Controversial plans: What about the basic pension need to know

On a few projects, arguing the coalition as much as on the basic pension. All the wanted this add-on to the basic security with minimum pensions for the long-te

Controversial plans: What about the basic pension need to know

On a few projects, arguing the coalition as much as on the basic pension. All the wanted this add-on to the basic security with minimum pensions for the long-term Insured, however, the ideas diverged. How many will get it, and how it is examined, who is in need? Now, the final consultation in the Bundestag is still before the summer break. On Friday, the Federal Council could follow. Here are answers to the main questions:

Who should come to get a basic pension?

In the start of the year 2021, around 1.3 million people, of which 70 percent are women. It's about people with very low pensions, which have at least 33 years of pension contributions from employment, child-rearing or care-giving. You going to the social services Department should be spared. The Supplement should be staggered, in the case of 35 years of contribution, he should reach full height. Basic pension only to those with income under certain limits are to get. Even those who should not receive the basic pension, their Wages were often only the importance of a supplementary income, for example, through mini-jobs, writes of the Bundestag's press service.

How to determine who should get the contract?

First of all, a comprehensive need assessment in the coalition agreement of the CDU and the SPD have been agreed upon. However, the SPD refused to do so. Now, there should be an income test. The data adjustment for the income test will automatically fold between the pension system and the financial authorities. Do not need to apply for the basic pension also. The pension scheme receives, in the first years at least, much to do, in order to examine whether people who already receive a pension, will also receive the premium. Therefore, it is expected that there is a delay in payment, possibly by the end of 2022. This will then be used retroactively.

How high is the planned income limits?

The full impact only those whose monthly income as a retiree at a maximum of 1250 Euro (single) and $ 1950 (spouses or life partners). Income in excess of this limit shall be counted to 60 percent to the basic pension. At 1300 Euro income for a Single 50 Euro would contribute 60 percent of the basic pension would be 30 Euro lower. Income in excess of 1600 or 2300 euros to be credited to the full 100 percent to the basic pension Supplement Has a couple, for example, 2400 Euro of income, the basic pension of 100 euros.

What should be taken into account in the income test?

The tax-income-free part of annuities, and taxable income such as through rent, Pension, or amounts of occupational or personal Pension. Also, investment income above the Savings allowance is to be credited. Pensioners must notify the pension insurance relevant income. Advertising costs and expenses for health and nursing care insurance are deducted. Information about the taxable income is not available in the rule only for the that precedes the genes of the year, new pensioners get the basic pension in the first year, therefore, may be only once – the income test should be repeated once a year.

How does the calculation exactly?

In principle, be upgraded to the pay points, the pension total will be calculated. An average earner gets a year such a point. For each point, there is since 1. July in the West with a height of 34.19 Euro pension, and in the East of the 33.23 euros per month. For times with low pension entitlements, the trigger, the basic pension will be increased by the earnings points: Namely, for 35 years to Double the average value of the acquired points – but to a maximum of 0.8 points.

Updated Date: 02 July 2020, 11:20

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