The basic pension will officially start on January 1st, but the payment is likely to be delayed.
What that means specifically for those affected.
Surcharge for small pensions: basic pension starts - payment is delayed
Update from January 4th, 2020:
The
basic pension
will officially start on January 1st, 2021, but the
payment
will probably
be delayed by several months
due to the high administrative
effort
- and then
take place
retrospectively
.
This was reported by the German Press Agency (dpa, as of January 1, 2021).
According to a report by
ntv.de
(as of December 29, 2021), Federal Labor Minister Hubertus Heil (SPD) has also made it clear once again that the basic pension will only be paid out in the middle of the year.
In addition to the immense administrative effort, the Corona crisis is also causing delays, wrote the news portal.
Who will benefit from the
basic pension
?
According to dpa, around
1.3 million pensioners * with narrow salaries
will receive the premium in the future
.
Those who have at least
33 years of pension contributions
from employment, child-rearing and caring activities
benefit
.
Your life's work should be recognized, the visit to the social welfare office should be saved.
According to
dpa, however,
the
full surcharge
is only paid to those whose monthly income as a pensioner is a maximum of 1,250 euros for single persons or 1,950 euros for spouses or partners.
Income above this is credited to 60 percent - with 1,300 euros for a single person, the additional 50 euros to 60 percent, as dpa further reports.
On average, there is a surcharge of 75 euros.
The cost of the basic pension will initially amount to 1.3 billion euros per year and will increase to 1.6 billion euros by 2025.
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Surcharge for small pensions: Basic pension - when is it paid out?
Update from December 14th, 2020:
At the turn of the year, the new rules for the
basic pension come
into force, they will
be implemented from July 2021 according
to a report by
BR Online
(as of December 12th)
.
The federal government expects that
around 1.3 million of the almost 26 million people of retirement age * will benefit from the increase
.
Those who have at least 33 years of pension contributions from employment, child-rearing and caring activities benefit.
Your life's work should be recognized, and you will not have to go to the social welfare office.
On average, there should be a
surcharge of 75 euros
for those affected
, as the German Press Agency (dpa) also reported.
The
basic pension
will officially start on January 1, 2021. The payout will probably be delayed by several months due to the high administrative effort and will then be made retrospectively, as dpa wrote at the beginning of December.
BR Online explains
the background to
the introduction of the basic pension for pension insurers
.
You would have to check carefully whether retirees are
entitled to the extra money
.
This test will drag on until summer 2021.
“The
pension funds expect to be able to send notices about the basic pension from July,
” the portal said.
You can also read:
Pension: This is how much money is really left for Germany's pensioners on average
Bundestag passes law on basic pension in Germany
Update from 07/01/2020:
After a long dispute, the Union and SPD have now
agreed
on the
basic pension
- the draft law is to be passed by the
Bundestag
this week
, as reported by "Tagesschau.de".
The way for the achievement, which has been discussed for years, was cleared after the Union gave up its resistance to funding from the federal budget, according to a report on "ntv.de", according to which Federal Labor Minister Hubertus Heil (SPD) paid the costs the
entry year 2021 put
at 1.4 billion euros.
Funds from the pension insurance should not be used for this, writes the news portal, rather a financing from tax money is planned.
For this, the SPD actually wanted to use the planned financial transaction tax.
Its introduction is completely in the stars, now funds from the federal budget are to be used, it continues on ntv.de - as long as no others are available, as CSU regional group leader Alexander Dobrindt has emphasized.
When will the basic pension come?
The government is now proposing a
staggered introduction
, as reported by ntv.de.
Accordingly, eligible new pensioners would be the first to receive the basic pension, writes the portal.
"Those who are already retirees will have to wait for a payment by the end of 2022 at the latest - and will then receive the basic pension retroactively," the report also says.
The Deutsche Rentenversicherung expects a start of payments to the existing pensioners from July 2021.
Who is entitled to the basic pension?
"Low-wage earners should get a supplement to their pension after 33 years of basic pension times, which reaches the full amount from 35 years of age," writes the news channel.
Basic pension periods arise from the payment of compulsory contributions from professional activity as well as from contribution periods for raising children and caring for relatives.
According to the report, Labor Minister Heil expects 1.3 million recipients - 70 percent of them women.
How is the amount calculated?
"A basic pension can be paid if one's own contribution to the pension insurance was or amounts to at least 30 percent of the average earnings of the insured," reports "ntv.de".
And: "The pension entitlement is doubled for a maximum of 35 years, but limited to 80 percent of average earnings if necessary. In the end, the surcharge is reduced by a flat rate of 12.5 percent."
