Actuarial aspects in determining the transfer value in occupational pension schemes

Overview

The following comments are primarily concerned with actuarial issues in connection with the determination of the transfer value. This professional standard of practice relates to the legal status as of December 01, 2021.
The transfer by mutual agreement between the contracting parties can take place either by the commitment being taken over by the new employer or by the value of the vested pension entitlement acquired by the employee (transfer value) being transferred to the new em-ployer and the latter making a commitment of equal value.
If the company pension is provided through a pension fund, a pension fund or a direct insurance and the transfer value does not exceed the contribution assessment ceiling in the general pension insurance, the employee can demand from his former employer or, under certain conditions, from its pension provider that the transfer value be transferred to a cor-responding external pension institution of the new employer.
However, the determination of the transfer value does not only play a role in the transfer of pension entitlements. The transfer value is also referred to when determining the settlement amount in the settlement of vested pension rights and current benefits as well as when determining the value of an entitlement within the meaning of the German Occupational Pensions Act (Betriebsrentengesetz) or the corresponding capital value in the case of pen-sion equalization.