As a citizen of Canada 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 Canada, can seem daunting.
This article delves into the crucial details concerning eligibility for a Pension reimbursement for citizens of Canada.
Whether you’re contemplating requesting a refund of your German pension or seeking to understand the social security arrangements between Germany and Canada 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 Canada
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 becomes of these contributions after your employment in Germany ends, and you leave the country? Can they be reclaimed?
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 Canada. This agreement is tailored to the needs of nationals of Canada, 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 Canada, 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 Canada, you may be entitled to a refund if you meet certain conditions.}
Eligibility for pension refund: 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.
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 entitlement to a German pension refund for nationals of Canada
As a national of Canada, 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 Canada.
In particular, these agreements state that as a citizen of Canada 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 that if you live in the EU/UK, or if you have paid into the German pension system for at least 60 months, you will not be eligible for a Pension reimbursement. This is because you are entitled to a German pension and the agreement allows you to make voluntary contributions even if you do not benefit directly 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 reimbursement
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.
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.
