Special Explanatory Leaflet on the Supplementary Agreement to the Agreement on Social Security between Germany and Canada
Published by the
Landesversicherungsanstalt
Freie und Hansestadt Hamburg,
Bundesversicherungsanstalt für Angestellte,
Bundesknappschaft,
Seekasse, and the
Bahnversicherungsanstalt
Table of Contents
- The Supplementary Agreement at a Glance
- Eligible Persons
- 2.1 Extension of the National Socialist Sphere of Influence to the Former Homeland
- 2.2 Attainment of age 16
- 2.3 Affiliation to the German Language and Cultural Group
- Retroactive Payment
- 3.1 Period for Retroactive Payment of Contributions
- 3.2 Scope of Retroactive Payment of Contributions
- 3.3 Creditable Periods
- 3.4 Amount of Contribution
- 3.5 Special Provisions
- 3.6 Contribution Collection
- 3.7 Application and Application Period
- Benefits
- 4.1 Principles for the Calculation of Benefits under the Supplementary Agreement
- 4.2 Commencement of the Old-age Benefit
- 4.3 Calculation of the Old-age Benefit
- 4.4 Application for Benefits
- 4.5 Establishment of Benefits
- Survivors
- 5.1 The Insured Person Died During the Application Period Without Having Made an Application for Retroactive Payment
- 5.2 The Insured Person Dies After Having Made an Effective Application for Retroactive Payment Under the Supplementary Agreement
- New Establishment of Benefits
1. The Supplementary Agreement at a Glance
The Pension Reform Act 1992 amended the German Foreign Pensions Law (FPL) with effect from July 1, 1990 by adding a provision stipulating that many German-speaking Jews from Eastern Europe, who are not as yet covered by the FPL will now come within the scope of that Law. This provision is Article 17A FPL. The wording of Article 17A FPL in the version of the Pension Reform Act 1992 is given in the appendix.
The application of the Foreign Pensions Law means that contribution periods completed in the pension insurance schemes of a person's former homeland as well as employment periods can be considered in the German Pension Insurance Scheme. Employment periods are periods of employment for which no contributions were payable under the legislation of the former homelands but which would have been subject to compulsory insurance under the German statutory pension provisions in force after March 1, 1957.
If benefits are based on contribution periods they can only be paid abroad under special conditions. If they are based on employment periods they cannot be paid abroad.
Eligible persons not normally resident in the Federal Republic of Germany can only claim a benefit that is based on contribution periods under the FPL, if they have paid contributions to the Pension Insurance Scheme of the Federal Republic of Germany. This applies likewise to eligible persons in Canada.
These benefits will only be paid if, to a certain extent, contribution periods to the Pension Insurance Scheme in the Federal Republic of Germany exist.
The Supplementary Agreement enables eligible persons to make the retroactive contributions required for payment of benefits abroad. The Supplementary Agreement not only introduces a special provision for retroactive voluntary contribution but also stipulates that the payment of the benefit abroad is to be assessed on the basis of the most favourable provisions applicable in the case of benefits payable abroad in force after July 1, 1990.
The Supplementary Agreement provides for very low voluntary contributions so that the contributions periods under the FPL can be made payable to all eligible persons abroad. The monthly contribution amounts to only ¬ 43.19 (DM 84.48). Under the Supplementary Agreement contributions may neither exceed this amount nor fall below it.
Insured persons who attained age 65 before July 1, 1990 and meet the conditions under the Supplementary Agreement, will be paid retroactive benefits from as far back as July 1, 1990. The amount to be paid for the required voluntary contributions in these cases is usually lower than the amount of the resulting retroactive payment. For this purpose, the Supplementary Agreement stipulates that the amount of the voluntary contributions to be paid may be set off against the amount of any resulting benefits that are payable retroactively so that beneficiaries usually do not have to use their own resources to pay the contributions.
There are only very few exceptional cases in which the eligible persons themselves have to pay part of the contributions (additional contribution). This is always the case when the resulting benefit cannot be retroactively paid for several years.
If additional contributions are necessary in individual cases, the competent German social insurance institution will inform the claimant.
