GERMAN PENSION REFORM title: German Pension Reform (PY-DE) (SAP Library - Glossary)
GERMAN PENSION REFORM category: Germany (PY-DE)
GERMAN PENSION REFORM explained:
With this law, which came into force on January 1 2002, employers are obliged to offer their employees the chance to convert some employee contributions into private pension contributions. The state enforces this by either applying a particular tax and social insurance contribution exemption level, or applying flat rate taxation, or granting a bonus (the so-called Riester grant). The type of grant depends on the way the remuneration is converted (via pension fund or direct insurance).
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