Information in English

The pension scheme is the professional obligation pension institution for tax consultants in the federal states of North Rhine-Westphalia and Thuringia, which has joined the pension scheme by state treaty. It is one of the first pillars of old-age provision in Germany, alongside the statutory pension scheme and the civil service pension. The pension scheme grants its members old-age and occupational disability pension as well as subsidies for rehabilitation. Spouses, registered partners and children receive survivors' pension and a death grant.

The pension scheme is a public law corporation. It is administered by its members, who elect a Representatives' Meeting from among themselves, which in turn elects the Executive Board, consisting of 5 members.

By law, every tax consultant, tax representative or authorised representative of a tax consultancy company within the meaning of § 74 section (2) StBerG who is a member of a chamber of tax consultants in North Rhine-Westphalia or, pursuant to the state treaty of 2004, in the chamber of tax consultants in Thuringia, is a member of the pension scheme.

The pension scheme applies the modified open cover plan procedure. This takes into account the average length of stay of the contributions. This ensures the most accurate possible equivalence between contributions and prospective pension entitlement. The modified open cover plan procedure also contains certain solidarity shares with which other solidarity benefits such as the occupational disability and survivors' pensions can be financed.

As a former tax officer, you have the option of having your period of service re-insured with the pension scheme if you have not yet left the civil service for more than one year at the time of your appointment as a tax consultant and have submitted a corresponding application within this one-year period. 

Through the appointment as an auditor, you become an obligatory member of the pension scheme for auditors and certified accountants in North Rhine-Westphalia by law. The contributions paid to the pension scheme of tax consultants in North Rhine-Westphalia are transferred to the pension scheme of auditors and certified accountants in North Rhine-Westphalia, unless you object to the transfer within a 6-month cut-off period. In this case, the contributions remain with the pension scheme of tax consultants in North Rhine-Westphalia. You also have the option of continuing your membership of the pension scheme of tax consultants in North Rhine-Westphalia.

Please apply the exemption from the obligation to pay contributions on our initial entry form (on this form you can apply for a complete or partial exemption). Also an informal application is possible. In addition, you have to submit an appropriate proof (e.g. a current certificate from the other pension scheme confirming compulsory membership and payment of contributions).

If you are appointed as a tax consultant in another federal state, your membership of the local professional pension scheme ends and you become a compulsory member of the professional pension scheme there. In principle, your contributions remain in the pension scheme of tax consultants NRW; you have acquired a pension entitlement from this. Under certain conditions, the contributions can be transferred to the other professional pension scheme, if a transitional agreement has been concluded between the transferring and receiving professional pension scheme.

In contrast to the statutory pension insurance and private pension & life insurance, the occupational pension schemes only include members of certain occupational groups to a limited extent on a regional basis. The regulations of the individual pension schemes can be tailored to the specific pension requirements of the respective community of insured persons. Within the framework of self-administration, the members themselves, through their elected representatives, decide on the basic principles of membership, contributions and benefit rights.

In contrast to the statutory pension insurance, members are entitled to benefits immediately on payment of their first contribution without a waiting period. Income from other sources of income is not taken into account when calculating benefits. To finance the benefits, capital-forming methods are used which are tailored to the specific requirements of the respective professional pension scheme. It is financed without any state subsidies.

In contrast to private pension & life insurance policies, compulsory membership is created by law without a separate contract being concluded; the legal relationship between the member and the professional pension scheme is of a public-law nature. A health examination is generally not required at the start of the membership. The contribution is based on professional income and covers the risk of occupational disability as well as survivors' benefits without additional contributions. An increased risk does not lead to a higher contribution - there is no exclusion of liability for certain risks (solidarity component). The professional pension schemes are non-profit making institutions. Benefits are not reduced by commission payments, advertising measures, internal acquisition costs, taxes (in particular corporate income tax) or reinsurance contributions. In addition, the pension schemes are subject to state legal and insurance supervision together with an annual audit.

The benefits provided by the professional pension scheme are no less secure than those provided by the German statutory pension insurance or the private insurance industry. All pension systems are only as secure as the general development of the respective national economy. In addition, however, several additional safeguards are built into the law and the statutes to ensure that the benefits of the professional pension scheme can be met at all times.

