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What happens to my company pension when I change jobs?

In short

What happens to my company pension when I change jobs? Money from your own salary conversion is yours at once. Pure employer contributions stay yours once the promise has run three years and you are at least 21. Within one year you can take the value to your new employer, leave the contract paid up or keep paying privately.

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What it costs

German limits and deadlines when changing jobs, as of 2026.

Example	Typical range
Highest transfer value with a legal right	101,400 euros
Deadline to request a transfer	1 year after the job ends
Cash out without consent, monthly pension	up to 59.33 euros
Cash out without consent, capital	up to 7,119 euros
Restart after a period without pay	within 3 months

Limits under the Company Pensions Act and Insurance Contract Act as amended by the second Betriebsrentenstärkungsgesetz.

Whether a transfer costs anything depends on the provider; we check that case by case.

Worked example

Eight years of Direktversicherung, moving to a new employer

How to check which routes are open to you.

Conversion 150 euros plus 15 percent top up	172.50 euros a month
Paid in over eight years	16,560 euros
Transfer value on the statement, example	17,000 euros
Below 101,400 euros?	yes, right to transfer
Above 7,119 euros?	yes, no cash out without your consent

You can choose. If the old contract has better guarantees than the new employer's offer, have it continued. Otherwise transfer the value within one year.

What you keep

Anything you paid from your own gross salary is yours from the first euro, in German law it is called unverfallbar. The same goes for the mandatory 15 percent your employer added on top.

A pension paid by the employer alone has a waiting period: the promise must have existed for at least three years when you leave, and you must be 21. Otherwise this part lapses.

So you rarely lose anything. The real question is which of the following routes is best for your contract.

Your four options

Which route fits depends on whether your new employer offers a company pension, how good your old contract is and whether you want to keep saving.

Route	Advantage	Drawback
Transfer to the new employer	tax relief continues, one contract instead of many	new contract may have worse terms
New employer continues your old contract	old guaranteed rate and terms stay	new employer must agree
Make it paid up	no effort, money stays invested	admin costs continue, pension stays small
Keep paying privately	contract stays alive	contributions from net pay, no tax or social charge saving

Transfer: your right and its limits

Within one year after your old job ends you can demand that the value of your entitlement is transferred to your new employer. The new employer must then give you an equivalent promise.

The right applies up to a transfer value of 101,400 euros in 2026 and only to Direktversicherung, Pensionskasse and Pensionsfonds. A Direktzusage or Unterstützungskasse can only move if both employers agree.

Many providers have agreements not to charge new acquisition costs on transfers. Ask in writing beforehand. An old contract with a high guaranteed rate is often worth more than a new one, then continuing it with the new employer beats a transfer.

If your old employer wants to cash you out

Small entitlements may be paid out by the old employer without your consent. Since 2026 the limit is a later monthly pension of 59.33 euros or a capital value of 7,119 euros.

If you claim your right to transfer, such a cash out is excluded. If you want the transfer, ask for it in writing early.

A cash out is taxable and added to your income for that year. Check whether transfer or continuation brings more.

Gaps, self employment and leaving Germany

If you have a gap without pay between two jobs, a Direktversicherung usually rests paid up. Since 1 July 2026 you can ask within three months after a period without pay to continue on the old terms, without a new health check.

If you take over the contract and pay privately, you become the policyholder. The part built from those private payments is usually free of health insurance contributions in retirement.

Moving abroad does not cost you your claim. German law does not provide for a transfer into a foreign system, so the contract usually rests in Germany and pays out at pension age.

Step by step

Before you move, dig out the latest statement and the policy terms.
Ask your new employer which vehicle and top up he offers.
Check whether the new employer would continue your old contract.
Ask the provider in writing about transfer costs.
Decide within one year after leaving and request it in writing.
After the move, check the contract has been switched to the new employer.

Checklist

Vehicle of the old contract known
Transfer value and guaranteed rate noted
One year deadline in your calendar
Transfer costs confirmed in writing
Top up at the new employer clarified
Three month deadline noted for any gap without pay

Common mistakes

Letting the one year deadline pass
Transferring an old contract with a high guaranteed rate and losing the guarantee
Forgetting a paid up contract while costs keep running
Agreeing to a cash out without thinking of the tax

Questions and answers

Frequently asked

Do I lose my company pension if I resign?

Not what you paid in yourself. Pure employer contributions only if the promise ran less than three years or you are under 21.

Must my new employer take over my contract?

Not the old contract itself. On request he must accept the transfer value and give you an equivalent promise.

Can I cash out my company pension when I change jobs?

Usually not. A cash out is only possible for small entitlements and is taxable.

What if I become self employed?

You can make the contract paid up or keep paying privately. The tax and social charge saving then ends.

What if my new employer has no company pension scheme?

Every employer must allow salary conversion. He may choose the vehicle, but must still accept a transfer.

What if I move back to my home country?

The entitlement stays yours and is paid at pension age, also abroad. Ask the provider about payment to a foreign account and tax there.

Sources

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