Important
In most cases, it is not necessary to make retroactive voluntary contributions from your own resources. If the resulting benefit covers the amount payable for the voluntary contributions, the social insurance institutions will not, as a matter of principle, permit the payment of contributions because of the set-off procedure.
For this reason you should not take out a loan. Wait at least until the German social insurance institutions inform you as to whether you have to make a supplementary payment.
The Supplementary Agreement will enter into force in the next few months. The German insurance institutions that are competent for the implementation of the Social Security Agreement between Germany and Canada have agreed to process applications in advance of its coming into force so that claims can be assessed as soon as possible after the coming into force of the Supplementary Agreement.
2. Eligible Persons
The Supplementary Agreement defines the conditions under which an applicant credited with contribution periods under the FPL pursuant to Article 17A FPL, can draw the benefit while residing abroad. The payment of the benefit abroad is only possible if the applicant makes retroactive voluntary contributions to a certain extent to a German pension insurance scheme.
You may pay retroactive voluntary contributions provided that:
- you are a Canadian or German citizen, a refugee within the meaning of the Geneva Convention, or a stateless person, and
- periods of contribution under the FPL first become credible for you as a result of Article 17A FPL, and
- before National Socialist influence first reached your former homeland you
- - belonged to the German language and cultural group, and
- - had already attained age 16, and
- - had not acknowledged yourself to be ethnically German because you were Jewish, and
- left the areas of expulsion within the meaning of Article 1, Paragraph 2, Number 3 of the German Federal Law on Displaced Persons (Bundesvertriebenengesetz), and
- you have become a Canadian resident before July 1, 1990.
If all these conditions are met at the same time, the personal prerequisites for the retroactive payment of voluntary contributions are met.
Note:
- It is not necessary for the insured person to be a persecutee within the meaning of the German Federal Indemnification Law (Bundesentschädigungsgesetz).
- Please refer to Section 5 for survivors' entitlement to retroactive contribution payment.
2.1 Extension of the National Socialist Sphere of Influence to the Former Homeland
Former homelands are deemed the territories specified in Article 1, Paragraph 2, Number 3 of the German Federal Law on Displaced Persons (Bundesvertriebenengesetz - see appendix). A uniform point in time for the extension of the National Socialist sphere of influence to these areas cannot be defined. As a matter of principle, a territory was covered by the sphere of influence at the date of occupation by German troops at the latest. National Socialist influence can also include measures of independent foreign states if the German government caused or contributed to such measures.
The following table gives a survey of territories and the point in time at which a National Socialist influence has to be assumed for them.
| Former homeland | Influence as from (relevant date) |
|---|---|
| Free City of Danzig | 30.01.1933 |
| Sudeten German Territories | 10.10.1938 |
| Slovakia | 14.03.1939 |
| Bohemia and Moravia | 16.03.1939 |
| Memel Territory | 23.03.1939 |
| Integrated Eastern Territories and the "Generalgouvernement" (without the districts of Bialystok und Lemberg) | 18.09.1939 |
| Hungary, Bulgaria, Rumania without Northern Bukowina and Bessarabia | 06.04.1941 |
| Northern Bukowina and Bessarabia | 06.07.1941 |
| Yugoslavian Territories - Lower Styria and Krain - Croatia - Serbia and Western Banat |
10.04.1941 30.04.1941 30.05.1941 |
| Districts Bialystok und Lemberg | 01.08.1941 |
| Estonia, Latvia, Lithuania, Belorussia, Ukraine | 01.09.1941 |
Note
It is only necessary that the National Socialist sphere of influence has been extended to the former homeland of the person who is to be credited periods under the FPL. For that reason also those persons will be eligible who already left their former homeland prior to the commencement of National Socialist influence because they had fled before that time, for example.
The point in time of influence is, however, nevertheless of importance for these persons, because only those persons are entitled to make retroactive contributions who, on that date
- had already attained age 16,
- were Jews, and
- belonged to the German language and cultural group.
2.2 Attainment of age 16
The provisions of the Supplementary Agreement will only cover those persons who had already attained age 16 on the day of the extension of National Socialist influence to their former homeland at that time. This also applies if they fled from the former homeland before the relevant date.
Example:
Former homeland: Lemberg, flight to the Soviet Union July 2, 1941.
