Riester pension factor unlawfully reduced
Illegal reduction of the Riester pension factor – your rights following the Federal Court of Justice ruling in Augsburg
Your insurer has retrospectively reduced the pension factor in your Riester pension scheme – thereby cutting your future pension, even though you have paid your contributions as agreed. In its judgement of 10 December 2025 (IV ZR 34/25), the Federal Court of Justice (BGH) has clarified: Clauses entitling the insurer to unilaterally reduce the pension factor are invalid. Hundreds of thousands of policies with Allianz, Zurich, AXA and other insurers are affected. As specialist solicitors for insurance law in Augsburg, we will enforce your original guaranteed pension factor and claim back payments for pensions that have already been reduced.
What is the pension adjustment factor and why is it so important?
The pension factor determines how much monthly pension you will receive for every €10,000 of capital saved. It is set as the guaranteed pension factor when the policy is taken out and is the key calculation factor for your future pension. With unit-linked Riester pension insurance policies, you have no guaranteed capital – the value of the fund investment fluctuates. The pension factor is the only element that gives you planning security: regardless of how the funds perform, you will receive the promised pension amount for every €10,000 of capital. If the pension factor is reduced, your pension decreases proportionally – for the same amount of capital.
Federal Court of Justice ruling of 10 December 2025 – reductions in the pension adjustment factor are invalid
In its judgment of 10 December 2025 (IV ZR 34/25), the Federal Court of Justice ruled on an action brought by the Baden-Württemberg Consumer Advice Centre against Allianz Lebensversicherungs-AG: clauses in unit-linked Riester pension insurance policies which entitle the insurer to unilaterally reduce the pension factor are invalid. The Federal Court of Justice estimates the number of affected contracts to be in the six- to seven-figure range.
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Pension Factor Check
Has your pension multiplier been reduced? Compare the guaranteed pension multiplier stated in your policy with the figure in the latest statement of account.
Affected insurers – who has reduced the pension adjustment factor?
Many insurers have reduced their pension factors in recent years. The following overview highlights the most notable cases – this is not an exhaustive list, as many reductions were made without public announcement. In Augsburg, we will review your policy regardless of whether your insurer appears on this list.
Allianz, Zurich and AXA – the most prominent cases
Allianz Lebensversicherung has already reduced the pension factor for around 700,000 unit-linked policies (IndexSelect, Invest, InvestGarantie, Invest alpha-Balance, policies taken out between July 2001 and December 2011) as early as 2017 and reduced it again by 9 per cent in 2021 (policies taken out between July 2001 and June 2013). The Federal Court of Justice (BGH) ruling of 10 December 2025 was handed down in the test case against Allianz. Zurich Lebensversicherung has reduced the pension factor for policies from the period 04/1998 to 12/2016 – the Regional Court of Cologne had already declared the clause invalid on 08/02/2023 (Ref. 26 O 12/22). AXA Lebensversicherung was issued with a warning by the North Rhine-Westphalia Consumer Advice Centre in January 2024 for unlawful reductions in the pension factor.
Other insurers affected
In addition to Allianz, Zurich and AXA, reductions in the pension factor have been documented at LPV Lebensversicherung (formerly Postbank, which was also issued with a warning in January 2024), VHV and R+V, amongst others. This list is not exhaustive. Many insurers have adjustment clauses in their General Terms and Conditions of Insurance (AVB) which, following the Federal Court of Justice (BGH) ruling, must now be classified as invalid. Check your insurance policy: compare the guaranteed pension factor stated there with the current status notification letter. If the current value is lower, your pension factor has been reduced.
Your claims – what we can secure for you in Augsburg
If your pension factor has been unlawfully reduced, you have clear entitlements. We will rigorously enforce these against your insurer in Augsburg.
Restoration of the guaranteed pension factor
Your main claim: The guaranteed pension factor stated in your insurance policy at the time the contract was concluded remains unchanged. The adjustment clause is invalid; the reduction has no effect. We are requesting the insurer to confirm in writing that the original annuity factor applies to your policy. If the insurer refuses to do so, we will bring an action for a declaratory judgement under Section 256 of the German Code of Civil Procedure (ZPO). According to the Federal Court of Justice (BGH) ruling, the prospects of success are excellent.
Back payments and compensation where a pension is already in payment
If you are already receiving a pension calculated on the basis of the reduced pension factor, you are entitled to back payment of the difference for every month since the reduction took effect – plus interest for late payment. In addition, a claim for damages under Section 280 of the German Civil Code (BGB) may be considered. The standard limitation period is three years (Section 195 of the German Civil Code), but it only begins once you become aware of the reduction and its unlawfulness. Following the Federal Court of Justice ruling of December 2025, the limitation period for many claims is likely to expire at the earliest by the end of 2028. Nevertheless, you should act promptly.
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This information does not constitute legal advice in individual cases.
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