ZfA: the Central Allowance Office for Retirement Assets explained simply
The Zentrale Zulagenstelle für Altersvermögen (ZfA) is the authority behind the allowances in the Altersvorsorgedepot. It calculates, checks and pays the basic allowance, the child allowance and the career starter bonus. Savers have no direct dealings with it; the provider handles everything.
What is the ZfA?
The ZfA is a department of Deutsche Rentenversicherung Bund based in Brandenburg an der Havel. It was founded in 2002, when the Riester pension was introduced, and has been responsible for the entire processing of state allowances in private retirement provision ever since.
With the introduction of the Altersvorsorgedepot (Germany’s state-subsidized retirement investment account) in 2027 the ZfA takes on the same function for the new contracts. The processes are identical, only the amounts and calculation formulas are new.
The ZfA’s tasks at a glance
- Checking subsidy eligibility: comparing with pension insurance data to see whether someone is compulsorily insured or self-employed.
- Calculating the allowances: the basic allowance based on your own contribution, the child allowance based on child benefit data, the career starter bonus based on age.
- Payment: the allowances are transferred in a batch to the provider, who books them into the saver’s securities account.
- Reclaim: in the case of a non-qualifying withdrawal (e.g. a payout before retirement) the ZfA reclaims the allowances.
- Statistics: publication of anonymized statistics on subsidized retirement provision.
Do I have to communicate with the ZfA myself?
The ZfA works in the background. Savers do not have to take care of the allowances themselves.
How the process works for savers
- You take out an Altersvorsorgedepot with a certified provider.
- You sign the permanent allowance application once with your provider.
- You pay in contributions.
- The provider reports annually your contribution amount to the ZfA.
- The ZfA calculates the allowance and cross-checks it against social insurance and child benefit data.
- The ZfA transfers the allowance to the provider.
- The provider credits the allowance to your securities account.
The whole process runs in the background. You do not have to submit applications or exchange correspondence.
The permanent allowance application, one form for everything
With the permanent allowance application you authorize your provider to apply for the allowances with the ZfA automatically every year. The advantage: you only have to sign the application once, after that everything runs in the background.
Anyone who does not sign the application would have to take action themselves every year, a trap waiting to happen. In practice, without this application a provider usually does not apply for the allowances at all.
When the money arrives
| Phase | Timing |
|---|---|
| Pay in contributions | contribution year |
| Provider reports to the ZfA | by 31 May of the following year |
| ZfA checks | June to August |
| The ZfA transfers | July to September |
| Provider credits the securities account | shortly afterwards, usually within 14 days |
Example: contributions for 2027 typically show up as an allowance in the securities account in late summer 2028. The ZfA works retrospectively, not prospectively.
When do you have to contact the ZfA directly?
Practically never. In most cases contact runs through the provider. Direct contact with the ZfA is only necessary in exceptional cases:
- Appeal against an allowance notice (the ZfA sends notices in disputed cases).
- Reclaim in the case of a non-qualifying withdrawal, but then usually via the provider.
- Address changes for spouse contracts that do not run through the provider.
Contact: ZfA, Königstraße 1, 14776 Brandenburg an der Havel. Telephone and online form via the Deutsche Rentenversicherung website.
Frequently asked questions about the ZfA
What happens if I do not sign a permanent allowance application?
Without this application the provider does not apply for the allowance. You lose the money even though you have paid in.
How do I find out whether I have received the full allowance?
From your provider’s annual tax statement. It shows the amount of the allowance the ZfA has paid out.
Can I report contributions to the ZfA myself?
No. Contributions are reported exclusively via the provider.
What if my data at the ZfA is incorrect?
Contact your provider. They will send a correction report to the ZfA.
Do I receive notices from the ZfA?
Only in exceptional cases (reclaims, appeal proceedings). In normal operation everything runs quietly in the background.
How secure is my data at the ZfA?
The ZfA is a public authority with data protection standards under the BDSG and the GDPR. Data is used only for calculating allowances and for statistics.
What do I have to do actively?
The only thing that matters is the permanent allowance application with your provider, after that everything runs automatically.
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