The Basic Scheme is a defined contribution scheme. Money is deposited into your investment account for you every month. StiPP invests this money for you. The money invested and the investment result together form your pension capital. When you retire, you use the pension capital to buy a monthly pension benefit.
The premium and what has been arranged
In the Basic Scheme, your employer pays the full pension contribution. This arrangement does not cost you anything. The Basic Scheme regulates partner's pension if you are married or in a registered partnership. In the Basic Scheme, there is no right to pension accrual in the event of incapacity for work.
The deposit
7.4% of your pension base is deposited into your investment account. The pension base is the pensionable salary minus the franchise (2025: € 8.90 per hour). Please note: StiPP has a maximum pensionable hourly wage. This will be € 40.53 per hour in 2025 and will be determined annually. You do not accrue any pension capital above this hourly wage.
A calculation example
- Your pensionable salary is € 2,300 and the number of pensionable hours is 80.
- The pension base is the pensionable salary minus the offset. The deductible is € 8.80 x 80 = € 712.
The pension base is therefore € 2,300 (pensionable salary) - € 712 (the deductible) = € 1,588. - Every month, 7.4% of €1,588 = €117.51 is added to your pension capital.
Investment result
StiPP invests your premiums and those of all other participants. Every month we take stock. Is there a positive result? Then you will receive a return and your pension capital will be higher. Is there a negative result? Then we process this (negative) return and your pension capital will be lower.
Purchasing a pension benefit
When you retire, you use the pension capital to buy a pension benefit. How much pension you buy depends on the amount of your pension capital and the rates at that time. On your retirement date, you also choose whether you want to purchase a survivor's pension from your pension capital.