For example, the pension scheme is not only constantly monitored by the Executive Board and the Representatives' Meeting, but the state legal and insurance supervisory authority also exercise considerable control over the security of the professional pension scheme. Furthermore, the professional pension scheme is also audited annually by an auditor, who also monitors and checks in particular the risks related to the pension scheme in the implementation and administration of the pension scheme. Finally, the actuary is responsible for constantly reviewing the actuarial bases for the calculation of benefits and, if necessary, making proposals to remedy any undesirable developments. In this way a professional pension scheme is secured in several ways.

In principle, the contribution to the professional pension scheme corresponds to the maximum contribution to the statutory pension insurance (= regular compulsory contribution). In accordance with the statutes, there is also the possibility to pay income-related contributions.

Regardless of your income, there is a minimum contribution to pay which is 1/10 of the regular compulsory contribution.

The member itself, not the employer, is always liable to pay contributions. In principle, it is possible that membership contributions are paid by the employer to the pension scheme. In case of occurring irregularities in the payment of contributions, the member will always be liable.

From this point of view, as well as for accounting reasons, the professional pension scheme recommends that the employer pays the employee & employer contributions to the member and that the member then has the total contribution collected by the pension scheme via SEPA direct debit.

Employed as well as self-employed members have the possibility to apply for an income-related contribution or the standard compulsory contribution (10/10). If you receive income below the monthly contribution assessment ceiling for the statutory pension insurance, you can apply for an income-based assessment.

Members who are exempted from the obligation to be insured in the statutory pension insurance as employed tax consultants pay at least contributions to the professional pension scheme in the amount as they have to pay to the German pension insurance. The employer pays half of this amount. Contributions are determined on the basis of the contribution collection reports to be submitted by the employer in electronic form on a monthly basis.

In the case of newly appointed self-employed members, a conscientious estimation of income is required for the first income-related determination. When taking up an exclusively self-employed work for the first time, it is possible to apply for a reduction of the contribution to half of the income-related compulsory contribution or to 5/10 of the regular compulsory contribution for a period of 5 years. This application can only be made retroactively within 6 months after the start of the self-employment. If the application is submitted later, the contribution reduction only applies from the date the application is received.

For members who are simultaneous employed and self-employed, an income-related assessment is made on the basis of the employer's submitted contribution collection reports for the employed activity and for income from self-employment on the basis of a submitted estimate, which is later reviewed on the basis of the income tax assessment. If the income from the employment already reaches the monthly contribution assessment ceiling for the statutory pension insurance, income from self-employment is not taken into account.

To simplify the administrative workload, we recommend issuing a SEPA direct debit mandate so that contributions can be collected either from you or from your employer. Before you grant us a direct debit mandate for your account, please clarify in advance whether your employer will pay the contributions to our professional pension scheme. The payment can be done by bank transfer or by direct debit mandate from the account of your employer. Should you have income from self-employment in addition to your income from employment, you can grant us a separate direct debit authorisation. If you or your employer pay the monthly contributions to us by bank transfer, please note that the payment is due on the 28th of the respective contribution month. Please note, that for all transfers the membership number to our professional pension scheme is necessary for proper accounting.

In principle, you as a member are the debtor of contributions. Therefore it is recommended, that your employer pays off his part of the contributions to the professional pension scheme directly to you and you transfer the entire part of the contributions to be paid by yourself or give us a direct debit mandate.

Each additional contribution paid has an increasing effect on the pension entitlement. Together with the compulsory contributions, additional contributions may not exceed 20/10 of the regular compulsory contribution.

According to the 2005 Retirement Income Act, contributions to pension schemes of the first pillar of the German pension system, including contributions to our professional pension scheme, can be deducted from taxes as special expenses to a certain extent. In this context, we ask for your understanding that our professional pension scheme is not allowed to give any advice on your tax situation.

The entitlements acquired in the statutory pension insurance remain there and are paid out as a pension when the benefit event occurs, provided the necessary conditions are met.