Relevant date: August 1, 1941
The provisions apply to persons born on August 1, 1925 or earlier.
2.3 Affiliation to the German Language and Cultural Group
The provisions of the Supplementary Agreement only cover persons who, on the date of extension of National Socialist influence to their former homeland, belonged to the German language and cultural group.
Example:
Former homeland: Lemberg, flight to the Soviet Union July 2, 1941.
Relevant date: August 1, 1941
The person in question must have belonged to the German language and cultural group on August 1, 1941.
It is not necessary that the affiliation to the German language and cultural group has been continuous: it may have been abandoned or lost through assimilation into a different linguistic or cultural environment.
The German social insurance institution will determine whether an applicant belonged to the German language and cultural group on the date of commencement of that influence based on individual circumstances. An applicant for contribution or employment periods to be taken into account under the FPL will be invited to a "language test", if applicable. This "language test" will be carried out at the request of the German social insurance institution by the diplomatic representation of the Federal Republic of Germany (e.g. Consulate General) that is competent for the place of residence.
3. Retroactive Payment
The Supplementary Agreement defines for the eligible persons
- the period of retroactive contribution payment,
- the scope of retroactive contribution payment,
- the periods which may be credited with retroactively paid contributions and
- the amount of the contribution.
It also provides that applications for retroactive payment of contributions shall be filed within a certain period of time (see Section 3.7).
3.1 Period for Retroactive Payment of Contributions
Retroactive voluntary contributions may only be paid for periods
- after attainment of age 16 but not before the National Socialist sphere of influence was extended to what was then the applicant's former homeland,
- before attainment of age 65,
- that have not already been credited with contribution periods to the German pension insurance system or with contribution periods under the FPL.
3.2 Scope of Retroactive Payment of Contributions
The insured person can determine the number of contributions to be retroactively paid only within certain limits. The Supplementary Agreement stipulates that contributions may not exceed the amount necessary to permit payment of benefits based on periods credited under Article 17A FPL in accordance with the statutory pension provisions on payment of benefits to eligible persons abroad applicable on July 1, 1990.
This means:
- If, pursuant to Article 17A Foreign Pensions Law, contribution periods of less than 60 months can be taken into account, the insured may only make retroactive contributions for a number of months that exceeds the contribution periods to be taken into account under the Foreign Pensions Law by one month.
Example:
According to the Foreign Pensions Law contribution periods are to be taken into account for 37 months. Only 38 voluntary contributions may be retroactively paid; these 38 retroactive contributions ensure that the benefit also has to be paid abroad on the basis of the 37 contributions to be considered under the Foreign Pensions Law.
- If by application of Article 17A FPL, at least 60 months can be taken into account as contribution periods under the Foreign Pensions Law the insured may, at most, retroactively make the same number of retroactive voluntary contributions as the number of contributions to be taken into account under the Foreign Pensions Law. Retroactive payment of less than 60 months voluntary contributions is not permitted.
Example:
Under the Foreign Pensions Law contributions for 70 months have been taken into account.
No more than 7 voluntary contributions may be retroactively paid. These 70 retroactively paid contributions ensure that the benefit is also payable abroad from the 70 contributions to be considered under the Foreign Pensions Law.
If the insured person makes retroactive payment for 60 voluntary contributions, then only 60 contributions to be considered under the Foreign Pensions Law will be paid abroad.
The retroactive payment of contributions is only permitted if in so doing periods creditable under Article 17A FPL become payable abroad. Insured persons for whom only employment periods under the FPL can be taken into account are excluded from the retroactive payment of voluntary contributions.
3.3 Creditable Periods
Taking into account the maximum possible scope of retroactive payment, contributions may be retroactively paid in the retroactive payment period for all months that are not credited with contributions. Consequently, the following periods may also be credited with retroactively paid contributions:
- employment periods under Article 16 Foreign Pensions Law,
- child-rearing periods
- substitute periods (e.g. periods of residence abroad until December 31, 1949 as a result of National Socialist persecution measures if the insured person is a persecutee within the meaning of Article 1 German Federal Indemnification Law),
- excused periods (e.g. periods of supplementary school education after attainment of age 16 or of completed technical college or university training).
