The pension of civil servants consists of the pensionable service and the pensionable salaries together.
Periods of service that are eligible for pensions are periods in civil service that exist without reasons for exclusion, such as leave of absence without official pay or culpable absence from work.
The pensionable salary is generally the salary from the last two years before retirement.
The fear of poverty in old age is high for many because of the low pension amounts. Civil servants, on the other hand, are in a much better position after retirement than the rest of the population. The average pension for civil servants is currently 65.6 percent of the last salary, according to a response from the federal government to a request from the Left Party. The pension level, i.e. the amount of the statutory pension, is currently 48 percent in Germany. But how is the amount of civil servants’ pensions calculated?
Who gets a pension?
A pension, also called a retirement pension, is given to civil servants, judges, professional soldiers and some other employees in a public service when they reach retirement age. The retirement age depends on the year of birth and increases gradually from 65 for people before 1947 to 67 for people after 1964. Civil servants can apply to retire after they have reached the age of 63 at the earliest, but then have to accept deductions. In addition, there must be a minimum service period of five years. Officials who worked for the fire brigade, police or prison do not have to accept any deductions for early retirement from the age of 63.
How is the pension for civil servants calculated?
In order to calculate the pension rate and thus the pension of civil servants, two variables are necessary. This includes the pensionable servicefrom which the pension rate is derived, and the pensionable salaries.
The formula for the pension rate is: Pensionable years of service x 1.79375 = pension rate
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What is considered pensionable service?
Periods of service that are eligible for pensions are periods in civil service that exist without reasons for exclusion, such as leave of absence without official pay or culpable absence from work. Part-time employment is also pensionable. Military, substitute or previous service periods can also be taken into account. You can find out more here: Are times before the appointment to the civil service accounted for?
Pensionable service establishes the pension rate, which increases by 1.79375 percent for each full-time year of service limited to a maximum of 71.75 percent is. 40 full-time pensionable years of service are required to attain the maximum rate. Career soldiers only achieve a service period of 40 years in exceptional cases and receive a percentage supplement to their pension rate of up to 12.55625 percent, career officers with the age limit of 41 years up to 16.86131 percent, as the Bundeswehr writes.
What are pensionable salaries?
The pensionable salary is generally the salary from the last two years before retirement. This includes the Level 1 family allowance and, in some cases, other allowances.
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Sample calculation for a civil servant pension
According to the formula pensionable service x 1.79375 = pension rate the following sample calculation results: With exactly 38 years of full service after reaching the age limit of 67 years, the pension rate is 68.16 percent. This is deducted from the one hundred pensionable salaries. The amount of the pensionable salary depends on the salary group and the marital status. In 2021, employees in medium and low-level jobs received an average pension of EUR 2,318. In the higher service, the amount was 3339 euros, in the higher service even 4973 euros.
Do civil servants have to pay taxes on their pension?
The pension benefits of civil servants are also subject to full taxation as income from non-self-employed work. However, there is a relative pension allowance that can amount to a maximum of 3000 euros plus smaller surcharges.
What if civil servants retire earlier?
The pension (note, not the pension rate) is reduced by 3.6 percent for each year that a civil servant retires before the applicable retirement age. The pension can be reduced by a maximum pension deduction of 10.8 percent, or 14.4 percent in the case of early retirement from the age of 63.
How high is the minimum pension for the civil servant pension?
The statutory minimum pension ensures the subsistence level for civil servants, like this Federal Ministry of Labor and Social Affairs writes. After five years of service, civil servants are entitled to a minimum pension. The pension rate for the minimum pension is 35 percent in the so-called office-dependent minimum pension and 65 percent in the so-called office-independent minimum pension of salary group A4.
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