General

Since the entry into force of the LOB law, the Guarantee Fund has effected equalisation by means of subsidies in favour of employers with a disproportionately large number of older staff and which are confronted with a particularly heavy burden because of the graduated savings contributions under LOB (unfavourable age structure).

The subsidy is paid to the benefit scheme.

Entitlement to a subsidy exists in cases where the sum of all pension credits pursuant to LOB of all the employees of a particular employer exceeds 14% of the sum of the corresponding coordinated wages.

The subsidies are calculated each year on the basis of the previous calendar year.

Self-employed persons are only taken into account for calculation of subsidies if they:

  • take up voluntary insurance within one year of entry into force of the law or start of self-employment or
  • were subject to compulsory insurance for at least six months and took voluntary insurance immediately afterwards