Pensions

Our managers can allocate a portion of their salary to additional pension plan contributions. With deferred compensation, they can either increase their current pension income after retirement or choose to receive a lump sum. As this contribution is taken from their gross income and is converted into pension benefits by Bayer, employees will not pay taxes on it until the pension is drawn. This is advantageous, as a lower tax rate applies to many pensioners.

Employees covered by collective wage agreements and those with apprenticeship contracts can convert a basic amount of deferred compensation into pension plan contributions, as well as parts of their income (vacation pay, annual supplementary payment). In addition, Bayer will supplement this with an attractive, contractually-agreed contribution. This allows employees to increase their pension income, or receive a lump sum, as well as reducing their tax burden, because the additional contributions will be taken from their gross salaries. Taxes are only paid on the benefits when the pension is drawn.