Grundrente

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It is indeed new law - introduced this year - aimed at boosting low pensions for those in the state system (Pflichtversichert).  There is nothing that you need to do.  The DRV will calculate any amount payable for those in receipt of certain pensions.  In simple terms you get more Entgeldpunkte allocated to you, so more pension. 

 

There are special rules around which otherwise qualifying activities/time will be taken into account and which ones will not (I think unemployment periods are excluded but it is a while since I scanned any articles about it) and it is also linked to your taxable income arising in the current year minus 2 or 3 (zuversteuerndes Einkommen des vorvergangenes, oder vorvorvergangenes, Kalendarjahr).  For the 2021 calculation, that would be taxable income for 2018 or 2019 (I am not sure when and why they look at 2018 rather than 2019 or vice-versa). 

 

This is achieved by an exchange of info between tax and pension authorities, so I have no idea how it will work for those of us in receipt of a German pension, not resident in Germany and with income not taxable in Germany.  I assume, so far as all other qualifying criteria are met, that some sort of certification will be required from the tax authority in your country of residence.  

 

My wife is already in receipt of her German pension, so we await correspondence telling us whether she will qualify in principle, subject to proof of UK income, or whether she does not meet the wider criteria.  Something of a wait and see game at the moment... 

 

From what I have read, the regime looks hideously complicated, and won't give rise to any errors or challenges from pensioners, ho hum! 

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This Grundrente is a stupid idea as it´s a waste of taxpayer´s money. It´s not means-tested so that my late mom would have qualified even though she wouldn´t have needed it. She was pro forma employed in my dad´s business at a very low salary just because that way she and we kids had cheap health insurance. She never actually worked for my dad though. And I know of more people in similar situations.

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40 minutes ago, jeba said:

This Grundrente is a stupid idea as it´s a waste of taxpayer´s money. It´s not means-tested so that my late mom would have qualified even though she wouldn´t have needed it. 

 

A short read on the case example page of the Deutsche Rentenversicherung site would appear to contradict that:  

 

Christoph Temmel worked for 35 years as an electrical engineer in a small company in Bremen. He was able to accumulate an average of 1.0 earning points per year - which currently corresponds to a salary of around 40,551 euros per year. In return, he receives an old-age pension of around 1,197 euros per month from the pension insurance fund. However, the electrical engineer will not receive a basic pension supplement: People who, like Temmel, have been able to accumulate an annual average of 0.8 earning points or more are not entitled to the basic pension.

 

thank-you, deepl.com

 

 

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Whether or not it is a good or bad idea (and I am sure we all have a view on that), it's on the statute book now.  It is also my understanding that it is also means tested in the sense that pretty much all taxable income of husband and wife (etc) is taken into account (angerechnet) and the Grundrente reduced if certain limits are exceeded.

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4 hours ago, silty1 said:

A short read on the case example page of the Deutsche Rentenversicherung site would appear to contradict that:  

No, it doesn´t because income from other sources than your pension isn´t being considered (AFAIK). My mother had a pension of only about € 300. So she would have qualified even though that was by no means the main source of her income. She mainly lived on rental income.

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2 hours ago, GaryC said:

It is also my understanding that it is also means tested in the sense that pretty much all taxable income of husband and wife (etc) is taken into account (angerechnet) and the Grundrente reduced if certain limits are exceeded.

If that´s the case my point is moot and I´ll eat my words. However, that´s not what I remember. Too lazy though to research it.

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44 minutes ago, jeba said:

Too lazy though to research it.

 

You're allowed to keep your opinion, though

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57 minutes ago, jeba said:

If that´s the case my point is moot and I´ll eat my words. However, that´s not what I remember. Too lazy though to research it.

I too am too lazy to go into such depth until I have to

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2 hours ago, silty1 said:

 

You're allowed to keep your opinion, though

I´d only have to change it if they really changed the draft law that was criticized in the uprun to the passing of the final bill and which was criticized for exactly what I was pointing out.

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