Months which are credited with
- contributions under the Foreign Pensions Law,
- other contribution periods which have to be taken into account in the German pension insurance (e.g. periods based on a previous retroactive payment, contribution periods under the laws of the former German Reich),
may not be credited with retroactive voluntary contributions.
3.4 Amount of Contribution
The Agreement defines the amount of the contributions to be retroactively paid. Contributions shall be paid in an amount of ¬ 43.19 (DM 84.48) for each calendar month.
3.5 Special Provisions
If you do not have enough creditable periods before attainment of age 65 so that despite your retroactive contributions a benefit would not become payable abroad on July 1, 1990 under the FPL a special regulation becomes applicable:
In this case, it is also possible to make retroactive voluntary contributions to a limited extent for a time after attainment of age 65.
Hence, at most a retroactive payment period from July 1, 1990 to November 30, 1991 is possible. The time from attainment of age 65 to June 30, 1990 may not be credited with voluntary contributions.
In the period from July 1, 1990 to November 30, 1991 the amount of contributions may not be greater than that which is necessary for the payment of the benefit abroad. In this context, only the question whether the benefit based on the contribution periods under the FPL can actually be paid abroad is relevant but not the amount of the benefit based on FPL credits.
Example:
The insured person attained age 65 on April 15, 1986. For the time prior to attainment of age 65 only 59 months are available for retroactive payment; the remaining time up to age 65 is fully credited with contribution periods under the FPL. The insured person is entitled to make a retroactive contribution for the month of July 1990 in order to ensure that the contribution period of 60 months under the FPL is taken into account for payment abroad. However, the date of eligibility for benefits must be deferred to July 31, 1990 so that the contribution for July 1990 can still be paid with effect for the benefit. In this case benefits shall be paid beginning August 1, 1990.
3.6 Contribution Collection
The retroactive payment of contributions serves the sole purpose of permitting a benefit based on contribution periods under Article 17A FPL to be paid abroad. For that reason the eligible person does not have any way of influencing the amount of the benefit to any major degree. Furthermore, only a standard amount of contribution may be paid and the amount required for the retroactively paid contributions can be set off against the resulting benefits.
Whenever possible, the German social insurance institutions will apply this set-off principle.
Important
In cases in which it is possible to set off the retroactive payment completely against the resulting pension payment, the social insurance institutions apply the following procedure:
As a matter of principle, crediting of creditable periods with retroactive voluntary contributions is carried out ex officio.
Crediting is carried out from age 65 or - if the insured person died prior to the attainment of age 65 - from the date of death respectively back to the past:
- first of all, all gaps that exist in the insurance record are credited,
- then employment periods under Article 16 FPL are credited,
- then child-rearing periods are credited,
- then substitute periods are credited,
- then excused periods are credited.
If the applicant requests a different distribution of the retroactive voluntary contributions, he must inform the competent social insurance institution in due time.
3.7 Application and Application Period
An application to make retroactive contributions must be filed within 24 calendar months following the entry into force of the Supplementary Agreement (preclusive period).
The application to make retroactive contributions shall be considered at the same time as a timely filed application for benefits for the person applying for retroactive payment.
Since the Supplementary Agreement was not yet in force when this explanatory leaflet was published, the time limit for filing applications has not yet been fixed.
Prior to the coming into force of the Supplementary Agreement applications for retroactive payment can be submitted, but they will only be rendered effective after the Supplementary Agreement has entered into force.
Retroactive payment may be applied for without requirements as to form. However, the name, the name at birth, the date of birth, the place of birth, as well as the address of the applicant must be stated. If the application is made by the survivors, the name, name at birth as well as the date and place of birth of the insured person are to be stated.
If a German benefit is already being drawn or if a benefit has been applied for at a German pension insurance institution, the application for payment of retroactive contributions must be filed with said institution.
