As a citizen of Philippines 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 Philippines, can appear daunting.
This article goes into the crucial details of the eligibility for a Pension payment restitution for the citizens of Philippines.
Whether you’re contemplating requesting a refund of your German pension or seeking to understand the social security arrangements between Germany and Philippines better, this guide aims to offer clear insights and guidance to assist you in making informed decisions about your financial future after departing from Germany.
German pension refund entitlement for citizens of Philippines
As an expat living and working in Germany, you will contribute approximately 9% of your monthly taxable income to Deutsche Rentenversicherung, the official pension scheme in Germany. It’s important to understand that this contribution is a shared responsibility, with your employer matching your payments into the social security system.
So what happens when you stop working in Germany and leave? Can they be claimed back?
The guidelines for requesting a refund of your pension contributions from the German Pension Insurance are specified in the German Social Security Code (§210 SGB VI) and are further detailed in the Social Security Agreement between Germany and Philippines. This agreement is tailored to the needs of nationals of Philippines, detailing eligibility criteria and the process for applying for a refund of your contributions.
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 Philippines, 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 Philippines, you may be entitled to a refund if you meet certain conditions.}
Pension Refund Eligibility: General Criteria
When you leave Germany, you are generally entitled to a refund of your German pension contributions if
a) you are not entitled to make voluntary contributions to the German pension scheme (freiwillige Versicherung) from your new place of residence.
and
b) at least 24 months have elapsed since your last contribution to the German statutory pension scheme.
The possibility of voluntary insurance (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 Philippines
As a national of Philippines, 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 Philippines regulate the exchange of social security benefits between the two countries.
Specifically, these agreements state that as a citizen of Philippines 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.
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 the UK, you may be entitled to a pension refund 24 months after your last contribution.
Use our free eligibility check to claim your Pension payment restitution
When navigating the terrain of German pension refunds, it becomes clear that processing times can vary considerably. They can often stretch from several months to more than six months. For those seeking a quicker process, specialized services offer an accelerated route.
Additionally, the Pension payment restitution is made easy through our online tool in the form of a free eligibility check. These instruments are designed to evaluate your eligibility for a Pension payment restitution seamlessly and estimate the potential refund amount. The pension check ensures a transparent and straightforward process for examining your pension insurance records with the German pension fund and initiating a Pension payment restitution.
