The pension contribution reduces your statutory assessment basis. As a result, you pay less taxes and social security contributions today. Your net pay only decreases by a smaller amount due to the tax progression.
Contributions
How it works
Our pension plan is based on three pillars: You automatically receive a basic contribution from JTI. In addition, you can provide for yourself with your own contributions from your gross pay. This is encouraged by us: You receive a matching contribution from us on top of your own contribution.
Providing for yourself pays off twice. You benefit not only from the subsidy, but also from tax advantages and the long-term interest on your contributions, which is credited to you immediately.
Contributions
What we take care of
In addition to your salary, you receive basic contributions to your pension. They consist of two parts: The base amount is € 200 for all full-time employees. The remaining amount depends on your salary: Up to earnings of € 90.600 per year (contribution ceiling (BBG) of the statutory pension insurance 2024), you will receive a contribution of 2,5% of your gross base salary plus target bonus and annual special payment.
If your earnings are higher, you will receive 8,5% as a contribution for the salary above the BBG.
What you get on top
Your employee contributions are subsidized by the matching contribution: JTI adds 50% on top! For tariff employees, the JTI subsidy equals a maximum of 2% of the BBG. The maximum subsidy for a full-time employee then becomes € 1812. For non-tariff employees, the limit of the matching contribution for salaries above the BBG is 2 % of pensionable income, and below it is also € 1.812 (2% of BBG).
Try out how to optimize your contributions with our calculator.
What you can do: Tariff
As a tariff employee, you can make your own contributions into the pension plan. You can pay in up to 4% of the BBG free of tax and social security contributions. If you wish, you can also pay in your VWL (capital-forming benefit) here. All components flow into the HPK pension fund. Don't forget: JTI promotes your commitment: with the matching contribution.
If you wish, you can pay in another 4% tax-free. However, normal social security contributions apply to this portion and there is no matching contribution. Click here for the participation form.
What you can do: Non-tariff
As a non-tariff employee, you can also make your own contributions. Up to 4% of the BBG, these will flow into the HPK pension fund. Anything you invest above this amount goes into the JTI Pension Plus supplementary account. The minimum contribution to the supplementary account is € 500. In total, you can pay a maximum of 10% of your pensionable income into the HPK and the supplementary account. JTI supports both investments with the matching contribution.
Click here for the declaration of participation.
Example
65.000 € Pensionable Income
€
Basic contribution from JTI
+
€
Voluntary employee contribution
+
€
Matching contribution from JTI
+
€
Interest at JTI
=
€
Pension capital of one year (minimum amount)
How to save taxes today
If you make contributions to the pension plan, you save taxes today. This is because your contributions are deducted directly from your gross pay. They are always tax-free and exempt from social security contributions up to € 3.624 per year.
Only after the contribution has been deducted will your salary be taxed. Thus, the deduction reduces your taxable income. This means that you only forgo a portion of your contribution on a net basis. Taxes are not due until payout happens.
The saved social security contributions may result in slightly lower benefits from the statutory social security system (e.g., reduction in statutory old-age, invalidity, and survivors' pensions). However, this reduction is generally more than offset by the matching contribution and the interest earned on the contributions.
For comparison:
If you do not contribute to the pension plan, you will be subject to the usual taxes and social security contributions on your gross pay.
What happens to the money
01
All contributions to JTI Pension Plus earn interest in advance right at the time they are paid in, up to age 60. To do this, we convert them into capital amounts: The contribution is multiplied by an age factor. The age factor reflects the interest and compound interest as well as disability and death risks. The younger you are, the higher the compound interest effect up to 60 – and the higher the age factor.
02
What interest is in the age factor? A reference interest rate is calculated for this purpose: Its basis is the applicable maximum actuarial interest rate for life insurance companies. In addition, an interest premium of 1,5% is added by JTI. Currently, the reference interest rate is 1,75% per annum.
The advance interest in the capital amount is paid until age 60. From age 61, you receive an annual bonus amount. This corresponds to interest on your entire pension account at the reference interest rate.
03
The capital amounts are credited to three different accounts: the basic account, the supplementary account, and the plus account for matching contributions. This way, you can always track how your pension is compounding at JTI. When you cash out, you will receive the entire balance of all your accounts.
What to do now
Basic contributions and the collectively agreed supplement flow automatically. To add employee contributions, you must complete a form and submit it to People & Culture. The same is true for VWL. You can download the forms here.