As a citizen of Bosnia and Herzegovina who has experienced working in Germany, familiarizing yourself with the criteria for obtaining a pension refund is essential. Your payments into the German pension system are a significant element of the country’s social welfare framework. However, navigating the process to reclaim these contributions upon leaving Germany, especially understanding the requirements for nationals of Bosnia and Herzegovina, can appear daunting.
This article delves into the crucial details concerning eligibility for a Pension payment restitution for citizens of Bosnia and Herzegovina.
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 Bosnia and Herzegovina.
German Pension Refund Eligibility for Citizens of Bosnia and Herzegovina
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 Bosnia and Herzegovina 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 Bosnia and Herzegovina.
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 Bosnia and Herzegovina, 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 Bosnia and Herzegovina, you may be entitled to a refund if you meet certain conditions.}
Eligibility for pension refund: 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.
Typically, you do not qualify for a refund of your German Pension contributions if:
a) You are eligible for pension benefits or are already receiving a retirement pension from Germany.
b) You can make statutory pension contributions or are covered by compulsory insurance in Germany.
c) You have the opportunity to make voluntary contributions to the German pension scheme (freiwillige Versicherung).
In short: The entitlement to a German pension refund for nationals of Bosnia and Herzegovina
As a national of Bosnia and Herzegovina, 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 exchange of social security benefits between the two countries is governed by bilateral agreements between Germany and Bosnia and Herzegovina.
In particular, these agreements state that as a citizen of Bosnia and Herzegovina who is resident for tax purposes in Germany, you are entitled to a German old-age 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.
In addition, if you have already paid contributions for at least 60 months, you can continue to pay into 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 payment restitution. 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 payment restitution
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 payment restitution 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 payment restitution 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 payment restitution.