As of: February 9, 2024, 9:45 a.m
By: Marcel Reich
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Introduced to support pensioners with low incomes, the basic pension is now being criticized.
The reasons are varied.
Munich – The basic pension, which was originally introduced to combat old-age poverty in Germany, is now at the center of a heated debate.
According to a recent study, this subsidy for low-income retirees reaches fewer people than originally planned.
Nevertheless, those who benefit from it can expect an average annual supplement to their pension of around 1,000 euros without having to fight through bureaucratic hurdles.
Here is an overview.
In contrast to many other social benefits, pensioners who are entitled to the basic pension supplement do not have to submit an application.
© Jan Woitas/dpa
Who receives the basic pension?
The basic pension was designed for those who, despite long years of work and contributions to the German pension insurance, only receive a small pension in old age.
In order to receive the supplement, you must be able to prove that you have had at least 33 years of basic pension.
However, the full basic pension supplement is only granted after 35 years.
According to the Federal Ministry of Labor and Social Affairs (BMAS), these include:
Mandatory contribution periods from insured vocational training
Periods of self-employment with compulsory pension insurance, or compulsory insurance upon application
Periods with sickness or rehabilitation benefits
Compulsory contribution periods for raising children and non-profit care activities
Child-rearing times and time taken into account for care purposes
Contribution periods due to a mini-job subject to pension insurance
Periods of military service
Contribution periods according to the foreign pension law
Replacement times such as military service, prisoner of war, etc.
The pension insurance company carries out an annual income check to determine whether and to what extent there is a claim.
For the full supplement, the monthly income as a pensioner can be a maximum of 1,375 euros for single people or 2,145 euros for married couples or life partners.
The taxable income, the tax-free part of the pension and capital gains are taken into account.
Who benefits from the basic pension?
According to a study by the German Institute for Economic Research (DIW), women and East Germans in particular benefit from the regulation.
Around 72 percent of the recipients were women, as they are more likely than men to be able to claim childcare time and lower wages.
In the East, 4.1 percent of men and 7.8 percent of women received the basic pension, in the West it was 1.8 percent of men and 6.2 percent of women.
Do you have to apply for a basic pension?
In contrast to many other social benefits, pensioners who are entitled to the basic pension supplement do not have to submit an application.
You will receive the additional money automatically without having to deal with German bureaucracy.
The German pension insurance automatically checks whether there is a claim and the payment is also made automatically.
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How high is the basic pension?
The amount of the basic pension is determined individually.
According to the BMAS, the average basic pension supplement is 86 euros (gross) per month, i.e. more than a thousand euros per year.
In 2023, pensioners could receive a maximum of 441 euros per month in basic pension in addition to their pension.
Why is the basic pension controversial?
However, fewer people than expected are receiving the basic pension.
According to a study by DIW, a total of 1.1 million people were receiving the basic pension at the end of 2022, as the Süddeutsche Zeitung reports.
When it was introduced, the federal government assumed 1.3 million people would be eligible; SPD leader Saskia Esken even put the number at 1.4 million.
“The basic pension helps, but it supports too few people.
“It is not enough to adequately combat poverty in old age,” says Peter Haan from DIW.
According to the institute, only 4.3 percent of the approximately 21 million pensioners receive the supplement.
What are politicians planning on the subject of basic pensions?
In the traffic light coalition, the SPD and FDP have questioned the regular income test for basic pensions.
“The SPD has always advocated that the basic pension is paid out if necessary without any income or asset test,” said Tanja Machalet, pension policy spokeswoman for the SPD in the Bundestag, to the newspapers of the Funke media group.
“We had to accept the compromise in order to be able to pass a basic pension in the previous black-red coalition.” “The income test not only leads to unnecessary effort for pension insurance, but also causes problems for those who receive the basic pension Unfortunately, needing life is the result.”
The FDP also expressed criticism of the income test.
“It is too bureaucratic, does not reach those who need it precisely and consumes horrendous administrative costs,” said Anja Schulz, pension policy spokeswoman for the FDP parliamentary group.
“Every fourth euro that is spent on the basic pension does not end up with the pensioners, but rather where the annual recalculation of the income calculation takes place.” According to the Funke media group, at the beginning of the year, numerous basic pension recipients reported to the social and welfare associations about their salaries the income test had been reduced.
With material from AFP and dpa