The Zweites Betriebsrentenstärkungsgesetz (Second Occupational Pension Strengthening Act, BRSG II) has been passed and, according to a law firm article of January 2026, was promulgated in the Federal Law Gazette. It changes occupational pensions (betriebliche Altersversorgung, bAV) in several ways that matter to employees: the social partner model, opting-out, buy-outs of small entitlements, transfers when the provider changes and support for low earners. This guide explains the law and its consequences for career starters. We cover the benefits of an occupational pension in a first job in Occupational pension in your first job: Yes or no?.
In short: The Second Occupational Pension Strengthening Act was promulgated in the Federal Law Gazette according to a law firm article of January 2026. It opens the social partner model, makes opting-out easier, raises the buy-out threshold for small occupational pensions from 1.0 to 1.5 percent of the reference value and improves support for low earners. Last updated: November 2026.
Key points at a glance
- The law rests on the committee recommendation of 3 December 2025 (printed paper 21/3085) and, according to the law firm article, was promulgated in January 2026.
- The aim is wider coverage: according to the explanatory memorandum, only just over half of employees subject to social insurance have an occupational pension.
- The social partner model is opened to companies without collective agreements, and opting-out is made easier.
- Employers may buy out small entitlements without your consent within set limits; the threshold rises to 1.5 percent of the reference value.
- The basic rules, such as the right to salary conversion and the 15 percent employer top-up, remain.
What is the Second Occupational Pension Strengthening Act?
The full title is “Second Act to Strengthen Occupational Pensions and to Amend Other Acts”. According to the committee recommendation of 3 December 2025, the committee recommended adopting the draft, with the votes of CDU/CSU and SPD against the AfD and with the Greens and the Left abstaining (printed paper 21/3085, as of December 2025, in German). The explanatory memorandum names as the problem that coverage stands at just under 52 percent of employees subject to social insurance and is slightly declining. The greatest potential lies, it says, with smaller companies and low earners. The law firm article of 28 January 2026 reports the promulgation in the Federal Law Gazette. The exact reference and the wording of each provision are in the Federal Law Gazette.
What changes in detail?
The main changes at a glance. The information is based on the Bundestag printed paper and on a specialist article by an employment law firm (as of January 2026):
| Topic | Change | What it means for you |
|---|---|---|
| Social partner model | Opened to companies without collective agreements, with the consent of the bargaining parties (according to the printed paper and the law firm article) | More employers can offer an occupational pension through a collective model |
| Opting-out | Opt-out systems with a right to object are governed by section 20 (2) and (3) BetrAVG (retrieved 2 November 2026); according to the law firm article, they are now possible without a collective agreement through a works agreement | Salary conversion can be the default, and you can object |
| Buy-out | Threshold rises from 1.0 to 1.5 percent of the reference value, and for lump sums to 18 tenths (Section 3(2) BetrAVG) | Small entitlements can be paid out without your consent |
| Transfer | New rule on transfers when the provider changes according to the law firm article; the existing transfer right is in section 4 (3) BetrAVG | Accumulated capital can move more easily |
| Early occupational pension | Drawing the occupational pension alongside a partial statutory pension is possible | More flexibility for a gradual exit |
| Support amount | According to the printed paper, the income limit is indexed and the maximum support amount raised (Section 100 EStG) | Employers get more incentive to pay in for low earners |
The specific amounts of the low-earner support are set out in the Income Tax Act (Section 100 EStG, in German). They are not listed here because they follow statutory reference values and can differ depending on the date.
What does the higher buy-out threshold mean for you?
Employers can buy out an entitlement without the employee’s consent if the monthly amount of the ongoing benefit at the intended retirement age would not exceed 1.5 percent of the monthly reference value (Bezugsgröße), or 18 tenths for lump sums (Section 3(2) BetrAVG, as of October 2026). For 2025 the printed paper gives values of 56.18 euros a month or 6,741 euros as a lump sum, up from 37.45 euros and 4,494 euros. For 2026 the law firm article puts the value at about 60 euros a month. The rule also applies to existing entitlements and pensions already in payment.
This has two sides. For the employer, the administration of very small contracts falls away. For you, it means a small entitlement from a former job can be paid out instead of flowing later as a pension. A payout can have tax and social insurance consequences. Check what documents you receive after a job change, and read our guide Vesting of occupational pensions: What stays when you change jobs (in German).
What still applies to make salary conversion worthwhile?
The right to salary conversion is unchanged: you can require your employer to convert up to 4 percent of the contribution ceiling of the general pension insurance. If the employer saves social insurance contributions as a result, it must pay 15 percent of the converted salary as a top-up (Section 1a BetrAVG, as of October 2026). Your entitlement is vested if you leave after turning 21 and the commitment has existed for at least three years (Section 1b(1) BetrAVG, as of October 2026).
A worked example with assumptions: you convert 200 euros a month. The 15 percent employer top-up is then 30 euros, so 230 euros a month go into the contract. With a contribution ceiling of 8,450 euros a month (2026), the 4 percent limit is 338 euros a month, so you stay below it. Whether it pays off for you depends on tax and social contributions, the contract and your planning. For the calculation, see Calculating salary conversion: tax and social contributions.
Who is the law especially relevant for?
- Employees of small and medium-sized companies that have not offered an occupational pension so far.
- Low earners, for whom the employer has an incentive to pay in because of the support amount.
- Career starters, who change employers more often and should watch transfer and vesting rules.
- Employees who want a flexible exit from working life.
Frequently asked questions
Does my employer now have to offer an occupational pension?
No. The law does not oblige employers to make an offer. It improves the framework so that more companies do. Your right to salary conversion under Section 1a BetrAVG remains.
Can my employer simply pay out my small occupational pension?
Under the conditions of Section 3(2) BetrAVG, yes, without your consent, if the entitlement is below the threshold of 1.5 percent of the reference value a month or 18 tenths for lump sums. Ask for the calculation and clarify the tax consequences.
What is opting-out?
With opting-out, salary conversion is introduced as the rule for all employees, and you can object to it. The law makes these systems easier to set up, according to the law firm article also without a collective agreement through a works agreement. The rules are in section 20 BetrAVG.
When do the individual changes apply?
According to the law firm article, the law was promulgated in January 2026. Individual provisions may enter into force in stages, and the sources used here give no dates per provision. The text in the Federal Law Gazette is decisive.
What to do next
- Ask your employer whether an occupational pension, a social partner model or an opting-out system is offered.
- For an existing contract, check vesting, portability and the buy-out rule.
- Work out your employer top-up and the deductions before you set an amount.
- Compare the occupational pension with other building blocks, for example the Altersvorsorgedepot.
Related guides
- Retirement provision 2027: Overview of custody account, Frühstart-Rente and Riester
- Occupational pension or Altersvorsorgedepot: Which option suits you?
- Occupational pension in your first job: employer top-up
- Direct insurance or Pensionskasse: Which occupational pension is inside? (in German)
- Retirement provision for students: Starting early with small amounts
Sources: German Bundestag: committee recommendation, printed paper 21/3085 (as of December 2025, in German), Occupational Pensions Act (BetrAVG) (as of October 2026, in German), Section 100 EStG, support amount for occupational pensions (as of October 2026, in German), Kliemt: BAV update 2026, Second Occupational Pension Strengthening Act (specialist article, as of January 2026, in German).
Last updated: November 2026. This guide is general information, not individual advice. If you want to put your own retirement provision into perspective, here is the route to a consultation with Academycon.
