Basic pension: Now it should finally really start

Created: 2022-01-20 05:12

Some retirees with small pensions will soon be able to look forward to more money.

© Ute Grabowsky/photothek.net/Imago Images

Because of the high effort involved in determining the entitlement to the basic pension, not all pensions have been checked by a long shot - but now it should go further.

This is good news for many retirees.

Berlin – Around a year after the start of the basic pension, the pension insurance is now examining a possible claim for the majority of pensioners* in Germany.

In the new year, the examination of the basic pension surcharge will gradually be initiated for all age groups, said the President of the German Pension Insurance Association, Gundula Roßbach, of the German Press Agency in Berlin.

The average basic pension is 75 euros per month

The basic pension was introduced on January 1, 2021.

For the full surcharge, the monthly income as a pensioner may be a maximum of 1250 euros (single people) or 1950 euros (married couples or life partners).

The taxable income, the tax-free part of the pension and capital gains are checked.

The basic pension is aimed at low earners who have worked for at least 33 years, and the contribution must have been at least 30 percent of average earnings.

On average, the basic pension should be 75 euros.

There is a maximum of 418 euros.

Since the middle of last year, the pension insurance has been checking all new pensioners to see whether they are entitled to the basic pension supplement, according to Roßbach.

The claim has actually been in effect since the beginning of last year.

However, the first beneficiaries only received the surcharge retrospectively more than half a year after the official start.

Because of the income checks that were due, a data superhighway between the pension insurance and the tax authorities first had to be set up.

The pension insurance tells the tax offices who has worked long enough for a basic pension - they check the respective income.

The interaction with the tax offices in the income check works "smoothly", assured Roßbach.

Basic security: review of 26 million pensions

Everyone with basic security and the oldest pensions followed, reported Roßbach. "And now the other existing pensioners will follow - i.e. everyone who has retired since 1992," said Roßbach. "We will start with the oldest cohorts and in the new year gradually start checking the basic pension surcharge for all cohorts." A total of around 26 million pensions will be checked to see whether the surcharge will be paid.

"The point mentioned in the coalition agreement, according to which the examination effort for investment income should be considered again, only affects the next stage," explained Roßbach. SPD*, Greens* and FDP* had announced: "During the electoral period we will evaluate the effect of the basic pension, develop suggestions for improvement, especially with regard to the examination of investment income."

Roßbach explained: "The most time-consuming part of the income check is checking those capital gains that are not reflected in the income tax return." The fully automated income check only takes into account income that the tax authorities have reported as part of the taxable income.

A review of the investment income not included in taxable income is only planned from 2023.

"We are open to a possible change on this point," said Roßbach.