Registering with the Künstlersozialkasse - Germany

This is kind of a specific question, but I am hoping some of you good folk might have some suggestions or first hand experiences with being registered with the Künstlersozialkasse.

I have dual Canadian/UK citizenship, and am a working musician with a p/t (20hrs/week) job with a good company here in Berlin.

Some friends of mine that have successfully joined the Künstlersozialkasse (KSK) artist program have suggested that I apply for this.

I am quite confident - knowing the application rules - that I would "qualify" for this program, as I do pretty ok financially through my own musis perfomance and production here in Germany, and abroad.

I initially got the part-time job to supplement my "artistic" income with something more stable, but also the bonus of my employer paying half my healthcare was a big plus too. When I was hired they asked whether I wanted to work for them under 1 year contract, or just "freelance"? I went for the contract because of the health plan.

Now, after getting a few paychecks - and seeing the taxes taken off, specifically for pension, which I will never use here in Germany - I am wondering whether the right decision would have been to get hired as a "freelancer" and also get in the KSK?

A friend at the place I work is doing it this way, and he says it results in him invoicing the company for full pay - with a 19% VAT charge on top. He says that he pays the 19% back at tax time, and also has a great tax accountant that successfully writes off most of his "artistic" activities and in the end he pays very little tax. He also says that by being on the KSK program he, and his wife, get full health insurance for around 85 EUR a month.

Now, seeing I pay about 75 EUR even after my employer coughs up the rest, the way he is doing it sounds like something I should investigate.

I am aware that I would have to switch my contract to freelane from the 1 year contract I have - but that's not a big deal, and my employer will do it no prob. I am also aware that I would lose an claim to unemployment benefits.

Is there any big piece of info I am missing here?? Because it sounds like the KSK / "freelance" route is the way to go - especially if you are a working artist that can write stuff off. It's killing that I'm giving away over 200 eur a month just to the pension plan!

If anyone here on Toytown has any nuggets of wisdom in relation to my case above, i would be grateful for any assistance, direction or help.

Sorry for the long post, but I figure the devil is in the details...

Thanks,

appearantly it takes considerable time to get accepted by the KSK - they themselves speak of several month time needed for processing an application. There was a thread here one that discussed what you need to provide in order to get accepted. AFAIK they have tightened the rules extremely lately and depending on when your friend got accepted you might find that it is not that easy anymore...

Here is what another person wrote about her experience regarding KSK applications. I would judge from what you write that you will have problems with some of the points, right?

so, check if you can really fulfill the requirements, maybe even talk to the KSK in advance before you cancel any contracts or so...

Cheerio

It took them 6-8 months before they processed my application.

Half of your monthly KSK payments go towards your Pension aswell. The benefit is that the overall cost is about the same as what you would pay for regular health insurance alone. It's a good deal, really.

Well he must have registered very low earnings with the KSK. At that rate he would be below the taxable threshhold anyway (sounds a bit dodgy to me!)

I agree. You have to provide a LOT of evidence and simply switching to freelance status won't get you in. You need to provide them with many months of bills, evidence that you really are a "Künstler", etc. etc. and then wait up to 8 months for a reply.

What do you mean? You are paying to build an entitlement. You will still be entitled to the aprropraite pension based on your contributions on retirement, whereever you live them.

If you only pay in for a short time (5 years I think), you get your contributions back.

Just about the only way you will "not use it" is if you die unmarried before retirement.

I have heard this a few time, but cannot find exact details on it on German tax sites or my Canadian Gov site.

Does one get it back "before" I leave Germany? (if I am here for less than 5 years)

If anyone knows how this works I would appreciate the input, because if I got it back somehow before (or soon after) I left - then I would feel less like I was throwing money away.

And I know that it goes towards my "entitlement" and that I am "supposed" to get it back... but I really dont trust that I"ll see a couple of thousand EURO from the german government in 35 years!
And if it is transferred to my home countries government pension system (canada!) - I trust it even less!!

My CPA in Germany also told me that you should be able to get back your contributions (social security) if you leave Germany within five years. But you can't get it back for two years AFTER that. I don't know the details but I suspect if you keep all your paperwork and find a CPA who knows what they are doing it's not so complicated. And once you have a tax number in Germany I ASSUME that's what you would need to claim payments if you are in fact here longer than 5 years and are entitled to payments later in life...

Lonemale:
"And I know that it goes towards my "entitlement" and that I am "supposed" to get it back... but I really dont trust that I"ll see a couple of thousand EURO from the german government in 35 years!"
Well, who else are you going to trust? maybe a year or so ago, Lehmann Bros?
I trusted the UK Government from 1962 onwards and they have paid up,
and I live a not uncomfortable life as a pensioner as a result.
A lot better results than from (in)"Equitable Life", where I also had pension contributions.
As a high-tech power house with massive exports there are far worse countries than the BRD to depend on!

I'm wondering, is it possible to take a break from my monthly payments.

I am with the KSK, but I wont be in Berlin for two months.
I already have health benefits where I'm going.

Can I put a hold on my insurance here in Berlin, while I am away?

you'll have to ask KSK for that but I am pretty sure the answer is "No". As long as you are a resident in Germany, you have to have German health insurance, you can not put a break into that if you go on holiday, research or even work for a short while. You can of course deregister entirely and leave your German residence behind, but if you plan to return later to Germany, you'll have to go thru all the hassle again to get into the system...

Cheerio