Pension & retirement terms

What is the contribution assessment ceiling?

The contribution assessment ceiling is the maximum income level used to calculate certain statutory social-insurance contributions.

What are ageing provisions in private health insurance?

Ageing provisions, called Altersrückstellungen in German, are amounts built into certain private health-insurance premiums to help account for the fact that healthcare costs may increase as insured people grow older. They are not a personal savings account that you can freely withdraw, and they are not a promise that your premium will never rise. Instead, the tariff is designed to collect part of the expected cost earlier and use the arrangement to make the long-term premium structure less dependent on age alone. The exact calculation and treatment depend on the contract, insurer and applicable framework.

What is a premium relief tariff in private health insurance?

A premium relief tariff, called Beitragsentlastungstarif in German, is an optional arrangement attached to or associated with private health insurance. The policyholder pays an additional contribution during an earlier contribution phase in exchange for contractual premium relief during a defined later period, often connected with retirement. The relief is not a general promise that future PKV costs will be low, and it is not the same as ageing provisions included in the main health tariff. The contract determines how much is paid now, when relief begins and how the arrangement responds to changes in employment, insurer or residence.