Please contact the responsible statutory pension insurance institution regarding the possibility of a refund of paid contributions to the statutory pension insurance.

There is no possibility for a direct transfer of contributions respectivley entitlements from the statutory pension insurance to the professional pension scheme.

The pension from the statutory pension insurance is not taking into account when receiving a pension from our professional pension scheme.

The pension scheme provides for the following types of benefits:

- Retirement pension
- Occupational disability pension
- Survivor's pension
- Transfer of contributions
- Capital compensation for widows/widowers on remarriage
- Death benefits

In addition, under certain conditions, the pension scheme may grant a contribution to the costs of necessary medical rehabilitation.

No, you provide for your pension yourself on the basis of your contributions; the benefits are financed by a funded scheme.

The decision is yours! The professional pension scheme covers full occupational disability (= 100%) in relation to the profession as a tax consultant. On the basis of medical reports, we check whether the member is temporarily or permanently unable to practice the profession of a tax consultant within the meaning of the professional code of conduct for health reasons. There is no reference to the exercise of other activities. There is also no crediting of other (pension) income. In the case of private occupational disability insurance, other conditions may apply when determining occupational disability. Please contact your private insurance provider for information on this.

Each year, the professional pension scheme sends its members a notice of entitlement with the calculation bases for the current calendar year, from which the pension entitlement achieved or to be expected if the same contributions continue to be paid is derived. There is no guaranteed pension level. A legally binding pension notice will be provided by retirement.

The professional pension scheme may grant a subsidy towards the costs of a particularly costly medical rehabilitation, provided that the ability to work as a tax consultant is endangered, reduced or excluded and this ability can probably be maintained, substantially improved or restored by a medical rehabilitation. A corresponding application must be submitted in writing early enough before the rehabilitation is initiated.

The professional pension scheme does not grant cost subsidies for occupational reintegration measures, recreational stays and medical aids of any kind (e.g. glasses, office chairs). Furthermore, a subsidy can only be granted if no other authority is primarily obliged to reimburse the benefit (e.g. statutory pension insurance or health insurance).

The subsidy towards the costs of a medical rehabilitation is a discretionary benefit paid by the pension scheme, to which no legal claim exists. A decision on the granting of the subsidy is made by the Executive Board after obtaining a medical opinion and taking all the circumstances of the individual case into account.

The exemption takes place from the beginning of membership in the chamber of tax consultants (date of appointment) or, in the case of an already existing membership, from the start of employment / change of employer, if this is applied for within 3 months (receipt of the application by the professional pension scheme is decisive).

Late application leads to an exemption from the statutory pension insurance obligation only from the date of receipt of the application by the professional pension scheme. In this case the member has to pay higher contributions as even for the period prior the exemption, contributions must be paid to both pension insurances, the German statutory pension insurance and the professional pension scheme. The minimum contribution (1/10) must be paid for this period to the professional pension scheme.

No; in any case, the application must be sent to the professional pension scheme because we have to confirm your membership to our professional pension scheme in the application form.

Until the German statutory pension insurance decides on the exemption from compulsory insurance there, your employer must continue to pay the pension insurance contributions to the statutory health insurance company responsible (collection point). Only when the exemption has been issued by the statutory pension insurance, your employer may pay the contributions to the professional pension scheme (even retroactively) from the date of exemption from compulsory insurance to the statutory pension insurance. A refund of the contributions paid to the collection point from the beginning of the exemption from the statutory pension insurance obligation takes place only on request. Your employer and you must submit this request jointly to the collection point.

If you receive unemployment benefits (Arbeitslosengeld I) you have to pay contributions.

An exemption from the statutory pension insurance obligation is not granted in favour of the professional pension scheme if you were already unemployed at the time of the appointment, so that you have to pay the minimum contribution of 1/10 from the beginning of membership. If you were already exempt from the statutory pension insurance before you became unemployed, however, this exemption remains in force and the agency for employment will pay the contributions to the professional pension scheme on request. 

When receiving unemployment benefit II (Arbeitslosengeld II)  there is the possibility for a complete exemption from the obligation to pay contributions upon application.