As a citizen of Japan 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 Japan, can appear daunting.
This article goes into the crucial details of the eligibility for a Pension reimbursement for the citizens of Japan.
Whether you’re contemplating requesting a refund of your German pension or seeking to understand the social security arrangements between Germany and Japan 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 Japan
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 Social Security Code (§210 SGB VI) and the Social Security Agreement between Germany and Japan 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 Japan.
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 Japan, 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 Japan, 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 Japan
As a national of Japan, 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 Social Security Agreements
The exchange of social security benefits between the two countries is governed by bilateral agreements between Germany and Japan.
Specifically, these agreements state that as a citizen of Japan living in Germany as a tax resident, you are eligible for a German retirement pension after a contribution period of 60 months.
With regard to voluntary contributions to the German pension insurance scheme, the Social Security Agreement stipulates that if you are resident in the EU or the UK, you will be given the option of continuing to make contributions to qualify 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.
Use our free eligibility check to claim your Pension reimbursement
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.
In addition, Pension reimbursement 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 reimbursement 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 reimbursement.