Did you know that pension provision - in most countries - does not only cover your life standard at old-age? It also deals with benefits in the event of disability and offers coverage to your spouse / civil partner and children in case of death.
The state pension insurance is part of the social security system in Germany, as in most other Member States of the EU and EEA States. Additional coverage might be provided through other types of pension savings or insurances you will be affiliated with or contribute to during your entire career. To keep track of who will pay your pension later on, it's vital to distinguish between the different sources and the respective pension schemes. To get basic knowledge watch the introductory video Who will pay my pension, some day...? on the website of Find Your Pension
The statutory pension insurance scheme (DRV) is part of the social security system in Germany. The scheme protects those insured and their families if their employment capacity is endangered or reduced, and when it ends due to age or death. It covers medical rehabilitation measures, professional rehabilitation, pensions due to diminished employment capacity, old-age pensions, surviving dependents' pensions. It does not just pay retirement pensions. Its aim is to maintain employment capacity too.
Fellowships are usually exempt from compulsory social security payments. However, the option exists to continue paying into the pension scheme on a voluntary basis during the fellowship (§ 7 SGB VI) to avoid any gaps in your pension history.
Occupational pension schemes in Germany are widespread in big enterprises and multi nationals. Once you work in the public service in Germany, the collective labour agreement states that you are required to have an occupational retirement pension. If you are covered by the social insurance, you most probably will be affiliated to an occupational pension scheme.
General information on the German Pension Landscape as well as other countries can be found under the Pension Landscape Germany on the website of Find Your Pension
Contributions to the statutory and occupational pension schemes are deducted directly from the gross salary of the insurees. The employee does not have to worry about them.
Many European pension systems require a certain insurance or contribution period in order to qualify for a later pension. For instance, the German state pension system contains a minimum insurance period of 5 years for an entitlement to old-age pension. These 5 years include periods of paying contributions as well as times spent raising a child.
Regarding the qualifying period of pension systems in other European countries.
As a researcher who changes jobs frequently, it is important to know that social insurance in the EU and EEA is coordinated according to the EU Regulation 883/2004 on the coordination of social security systems.
Following this principle Member States of the EU, EEA States and Switzerland or Partners to a Bilateral Social Security Agreement have to acknowledge periods during which pension rights have been accrued in those countries and have to count them together with respect to a certain qualifying period required.
Periods during which pension rights have been accrued in countries which do not have a Social Security Agreement ("Sozialversicherungsabkommen") with Germany may not be added to the German periods in order to fulfil the prerequisites for entitlement. It is definitely worth informing yourself beforehand about the regulations valid in your country.
Once you retire, your pension accumulated in the different countries should be paid by each single country individually. There are just a few exceptions aimed at avoiding mini-pensions. All social security providers award pensions on the basis of their own national legislation. This means, that under certain circumstances, you may be entitled to a pension in several different countries.
You will find more information about this issues in the DRV Pension ABCs as well as other state pension schemes‘ ABCs to be viewed on the website of Find Your Pension after having chosen the institution in the map and opened the specific pension scheme.
As a public sector employee your salary is determined by the collective bargaining agreement applicable to your employment contract. Additionally, you acquire an occupational/company pension at a supplementary pension fund for the public sector, e.g. the VBL (Saarland: RZVK; Hansestadt Hamburg ZDP). The pension providers responsible for you are listed on the website of Find Your Pension after selecting your employer.
More detailed information is available in the VBL Pension ABCs on the website of Find Your Pension after selecting your target group.
Usually affiliated employers register their employees for the compulsory insurance with the VBLklassik scheme. For salaried scientific employees with temporary employment contracts, who may not fulfill the required qualifying period in the VBLklassik, the labour agreement on pensions provides an alternative arrangement, as shown in the following VBL clip: Scientific employees - Insurances for scientific employees
As a rule of thumb you cannot claim for a refund in case of being entitled for a pension. Whether you are entitled to a refund or not mainly depends on these factors:
- your citizenship (EU; EEA, other nationalities)
- place of residence and
- the regulations of the scheme.
For more detailed information on the German pension system and schemes in respect of the aforementioned questions of mobile researchers please refer to the website of Find Your Pension After selecting your employer and target group you will find the relevant FAQs in the Pension ABCs.
- Find your pension
Detailed information on the German Pension Landscape and matters concerning pension entitlements, pension contributions and benefits. After selecting your employer and your target group you will find your relevant FAQs in the Pension ABCs.
Find your pension
- Supplementary pensions for the public sector
Information about the Pension Institution of the Federal Republic and the Länder (VBL) which is the largest provider of supplementary pensions for the public sector in Germany.
Pension Institution of the Federal Republic and the Länder
- Pension entitlements in the German statutory pension scheme
Information on the German statutory pension scheme.
- FAQ on the international pension rights and the German statutory pension scheme
Frequently asked questions on the recognition of pension rights.
- Pensions for Researchers
Information about EU-wide social security protection and transfer of pension rights.
- RESAVER (Retirement Savings Vehicle for European Research Institutions)
RESAVER will be a state of the art retirement savings product that will enable mobile and non-mobile employees to remain affiliated to the same pension vehicle when moving between different countries and changing jobs.