In all other cases the application for retroactive payment must be filed with
- Landesversicherungsanstalt Freie und Hansestadt Hamburg
Postfach 70 11 25
D-22011 Hamburg,if the insured person was last employed as a manual worker;
- Bundesversicherungsanstalt für Angestellte
D-10704 Berlin,if the insured person was last employed as a salaried employee;
- Bundesknappschaft
D-44781 Bochum,if the insured person was (also) employed in the mining industries;
- Seekasse
Postfach 11 04 89
D-20404 Hamburg,if the insured person was last employed in the maritime shipping or sea fishing industries;
- Bahnversicherungsanstalt
Karlstraße 4 - 6
D-60329 Frankfurt am Main,if the insured person was last employed in the railroad industries.
Jurisdiction will be determined by the last contribution paid by the insured to the German pension insurance scheme. If the last contribution to be taken into account is a contribution under the Foreign Pensions Law, the jurisdiction of the aforementioned German pension insurance institutions is determined by the type of employment that served as the basis for the last contribution to be taken into account under the Foreign Pensions Law.
In order to comply with the application period, the application can also be filed with
- International Operations
Income Security Programs
Social Development Canada
Ottawa ON K1A 0L4
Canada - any consular office of the Federal Republic of Germany.
4. Benefits
4.1 Principles for the Calculation of Benefits under the Supplementary Agreement
The following principles shall be applied in the calculation of benefits:
- For the purpose of the establishment of the eligibility criteria and the calculation of the benefit amount, the statutory pension provisions applicable in the territory of the Federal Republic of Germany without the Acceding Territory (Beitrittsgebiet) on July 1, 1990 including the provisions on benefit payments to eligible persons abroad shall be applied. With the exception of the FPL the law that was applicable when the event giving rise for eligibility occurred normally applies.
- The Foreign Pensions Law shall be applied in its version in force on July 1, 1990.
- The benefit to which the claimant is entitled is established according to a procedure that considers the legal position applying from January 1, 1992 based on the statutory pension provisions in force on July 1, 1990.
- Pensions are retroactively paid beginning July 1, 1990 at the earliest.
For the establishment of benefits the provisions of the Social Security Agreement between Germany and Canada shall be applied as well. This concerns, in particular, the following provisions:
- Aggregation of the insurance periods completed in the German pension insurance scheme and Canadian Social Security and Canadian residence periods respectively for purposes of meeting the eligibility conditions.
- Payment of benefits based on the special provisions on the payment of contribution periods and employment periods under the Foreign Pensions Law as well as of other contribution periods not completed in the territory of the Federal Republic of Germany of October 2, 1990, to the following persons with habitual residence in Canada:
Canadian nationals, Germans, refugees, and stateless persons as well as the survivors of these persons without taking into account the latter's nationality.
4.2 Commencement of the Old-age Benefit
The Supplementary Agreement contains special regulations concerning the commencement of the pension payment:
As a rule, benefits shall be paid beginning with the calendar month following the month in which the event giving rise for eligibility occurs. If the event giving rise for eligibility occurred before July 1, 1990 and if the benefit eligibility requirements are met, the benefit shall be paid from July 1, 1990. If the event giving rise for eligibility occurred after June 30, 1990, the benefit shall be paid beginning with the calendar month that follows the month in which the event giving rise for eligibility occurred and in which the benefit eligibility requirements applicable on July 1, 1990, are met.
4.3 Calculation of the Old-age Benefit
The old-age benefit is determined in several steps, which are briefly described below.
4.3.1 First Step
The benefit is first computed on the basis of the statutory pension provisions applicable on July 1, 1990 in the territory of the Federal Republic of Germany without the Acceding Territory (Beitrittsgebiet) including the provisions on benefit payment to eligible persons abroad and the Social Security Agreement between Germany and Canada. The benefit is converted into remuneration points (Entgeltpunkte) in accordance with the statutory pension provisions applicable on January 1, 1992 (Volume VI of the German Social Insurance Act - SGB VI -).
In this calculation the retroactive voluntary contributions are assessed by taking into account the relevant preliminary average remuneration for the year 1994.
4.3.2 Second Step
For the contribution periods payable abroad that can be taken into account because of the affiliation to the group of persons in accordance with Article 17A FPL, personal remuneration points (persönliche Entgeltpunkte) have to be determined. The assessment that results directly from the FPL is to be used for the contribution periods that are to be considered under Article 17A FPL.
