As a citizen of Korea, Republic of 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 Korea, Republic of, can appear daunting.
This article goes into the crucial details of the eligibility for a Refund of German Pension Contributions for the citizens of Korea, Republic of.
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 Korea, Republic of.
German Pension Refund Eligibility for Citizens of Korea, Republic of
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 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 Korea, Republic of 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 Korea, Republic of.
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 Korea, Republic of, 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 Korea, Republic of, 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 Korea, Republic of
As a citizen of Korea, Republic of, 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 Korea, Republic of regulate the exchange of social security benefits between the two countries.
Specifically, these agreements state that as a citizen of Korea, Republic of 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 Refund of German Pension Contributions. 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 Refund of German Pension Contributions 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 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.
