IEF: Allocation of Contributions to Occupational Employee Pension Schemes to the Pension Fund

The Insolvency Compensation Fund (IEF) is a state guarantee institution that, since January 1, 2013, has assumed nationwide outstanding contribution shares to occupational employee provision funds in the event of insolvency. The objective is the seamless replacement of due and otherwise uncollectible claims of employees that would otherwise be lost in the event of company insolvency. Funding is provided as a direct grant at a funding rate of 100% and is available without volume limitation. By fully covering outstanding contribution shares, it is ensured that the social security of employees is maintained even in the event of the employer’s insolvency.

Eligible for funding are companies and employee provision funds that cannot assert due contribution arrears in insolvency proceedings by other means. Applications can be submitted continuously without a deadline; there is no specific budget cap. The grant approval is conditional upon all outstanding contributions to employee provision being demonstrably due and not enforceable by other means. The administration is carried out under sovereign authority by IEF-Service GmbH on behalf of the Federal Ministry of Labour, Social Affairs, Health, Care and Consumer Protection. Interested companies and provision funds can obtain comprehensive information on application procedures and required documents directly from IEF-Service GmbH.