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 reimbursement for citizens of Australia.
Whether you’re contemplating requesting a refund of your German pension or seeking to understand the social security arrangements between Germany and Australia 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 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 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 Australia. This agreement is tailored to the needs of nationals of Australia, 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 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 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 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 reimbursement. 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.
Claim your Pension reimbursement with our Free Eligibility Check
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 reimbursement 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 reimbursement 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 reimbursement.
