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 Refund of German Pension Contributions for the citizens of Japan.
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 Japan.
German Pension Refund Eligibility for Citizens of Japan
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 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 citizen of Japan, you are only entitled to a refund of your German pension contributions if your employment in Germany lasted less than 5 years (i.e. you paid pension contributions in Germany for a maximum of 59 months) and at least 24 months have elapsed since your last pension contribution in Germany.
Intergovernmental Social Security Agreements
The bilateral agreements between Germany and Japan regulate the exchange of social security benefits between the two countries.
In particular, these agreements state that as a citizen of Japan 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 Refund of German Pension Contributions. 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 Refund of German Pension Contributions
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 Refund of German Pension Contributions 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 Refund of German Pension Contributions 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 Refund of German Pension Contributions.