These remuneration points are the basis for determining the benefit that can be paid to the insured person abroad.
The monthly partial amount of the personal remuneration points for the contribution periods under Article 17A FPL to be paid abroad is determined as follows:
| Period of benefit receipt | Personal remuneration points for contribution periods under Article 17A FPL payable abroad multiplied by1 |
|---|---|
| 01.07.1990 to 31.12.1990 | 15.96 DM |
| 01.01.1991 to 30.06.1991 | 18.36 DM |
| 01.07.1991 to 31.12.1991 | 21.11 DM |
| 01.01.1992 to 30.06.1992 | 23.57 DM |
| 01.07.1992 to 31.12.1992 | 26.57 DM |
| 01.01.1993 to 30.06.1993 | 28.19 DM |
| 01.07.1993 to 30.06.1994 | 0.7 x 44.49 DM |
| 01.07.1994 to 30.06.1995 | 0.7 x 46.00 DM |
| 01.07.1995 to 30.06.1996 | 0.7 x 46.23 DM |
| 01.07.1996 to 30.06.1997 | 0.7 x 46.67 DM |
| 01.07.1997 to 30.06.1998 | 0.7 x 47.44 DM |
| 01.07.1998 to 30.06.1999 | 0.7 x 47.65 DM |
| 01.07.1999 to 30.06.2000 | 0.7 x 48.29 DM |
| 01.07.2000 to 30.06.2001 | 0.7 x 48.58 DM |
| 01.07.2001 to 31.12.2001 | 0.7 x 49.51 DM |
| 01.01.2002 to 30.06.2002 | 0.7 x 25.31406 EUR |
| from 01.07.2002 | 0.7 x 25.86 EUR |
1Between July 1, 1990 and June 30, 1993, the values correspond to the present pension value (East) and from July 1, 1993 the present pension value multiplied by 0.7 is relevant.
4.3.3 Third Step
In the third step remuneration points for the retroactive contributions are to be determined. Remuneration points for retroactive contributions can only be determined as far as they are still contained as remuneration points for retroactively paid contributions in the remuneration points which have been determined in the first step.
When computing the benefit after Step 1, it may occur that the voluntary contributions are no longer included in the remuneration points. This applies if during the retroactive payment period there are not enough genuine gaps to be credited with retroactive voluntary contributions. In this case, also other periods - except for contribution periods - which, in turn, already have an impact on the benefit may be credited with retroactive voluntary contributions (see Section 3.3, Creditable Periods).
The retroactive voluntary contributions are no longer contained in the remuneration points under Step 1 if they are
- paid for a month that is also credited with a child-rearing period. The child-rearing period results in a higher benefit.
- paid for a month that is already credited with an excused period, if the consideration of said period results in a higher benefit.
After Step 1, the retroactive contributions are no longer included in the remuneration points if they are made for a calendar month that is credited with a substitute period. In this case, the voluntary contribution is paid in the form of a supplementary insurance contribution. The supplementary insurance benefit accrues in addition to the benefit.
In order to determine the monthly partial amount, the personal remuneration points for the retroactive voluntary contributions up to June 30, 1995 are multiplied by the present pension value of DM 46.00. For the period as from July 1, 1995 the present pension values are shown in the table in Section 4.3.4 below.
4.3.4 Fourth Step
In the fourth step the remaining personal remuneration points are determined.
The remaining personal remuneration points are obtained by deducting the remuneration points resulting from steps 2 and 3, from the personal remuneration points that can be taken into account at the most (Step 1).
The monthly partial amount from the remaining personal remuneration points is determined as follows:
| Period of benefit receipt | Remaining personal remuneration points multiplied by the present pension value |
|---|---|
| 01.07.1990 to 30.06.1991 | 39.58 DM |
| 01.07.1991 to 30.06.1992 | 41.44 DM |
| 01.07.1992 to 30.06.1993 | 42.63 DM |
| 01.07.1993 to 30.06.1994 | 44.49 DM |
| 01.07.1994 to 30.06.1995 | 46.00 DM |
| 01.07.1995 to 30.06.1996 | 46.23 DM |
| 01.07.1996 to 30.06.1997 | 46.67 DM |
| 01.07.1997 to 30.06.1998 | 47.44 DM |
| 01.07.1998 to 30.06.1999 | 47.65 DM |
| 01.07.1999 to 30.06.2000 | 48.29 DM |
| 01.07.2000 to 30.06.2001 | 48.58 DM |
| 01.07.2001 to 31.12.2001 | 49.51 DM |
| 01.01.2002 to 30.06.2002 | 25.31406 EUR |
| from 01.07.2002 | 25.86 EUR |
4.3.5 Eligible Benefits
The monthly benefit payable abroad results from the aggregation of the partial amounts resulting from Steps 2, 3 and 4.
