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Currently, a company setting up an occupational pension scheme in Germany has five legal structures available to it. Occasionally, a company will need to employ all five structures to cover the whole of its workforce, as each structure comes with certain restrictions.
For some time now, the pensions industry has been calling for the abolition of this cap to reduce complexity in the second pillar and allow for some schemes to be merged. Peter Görgen, head of the supplementary pension department in the German labour ministry, has dismissed this demand. The pensions industry has also been highly critical of the government's plan to allow employers to make additional payments for their employees into the first pillar to cover invalidity pensions.
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