What happens to my company pension if I get a reduced earning capacity pension?
In short
What happens to my company pension if I get a reduced earning capacity pension (Erwerbsminderungsrente)? It only pays now if your promise includes an invalidity benefit. Otherwise your right stays until retirement age, without new contributions once your salary stops. The state pension is not reduced by the company pension, but health and care contributions apply.
Limits and figures for a company pension alongside a reduced earning capacity pension, 2026.
Example
Typical range
Earnings limit, full reduction
EUR 20,763.75 a year
Earnings limit, partial reduction, at least
EUR 41,527.50 a year
Offset of the company pension
EUR 0
Health insurance allowance for pension income
EUR 197.75 a month
Deadline to resume a direct insurance
3 months after the unpaid period ends
Limits under Social Code VI and V with the 2026 reference value of EUR 3,955.
Whether and when your company pension pays on invalidity is in your contract documents.
Worked example
Employee, 52, full reduction, direct insurance with disability add-on
Example figures to show the deductions.
State reduced earning capacity pension
EUR 1,100
Disability pension from the direct insurance
EUR 500
Cut to the state pension
EUR 0
Part of the company pension subject to health insurance
500 minus 197.75 = EUR 302.25
Direct insurance contributions
covered by the premium waiver
Both pensions run side by side. Health insurance is due on EUR 302.25 of the company pension, care insurance on the full EUR 500 because the threshold is exceeded.
First question: is there an invalidity benefit?
A company pension can cover old age, invalidity and survivors, but it does not have to. Whether you get money from your company pension now depends only on whether your promise includes a benefit for invalidity.
If it does not, the company pension only pays from the retirement age in your contract. Under German law you can claim an early old age benefit only if you draw a state old age pension. A reduced earning capacity pension is not an old age pension.
How the provider checks your reduced earning capacity
Your contract defines what triggers the invalidity benefit. Some promises follow the decision of the state pension insurance, others use their own definition, such as an occupational disability add-on in a direct insurance.
Design
When it pays
What to check
Linked to the state reduced earning capacity pension
with the pension decision
partial or full reduction?
Occupational disability add-on
after the insurer's own assessment
percentage and job referral rules in the terms
No invalidity benefit
only from retirement age
no premium waiver either
Your state pension is not reduced
Additional earnings on a reduced earning capacity pension are wages, self-employed income and comparable income, plus some benefits such as sick pay for partial reduction. A company pension is not on that list, so it does not reduce your state pension.
Wages from part-time work have limits: with full reduction up to EUR 20,763.75 a year are free in 2026, with partial reduction at least EUR 41,527.50.
What happens to your contributions
Salary conversion (Entgeltumwandlung) needs a salary. If you no longer receive pay because of your reduced earning capacity, no contributions flow and the contract continues paid-up. An occupational disability add-on with premium waiver keeps paying the contributions.
If your employment continues without pay and a direct insurance from salary conversion was made paid-up for that reason, you can ask within three months after that period ends for it to continue on the old terms.
Health insurance and tax on the invalidity pension
A company pension paid because of reduced earning capacity counts as pension income for health insurance, just like an old age company pension. Compulsory members have an allowance of EUR 197.75 a month in 2026, full contributions apply to the rest.
For tax, the invalidity benefit is treated like any company pension. Check with a tax adviser whether your state pension and the company pension together become taxable.
When you reach retirement age
The reduced earning capacity pension is paid at most until the standard retirement age, then the old age pension follows. From then on at the latest you can claim the old age benefit of your company pension if no invalidity benefit was paid.
You have to apply for the company pension yourself. The pension decision does not reach your provider on its own.
Step by step
Check your promise and policy for an invalidity benefit.
With a disability add-on, claim from the insurer, regardless of the state decision.
Send the state pension decision to the provider if the promise is linked to it.
When returning to work, ask within three months for the direct insurance to continue.
Tell your health insurer about the company pension.
Checklist
Invalidity benefit included or not
Definition: reduced earning capacity or occupational disability
Premium waiver included
Three month deadline in your calendar
Earnings from work below the limit
Common mistakes
Assuming the company pension is deducted from the state pension
Not claiming the disability add-on while the state is still deciding
Asking for the old age benefit early without the promise allowing it
Missing the deadline to resume the direct insurance
Questions and answers
Frequently asked
Can I get my company pension early because of reduced earning capacity?
Only if your promise has an invalidity benefit.
The old age benefit can be claimed early only with a state old age pension.
Is the company pension offset against the reduced earning capacity pension?
No.
Additional earnings are mainly wages and work income, a company pension is not one of them.
What happens to my salary conversion during the reduced earning capacity pension?
Without pay there is no conversion, the contract continues paid-up.
With a premium waiver the insurer keeps paying the contributions.
Does the company pension pay for a temporary reduced earning capacity pension?
That depends on the definition in your contract.
If it is linked to the state decision, it may follow its time limit.
Do I pay health insurance on an invalidity company pension?
Yes, it counts as pension income.
Compulsory members have an allowance of EUR 197.75 a month in 2026.
What if I can work again?
The invalidity benefit then ends under your contract rules.
A direct insurance made paid-up can be resumed on old terms within three months.