The monthly benefit is increased by the supplementary insurance benefits if retroactive voluntary contributions are paid under the Supplementary Agreement for which substitute periods are to be credited (see Section 4.3.3).
Example
The benefit for the month of July 1990 is to be computed:
| Personal remuneration points | Relevant present pension value | Benefit | ||
|---|---|---|---|---|
| Step 1 | Personal remuneration points converted as of 01.01.1992 | 5.6262 | ||
| Step 2 | Personal remuneration points for contribution periods payable under Article 17A FPL | - 4.3016 x 15.96 DM = 68.65 DM | ||
| Step 3 | Personal remuneration points for retroactive voluntary contributions | - 0.5100 x 46.00 DM = + 23.46 DM | ||
| Step 4 | Remaining personal remuneration points | = 0.8146 x 39.58 DM = + 32.24 DM | ||
| Step 5 | Monthly benefit for July 1990 | DM 124.35 equals ¬ 63.58 |
||
4.4 Application for Benefits
An application for retroactive payment will be considered a timely filed application for benefits (see Section 3.7). In order to establish the benefit claim, benefit application forms must be completed.
These can be obtained free of charge from:
- Social Development Canada
- the competent German social insurance institution (for addresses, see Section 3.7).
4.5 Establishment of Benefits
As shown in Section 3, the claimant cannot determine the amount of the voluntary contributions, this is defined in a binding manner in the Supplementary Agreement. Nor can the claimant determine the number of voluntary contributions since the number of voluntary contributions that may be retroactively paid at the most is determined by the Supplementary Agreement. The claimant can at best decide to make fewer retroactive contributions than admissible. If fewer contributions than possible are to be retroactively paid, then the claimant is required (see Section 3.6) to inform the competent social insurance institution in due time.
The social insurance institutions are very interested in ensuring that all eligible persons receive their pension assessment notice and thus the benefit they are entitled to as soon as possible.
By applying the set-off procedure (compare Section 3.6) in most cases the social insurance institutions are able to issue the pension assessment notice after establishment of the insurance record, i.e. as a rule after recognition of the contribution and employment periods under the Foreign Pensions Law. In most cases a lengthy contribution procedure can be avoided that delays the notification and thus the payment of the benefit.
This procedure does not affect the rights of the claimant. Objections can be made within the time limit for filing an appeal.
5. Survivors
If survivors of an insured person eligible under the Supplementary Agreement (see Section 2) assert claims, a distinction has to be made between two cases:
- The insured person died during the application period without having made an application for retroactive payment of contributions under the Supplementary Agreement. The rights of such survivors are described in Section 5.1.
- The insured person dies after having made an effective application for retroactive payment of contributions under the Supplementary Agreement. The rights of these survivors are described in Section 5.2.
The survivors are deemed the widow or the widower as well as the children of an insured person entitled to orphan's benefits. Claims to survivors' benefits exist under certain additional circumstances for the previous spouse of an insured person if the marriage ended in divorce or was dissolved or declared void prior to July 1, 1977. In cases in which the widow or the widower has remarried and this marriage has been dissolved or declared void, retroactive contributions under the Supplementary Agreement can be made as well.
5.1 The Insured Person Died During the Application Period Without Having Made an Application for Retroactive Payment
If the insured person died before expiration of the application period (at the time of the publishing of this leaflet, the time limit for filing applications has not yet been fixed), the survivors can apply for retroactive payment of contributions as described in Section 3 until the expiration of the application period in order to establish, for themselves, the prerequisites for payment of a survivor's benefit. The application for retroactive payment of contributions is deemed an application for a survivor's benefit.
