How is the VBL occupational pension taxed?

When the VBL occupational pension is paid out in old age, it must be taxed as income (deferred taxation). This is because the contributions are tax-free during the savings phase, but tax is payable when they are paid out. The only exception is if you are an employee in the public sector and have paid the contributions in the savings phase until retirement from income that has already been taxed and have not claimed any tax incentives. In this case, only the income share is taxable. In addition, contributions to statutory health insurance and long-term care insurance are withheld from the VBL occupational pension in the payout phase.