The Flex­ible Pen­sion

On October 21, 2016, the German Bundestag passed the "Law to make the transition from working life to retirement more flexible and to strengthen prevention and rehabilitation in working life" (Flexirentengesetz). The aim is to make the transition from working life to retirement more flexible and at the same time make it more attractive to continue working beyond the regular age limit.

Among other things, recipients of a retirement pension can earn more flexibly before reaching the normal retirement age. After reaching the normal retirement age, continued work increases pension benefits.

Depending on the year of birth, insured persons are entitled to the regular retirement pension between the ages of 65 and 67.

Ef­fects on the em­ploy­ment re­la­tion­ship

According to the collective bargaining regulations of the TV-L, the employment of an employee at the University of Paderborn ends without notice (= automatically) at the end of the month in which the employee has reached the statutory age for the standard retirement pension.

Pursuant to § 41 sentence 3 of the Social Security Code VI (SGB VI), the parties to the employment contract can, by mutual agreement, postpone this “automatic” time to terminate the employment relationship and continue the employment relationship unchanged - if necessary, several times. A new employment contract is not necessary. Vested rights achieved during employment will remain unchanged.

However, a prerequisite is a "mutually agreed" regulation, i.e. the division where an employee works must also agree to the employee continuing to work beyond the regular retirement date.

What do I have to con­sider if I want to work longer?

If you are considering taking advantage of the so-called "flexi pension" and want to work longer, please proceed as follows:

1. Find out from your pension insurance company and the VBL about your pension entitlements and be sure to get personal advice. You can find initial information e.g. on the website of the Deutschen Rentenversicherung or the VBL.

There is personal advice e.g. in Paderborn at the:
Pension advice center of the Deutschen Rentenversicherung,

Kamp 31 in Paderborn
Telephone: 05251 / 1068-0;
For an Appointment: 0521 / 5254-0

The contact information for the VBL can be found here.

2. A visit to a tax advisor you trust will be beneficial to clarify which tax deductions you can expect in the event of a pension and whether a later start of the pension may be less attractive in terms of taxes.

3. Since further employment can only be carried out by mutual agreement, please discuss with your supervisors in advance to what extent and, if necessary, how long further employment will be approved and welcomed. The division itself must also clarify how further employment is to be financed.

4. If all of this has been mutual agreed, submit a brief informal application and forward it to the personnel department via official channels. We would also be happy to assist you with the wording prior to official submission.

Please note that postponing the retirement date must take place during the ongoing employment relationship. In order to meet this requirement, we need your application at least eight weeks prior to the pension age being reached.