German Bundesrat approves pension overhaul and expanded volunteer tax benefits

The German Bundesrat has enacted two major pieces of legislation. The pension reform, known as the Altersvorsorgereformgesetz, creates a new capital‑market based “Altersvorsorgedepot” that will replace the Riester system from 1 January 2027. Eligible participants – including employees, civil servants, self‑employed persons and recipients of unemployment benefits – can receive up to €540 in state subsidies per year, with additional child allowances and a cost cap of 1 % on fund fees.

At the same time, the Steueränderungsgesetz introduces several improvements for volunteers. From 1 January 2026 the general volunteer allowance rises to €960 annually and the trainer‑coach allowance to €3 300. Liability limits for associations are increased, and the revenue threshold that triggers detailed spending reports is lifted to €100 000, reducing administrative burdens for many non‑profit organisations.