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Retirement Scheme for Civil Servants: Civil Servants Pension

Definition, Explanation

Civil servants receive a retirement pay in form of a civil servants pension. The civil servants pension is often called „Ruhegehalt“or „Beamtenversorgung” (retirement pay). Civil servants receive their pension when they reach retirement age. This means, when a civil servant

• has reached the legal age of 65
• reaches a certain age limit, for example age 60 for civil servants working in executive services of the police, fire brigade and judicial services
• is 63 and retires on her or his own request
• is severely handicapped and retires on her or his own request at 60
• must be retired because of long-term invalidity, if there is no gross negligence on the part of the civil servant
• is transferred into temporary retirement
• served for at least 5 years

Entitled to a civil servants pension are:

• civil servants
• judges and soldiers
• priests, pastors, ministers etc., church officials
• public employees and officials governed under public law

The civil servants entitlement is based on the Civil Service Benefits Act –( BeamtVG - Gesetz über die Versorgung der Beamten und Richter in Bund und Ländern).

Calculation of civil servants pension:

• the amount of pension a civil servant receives, depends on the years of service and the salary grade
• every full year of service worked in full time increases the individual claim of a pension of a value of 1.79375
• after a period of 40 years of full time service the maximum value of 71.75 is reached
• the estimated value is then multiplied in percentage with the current salary. The sum of this calculation is the amount of pension a civil servant receives
• family allowances are paid uncut
• for part-time work the annual value of 1.79375 will be reduced proportionately
• if invalidity occurs before the age of 60, supplementary periods are taken into account
• on early retirement on her or his own request, a civil servant will incur a reduction in pension amounting to 3.6 % per year
• pension entitlements from the statutory pension insurance or earned income count towards the civil servants pension

Civil servants with a career of 40 years of service are entitled to a maximum of 71.75% of the annual salary. These payments are subject to income tax. But these payments are taxed differently than pensions of employees working in the public sector.

Retirement pay in the event of incapacity for work (Unfallruhegehalt):

• is paid when invalidity occurs due to an accident at work
• the minimum Ruhegehalt is 66.667 % of the last salary entitlement
• the maximum Ruhegehalt must not exceed the maximum pension entitlement

Minimum or basic salary (Mindestversorgung):

• is paid when invalidity occurs not due to an accident at work, for example illness
• the minimum salary, unaffected by the civil servants position, is 65 % of the salary in pay-grade A4
• the minimum salary, depending on the civil servants position is 33,333 % of the salary

Benefits for surviving dependants:

• widow or widower of a deceased civil servant receive 60 % of the pension
• persons born after 31.12.1961 only receive 55 % of the civil servants pension
• family allowances continue to be paid uncut
• income of dependants is counted
• Marriage for the reason of benefits. If the marriage was shorter than one year or the civil servant was 65 or older when he or she married, and there were no children, then no pension will be paid to the widow or widower

Tips, Checklist

• In the event of dismissal, civil servants loose their pension entitlement. In such a case the person has to be reinsured with statutory retirement pension and will receive a normal pension

Last update: 08/12/2010