The only determining factor is that the death of the insured person has occurred prior to the expiration of the application period. Deaths, e.g. in 1975, do not exclude the right to retroactive payment.
In order to transfer the special benefits stipulated for the insured persons to the survivors as far as the calculation of benefits is concerned (see Section 4) it is provided that at least the personal remuneration points of the insured person, which would have resulted in an old-age benefit before January 1, 1992, must be used as the basis.
A survivor's benefit shall be paid from the date of death of the insured person if a benefit was not payable to the insured for the month of death. If a benefit was payable to the insured for the month of death, the survivors' benefit shall be paid beginning with the month following the month of death. If eligibility for benefits in the event of death has occurred before July 1, 1990 and if the benefit eligibility requirements applicable on July 1, 1990 are met, the benefit shall be paid from July 1, 1990.
5.2 The Insured Person Dies After Having Made an Effective Application for Retroactive Payment Under the Supplementary Agreement
This section deals with cases in which the insured person has effectively filed the application for retroactive payment under the Supplementary Agreement.
- The application is deemed to have been effectively filed if it has been received by an institution that is competent for adjudicating the benefit claim after the entry into force of the Supplementary Agreement.
- The application is likewise deemed to have been effectively filed if it has been filed prior to the entry into force of the Supplementary Agreement and if the insured person was still alive on the entry into force of the Supplementary Agreement.
The effectively filed application of the insured person for retroactive payment is also deemed an application for a contributor's benefit. The survivors of the insured person are, therefore, entitled to continue both the retroactive payment procedure and the procedure concerning the contributor's benefit.
Note
To avoid any legal disadvantages regarding the date of commencement of the benefit and the amount of benefit, the survivors should submit the application for survivors' benefits immediately following the insured's death. The commencement of the survivors' benefits does not depend on the favourable provision of the Supplementary Agreement but solely on SGB VI.
Submitting an application in time is of importance for the commencement of the survivors' benefit. According to SGB VI the benefit shall be paid beginning with the expiration of the month of death of the contributor, if the benefit is paid retroactively until and including the month of death. If the survivors' benefit is applied for too late it will only be backdated for 12 calendar months before the month in which the application for a benefit was filed.
The survivors' benefit is at least to be based on the personal remuneration points of the deceased insured. A precondition is that the survivors' benefit commences 24 calendar months after the insured's death at the latest.
6. New Establishment of Benefits
If an insured person or a survivor of an insured person already receives a benefit and if contribution periods under the FPL are added to this benefit for the first time by application of Article 17A FPL, a retroactive payment and a new establishment of the benefit under the Supplementary Agreement is possible.
The comments in this special explanatory leaflet apply mutatis mutandis to insured persons and survivors who already receive a benefit.
Appendix
- Article 17A Foreign Pensions Law - FPL - in the version of the Pension Reform Act 1992 reads as follows:
The provisions of the Law that are relevant for the statutory pension insurance shall also apply to:
- Persons who up to the point in time when the National Socialist sphere of influence extended to their homeland at that time,
- belonged to the German language and cultural group,
- had already attained age 16, and
- had not acknowledged themselves to be ethnically German because they were Jewish, and left the areas of expulsion within the meaning of Article 1, Paragraph 2, Number 3 of the German Federal Law on Displaced Persons,
- Survivors of the persons mentioned in letter a), with a view to the granting of survivors' benefits.
- Persons who up to the point in time when the National Socialist sphere of influence extended to their homeland at that time,
- Article 1, Paragraph 2, Number 3 of the German Federal Law on Displaced Persons in the version valid on July 1, 1990 reads as follows:
Expellees shall also be deemed those persons who have left or leave the German Eastern territories then under foreign administration, Gdansk, Estonia, Latvia, Lithuania, the Soviet Union, Poland, Czechoslovakia, Hungary, Rumania, Bulgaria, Yugoslavia, Albania or China as German nationals or ethnic Germans after termination of the general expulsion measures prior to July 1, 1990 or thereafter for the purposes of reception, unless they have established their place of residence in these territories after May 8, 1945 without having been expelled from these territories or having returned there by March 31, 1952 (repatriates).