Which income is taken into account?
In the case of single persons, income below 1,250 euros is not taken into account; for couples it is 1,950 euros.
According to the report, 60 percent of the income above this is offset against the basic pension.
Only at more than 1,600 euros or 2,300 euros will the income be fully credited.
"Investment income above the saver allowance should also be taken into account," writes the news portal.
"Pensioners will therefore have to report the corresponding investment income to the Deutsche Rentenversicherung."
The pension insurance can then check the information.
The same applies to foreign income.
Tax-free income such as from voluntary work and those from lump-sum taxed marginal employment - i.e. mini-jobs - are not taken into account, according to the report.
How high is the basic pension?
A low-wage earner with 35 years of basic retirement can, under certain conditions, achieve a premium of up to 404.86 euros, Portal calculates.
Low-wage earners do not have to apply for the basic pension, because: Whoever is entitled should be determined by means of an automatic data comparison with the tax offices.
What is the basic security allowance all about?
"Anyone who still has earnings below the state basic security after 33 years of contributions despite the basic pension should benefit from an allowance that is not offset against the basic security," it continues on "ntv.de".
It is 100 euros plus 30 percent of the income from the statutory pension.
"Overall, however, the imputed sum must not exceed EUR 216. The tax exemption introduced in 2018 for company or state-sponsored private pension schemes, such as the Riester pension, is also granted."
Read here:
Pension shock for millions of Germans: Increase in the West threatens to fail in 2021
Basic pension planned from 2021 - but the Bundestag and Bundesrat must first agree
Article from May 18, 2020:
Employees who have worked their
entire
life and have earned little should receive a pension *
well above the Hartz IV level
.
The
basic pension
should ensure that.
At least that is how the federal government decided in February.
The approval of the Bundestag and Bundesrat is still pending.
From 2021, the pensions of around 1.3 million people with low income could be increased.
After long discussions, the
controversial basic pension was
put on the parliamentary route on May 15 in the Bundestag.
When the law was first discussed, supporters and opponents of the project took another stand.
The SPD, trade unions and social associations demanded rapid implementation.
The economy, on the other hand, would like to see the project sunk.
Different signals came from the government partner Union.
For example, Hesse's Prime Minister and CDU Federal Vice-President Volker Bouffier questioned the basic pension, while other Union politicians assured their coalition partner, the SPD, that they would be faithful to the contract.
But what exactly is the basic pension about? Read the most important answers here:
This is what the basic pension is all about
The basic pension is intended for employees who have worked for many years for little money,
cared for relatives or raised children.
From a purely mathematical point of view, you have a very small pension - and it should therefore be topped up, according to the German Press Agency (dpa), according to the Ministry of Social Affairs by an average of 75 euros gross per month.
In individual cases, there could even be a gross surcharge of a good 400 euros.
In the planned start year of 2021, around 1.3 million people, 70 percent of whom are women, reports dpa.
At least 33 years of contributions are required.
Read here
:
Higher pensions have been decided: This is how much money there will be from summer 2020
Basic pension: There is a dispute over costs and financing
The basic pension is to be financed from
tax revenues
.
Actually, a financial transaction tax - a tax on financial transactions - should be introduced, which has not yet existed.
Basic pension: dispute over means test
There has also been a dispute about the "means
test
"
since the beginning
.
What is meant is a calculation of whether a potential basic pension recipient really needs the pension supplement.
The Union and the SPD had agreed on this, reported the German press agency: It should not be the assets of a pensioner *, but his possible income in addition to the pension to be checked.
Single pensioners should be allowed to earn 15,000 euros a year, partners 23,400 euros without it being counted towards the basic pension, according to the draft law.
Read here:
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Basic pension: These problems exist in practice
For the
income
check, the pension insurance needs the data of the tax offices, where the tax
assessments of
the persons concerned are located.
You would have to set up a faster automatic data exchange for this.
The time until January 1, 2021 will be short.
In the meantime, as it was said, there was talk of the fact that the basic pension could start on January 1st, but the payment could take place later and retrospectively.
Read here
:
This is how much it costs to retire earlier - can you afford it?
Basic pension: what should happen now?
The political groups continue to negotiate in the committees.
For the final consultation and coordination, the basic pension will only come back on the agenda when a compromise has been found, as reported by the dpa.
The SPD is demanding that this happen before the summer break.
Also interesting
: tax returns for pensioners - you should know that now
(ahu / dpa) * Merkur.de is part of the nationwide Ippen central editorial network.
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