Many Members wondered why the level of annual contributions after reaching the age of 55 is limited, even though the financial resources would allow higher contributions to be paid at this stage of life. The reason is the retirement of contributions irrespective of age and the associated personal contribution limit (§ 21 (3) sentence 1 SSÄV). However, their level may be influenced by voluntary overpayments.
SÄV shall finance itself in accordance with the open cover plan procedure. A special feature of this procedure is retirement regardless of age: All contributions paid to the SÄV in the course of a working life generate the same accrual value and are remunerated at the same level, regardless of the age of payment.
However, this also means that contributions paid shortly before retirement (after the age of 50) have a systemically higher contribution efficiency. The resulting ‘gap’ is regularly filled by apportionment. However, in order to protect the solidarity community from a disproportionate additional burden, the period from the end of the calendar year following the age of 55 was subject to a personal contribution ceiling.
The statutory calculation for determining the personal contribution ceiling shall be the fixed contributions and the overall maximum annual contribution for the last five years before reaching the age of 56. Additional voluntary additional payments may increase the personal contribution ceiling.
Under Paragraph 6 (1) (1) of SGB VI, compulsory contributions from employees, fixed contributions such as the minimum contribution or half the minimum contribution and contributions from the receipt of replacement income are not limited by the personal contribution ceiling.
CONCLUSION: Cross in the calendar! Between the age of 50 and 55, Members may influence the level of their personal contribution ceiling by means of flexible co-payments. You can best discuss with our staff what specific opportunities you can offer in your individual situation.