.3 percent per month, at most 10.8 percent
Figures as published by the VBL and in the laws listed, October 2026.
Municipal and church funds may set their own levy.
The example follows the points formula.
Worked example
Administrative employee, 30, 3,500 euros a month, western tariff area
What a single year in the public sector adds to the supplementary pension, based on 42,000 euros annual pay.
Annual pay divided by 12,000 euros
3.5
Age factor at 30
2.0
Pension points for this year
7.0
Pension from this year (7.0 times 4 euros)
28 euros a month
Your own share this year (1.81 percent)
about 760 euros
Every year adds something, but less as you get older. If she stays until 64 on the same pay, roughly 630 euros of supplementary pension a month build up. The annual statement shows the exact figure.
Who is covered by the supplementary pension
The supplementary pension (Zusatzrente) in the German public sector is a company pension set by collective agreement. If you work for the federal government, a state, a municipality or many church and public bodies under a pay agreement, your employer registers you. You do not sign anything and cannot opt out.
Civil servants (Beamte) are not included, they get a civil service pension instead. The largest fund is the VBL, and there are municipal and church supplementary pension funds with similar rules. Your payslip and the annual statement show which fund you belong to.
How the supplementary pension is financed
In the western tariff area the VBL supplementary pension is pay as you go. Since 2023 the levy is 6.90 percent of pensionable pay, plus an employee contribution of 0.40 percent. Your share of 1.81 percent in total is deducted straight from your salary.
In the eastern tariff area most money is invested: a 6.25 percent contribution, of which 4.25 percent comes from you, plus an employer levy of 1.06 percent, rising to 2.59 percent in 2027. What you pay does not change the pension amount, which follows the points model only.
Tariff area
Employer
You
Total
West, levy
5.49 percent
1.41 percent plus 0.40 percent
7.30 percent
East, funded
2.00 percent
2.00 percent plus 2.25 percent
6.25 percent
East, levy
1.06 percent, 2.59 percent from 2027
nothing
1.06 percent
The points model: how your pension builds up
Each year the fund calculates: annual pay divided by 12,000 euros, times an age factor. The factor falls with age: 2.4 at 25, 2.0 at 30, 1.5 at 40 and 0.8 from 64. Early years therefore count much more in the supplementary pension.
When you retire, all points are added up and multiplied by 4 euros, giving your monthly pension. Rule of thumb: each year adds about 0.4 percent of your monthly salary times the age factor. Maternity protection and parental leave also earn points, and points are added if you become unable to work before 60.
When the supplementary pension is paid
The supplementary pension starts with your state pension, and only if that is paid in full. The same applies to disability: it pays once the German pension insurance recognises reduced earning capacity. With partial reduction you get half.
If you retire before the standard age, the fund cuts the pension by 0.3 percent per month, at most 10.8 percent. Surviving spouses receive 55 or 60 percent depending on marriage date and age. Pensions in payment rise by 1 percent every 1 July.
Moving to a private employer or abroad
There is a qualifying period of 60 months with contributions. Under the Company Pensions Act, however, your entitlement is kept once the promise has existed for three years and you are at least 21. The points then stay with the fund until retirement.
If you leave earlier, only your own contributions can be refunded, and the employer levy is lost. If you are thinking of leaving Germany or the public sector after two years, check whether a few more months would secure your entitlement. More on our page about company pensions when changing jobs.
Gaps in the supplementary pension and how to fill them
The supplementary pension does not replace disability insurance (Berufsunfähigkeitsversicherung): it pays only once the pension insurance accepts reduced earning capacity, and then only part. In retirement you pay health and long term care contributions on it, and it is taxable.
If you want more, you can save voluntarily with the public sector fund from 24.72 euros a month, or convert up to 4 percent of the contribution ceiling of your salary. Whether that beats a private plan depends on costs, guarantees and your tax rate. Norman Nammert acts as an insurance broker; the commission is paid by the insurer.
Step by step
Find the annual statement of your supplementary pension fund and check your points.
Use the fund calculator to estimate your pension.
Before changing jobs, check whether three years of promise are reached.
Work out the gap to the income you want in retirement.
Compare voluntary extra insurance, salary conversion and private savings.
Checklist
Fund and tariff area known
Pension points complete in the statement
Three years reached before leaving
Early retirement reduction taken into account
Health insurance contributions in retirement planned
Ability to work insured separately
Common mistakes
Expecting the old final salary scheme and overestimating the pension
Leaving after two years and losing the employer levy
Treating the supplementary pension as disability cover
Forgetting health insurance contributions in retirement
Questions and answers
Frequently asked
Do I have to sign up for the supplementary pension myself?
No.
Your employer registers you with the fund and the contribution is taken from your salary.
How much supplementary pension will I get?
Your total pension points times 4 euros a month.
The annual statement shows your points, and the fund offers a calculator.
Do civil servants get the supplementary pension?
No.
Civil servants (Beamte) receive a civil service pension;
the supplementary pension is for employees under a pay agreement.
What happens if I leave Germany?
After three years of promise and from age 21 your entitlement remains.
Before that, only your own contributions can be refunded.
Is the supplementary pension taxed?
Yes.
The employer levy is tax free up to 4 percent of the contribution ceiling,
and the later pension is taxed.
Health and care contributions apply too.
Is voluntary extra insurance worth it?
Often, if you save tax and social contributions while paying in and costs are low.
Compare guarantees, costs and flexibility with private offers.
