As a citizen of Australia who has experienced working in Germany, it’s important to get to know the criteria for getting a pension refunded. Your contributions to the German pension system are an important part of the country’s Social Security system. However, navigating the process of reclaiming these contributions when you leave Germany, especially understanding the requirements for nationals of Australia, can seem daunting.
This article delves into the crucial details concerning eligibility for a Pension contribution refund for citizens of Australia.
This guide aims to provide clear insights and guidance to help you make informed decisions about your financial future after leaving Germany, whether you’re considering claiming a refund of your German pension or want to better understand the social security arrangements between Germany and Australia.
German Pension Refund Eligibility for Citizens of Australia
As a foreigner living and working in Germany, you contribute approximately 9% of your monthly taxable income to the Deutsche Rentenversicherung, which is the official pension insurance system in Germany. It’s vital to understand that this contribution is a shared responsibility, with your employer matching your payments into the social security system.
So, what becomes of these contributions after your employment in Germany ends, and you leave the country? Can they be reclaimed?
The Social Security Code (§210 SGB VI) and the Social Security Agreement between Germany and Australia set out the guidelines for claiming a refund of your pension contributions from the German pension insurance scheme. This agreement, which sets out the eligibility criteria and the procedure for applying for a refund of your contributions, is tailored to the needs of nationals of Australia.
Understanding the procedure for claiming a refund of your German pension contributions is key as you plan for your future post-Germany. As a citizen of Australia, you may be eligible for a refund, provided you fulfill certain conditions.| When planning your future after leaving Germany, it is important to understand the procedure for claiming a refund of your German pension contributions. As a citizen of Australia, you may be entitled to a refund if you meet certain conditions.}
Pension Refund Eligibility: General Criteria
When you leave Germany, you generally become eligible for a refund of your German pension contributions if:
a) you are ineligible to make voluntary contributions to the German pension system (voluntary insurance/freiwillige Versicherung) from your new place of residence.
and
b) at least 24 months have passed since your most recent contribution to Germany’s statutory pension scheme.
The option to make voluntary insurance payments (a) depends on the social security agreement between Germany and your home country.
Generally speaking, you are not entitled to get your German Pension Contributions refunded if
a) You are entitled to or are already receiving a German pension.
b) You can make statutory pension contributions or are covered by compulsory insurance in Germany.
c) You have the option of making voluntary contributions to the German pension scheme (voluntary insurance).
In short: The eligibility for German Pension Refund for Citizens of Australia
As a national of Australia, you are eligible for a refund of your German pension contributions only if your employment in Germany lasted less than 5 years (meaning you have made pension contributions in Germany for no more than 59 months) and at least 24 months have elapsed since your most recent pension contribution in Germany.
Intergovernmental agreements on social security
The bilateral agreements between Germany and Australia regulate the exchange of social security benefits between the two countries.
Specifically, these agreements state that as a citizen of Australia living in Germany as a tax resident, you are eligible for a German retirement pension after a contribution period of 60 months.
Regarding voluntary contributions to the Deutsche Rentenversicherung, the Social Security Agreement specifies that if you reside in the EU or the UK, you are given the choice to continue making contributions towards qualifying for a statutory pension in Germany.
Furthermore, if you have already made contributions for at least 60 months, you are allowed to continue contributing to the German pension system from anywhere in the world.
This means if you live in the EU/UK or have contributed to the German pension system for a minimum of 60 months, you do not qualify for a Pension contribution refund. This is because you are eligible for a German pension, and the agreement enables you to make voluntary contributions, even if you do not directly benefit from them.
If you do not meet the pension eligibility criteria and live outside the EU or UK, you may be eligible for a pension refund 24 months after your last contribution.
Use our free eligibility check to claim your Pension contribution refund
Navigating the terrain of German pension refunds reveals that processing times can significantly vary, often extending from several months to over half a year. For those seeking a swifter process, specialized services provide an accelerated pathway.
In addition, Pension contribution refund is made easy through our online tool in the form of a free eligibility check. These tools are designed to seamlessly assess your eligibility for a Pension contribution refund and estimate the potential refund amount. The pension check ensures a transparent and straightforward process for checking your pension insurance records with the German Pension Fund and initiating a Pension contribution refund.