Services
Managing director's pension and GGF pension commitment
Tax-optimized retirement provision for executives – legally secure, flexible and individually designed
Briefly explained
The managing director's pension is the company pension scheme for managing directors and shareholder-managing directors - usually as a pension commitment via direct commitment or support fund (Unterstützungskasse). Provisions are tax deductible according to § 6a EStG; Appropriateness (75% limit) and status determination are crucial. JCD Strategie & Consulting GmbH has been providing advice throughout Germany for over 22 years.
Frequently asked questions about managing director pensions
Does the company pension law also apply to shareholders and managing directors?
As a rule, not for controlling shareholders-managing directors. You are not considered an employee within the meaning of the Company Pension Act; This means, among other things, that statutory insolvency protection and the right to salary sacrifice (Entgeltumwandlung) no longer apply. Your supply must therefore be specifically secured contractually and tax-wise.
What do you have to pay attention to when making a pension promise for the managing director?
The commitment must be written and clear (§ 6a EStG). In the case of controlling shareholder-managing directors, the tax office also checks, among other things, earning capacity (usually at least ten years until the start of retirement), an appropriate probationary period, financial viability and excess pension provision (a total pension does not exceed 75% of the last active salary). Violations can lead to a hidden distribution of profits.
When does a status determination for managing directors make sense?
Whenever it is unclear whether a managing director is subject to social security contributions - for example in the case of holdings of less than 50% without a blocking minority. The clearing house of the German pension insurance makes a binding decision upon application (§ 7a SGB IV). This creates legal certainty and avoids high additional payments.
What happens to a pension commitment when the GmbH is sold or succeeded?
Existing pension commitments are often an obstacle for buyers. What is common is to outsource it to a pension fund or a support fund (Unterstützungskasse) or to reorganize the commitment. Because there are significant tax risks, every step should be coordinated with tax advice.
Status: October 2026. General information – no legal or tax advice in individual cases.
Our solutions for managing directors
Partner-Managing Director
Tax-optimized retirement provision for GGF with special legal requirements
- Steuerliche Gestaltung
- Pensionszusage
- Reinsurance insurance
Employed managing directors
Individual care concepts for non-corporate shareholders
- Direct pension promise (Direktzusage)
- Support fund (Unterstützungskasse)
- Pension insurance institution (Pensionskasse)
Liability protection
Legally secure design and protection of pension commitments
- Compliance
- Dokumentation
- Legal review
Advantages of managing director pensions
Take advantage of tax options and secure appropriate retirement provision.
Significant tax advantages for companies
Tax-free or preferential retirement provision
Flexible design options
Protection against insolvency and seizure
Professional administration and support
Legally secure implementation
Individual analysis
Let us develop your optimal care concept
Frequently asked questions about managing director pensions
When is a shareholder-managing director considered subject to social security contributions?
A GGF is subject to social security contributions if it does not have a blocking minority (at least 50% voting rights) or is economically dependent and bound to instructions despite participation. The status is determined by the clearing house of the German Pension Insurance. Incorrect classifications can lead to high additional payments. Clean corporate documentation and clear management contracts are essential.
How does the pension promise for shareholders-managing directors work tax-wise?
Pension commitments for GGF must be vestable, appropriate and financeable (guideline: 75% of the total compensation). The provisions are tax deductible as operating expenses in accordance with § 6a EStG. Reinsurance insurance secures the promise. In the case of controlling GGFs, the tax office checks particularly critically whether arm's length principles are being adhered to. Hidden profit distributions (vGA) must be avoided.
What is the difference between shareholder-managing director pension (GGF-Versorgung) and company pension scheme for employees?
shareholder-managing director pension (GGF-Versorgung) is not subject to social insurance obligations and offers significantly greater freedom of design. While there are contribution limits for employees for company pension schemes (8% BBG tax-free), GGF pension commitments can amount to up to 75% of the total remuneration. GGFs have no legal right to PSVaG insolvency protection, but require reinsurance. The tax treatment is more complex and requires expertise in corporate law.
Which implementation methods are suitable for managing directors?
For dominant GGFs, direct commitments with reinsurance or support fund (Unterstützungskasse)s are optimal as they offer maximum flexibility and unlimited tax deductibility. Employed GFs also benefit from direct insurance or pension funds. The choice depends on the ownership structure, tax objectives and company size. Support funds allow particularly high pension benefits without immediate contribution limits.
What are typical errors with GGF pension commitments?
Common mistakes: unreasonably high commitments (over 75% limit), lack of vestability (too short commitment period), no or insufficient financing, unclear adjustment clauses and lack of documentation. Such deficiencies lead to hidden profit distributions and additional tax claims. The commitment must be made in writing, before the due date and valid under company law. A shareholder resolution is mandatory.
How is the payment of a GGF pension taxed?
GGF pensions are fully taxed in the payout phase as other income (§ 22 Nr. 5 EStG), but the fifth rule applies to capital severance payments. Pension benefits are subject to the income share in accordance with § 22 EStG. Social security contributions only apply if the GGF has voluntary statutory health insurance. Private health insurance does not pay any contributions to healthcare services.
Legal basis: Income Tax Act (EStG) § 6a (pension provisions), § 22 Nr. 5 (taxation), Social Code (SGB) IV for status determination, Commercial Code (HGB) § 253 (provisions). Tax arrangements require individual assessment. Status: October 2026.
Your path to optimal management care
Analysis & status determination
Inventory, shareholdings and social security audit.
Conception & tax optimisation
Development of legally secure pension commitments in accordance with § 6a EStG.
Implementation & administration
Legally secure implementation with backing and ongoing compliance.