FAQs for company pensioners and allowance beneficiaries – Frequently asked questions
If you have questions regarding company pensions or are the policyholder of a “Riester” policy, you can read our answers to FAQs here. You may find what you are looking for.
You will find frequently asked questions (FAQs) regarding pension payment here: FAQs regarding the state pension
Questions regarding the Gesetzliche Krankenversicherung – Betriebsrentenfreibetragsgesetz (GKV-BRG – German statutory health insurance company pension allowance law)
- What changes does the GKV-BRG include?
Effective January 1, 2020, contributions to the statutory health insurance scheme were reduced for pensioners through introduction of an “allowance”. Starting in 2020, contributions will only be levied on company pensions above the monthly allowance limit of €159.25. Health insurance fund contributions must only be paid on the amount exceeding this allowance, at the contribution rate valid for the health insurance fund.
- Are company pensions from Deutsche Post DHL affected by this change?
Yes, pensioners who receive a company pension from Deutsche Post DHL and are covered by compulsory insurance in the statutory health insurance scheme for pensioners (KVdR) will benefit from this reduction.
- When can Deutsche Post Renten Service take this allowance into account?
When the allowance can be implemented depends on whether or not the pension recipient draws only one company pension or also additional company pensions.
In July or August, we will retroactively offset the excess health insurance fund contributions withheld in 2020 from those who receive only one company pension.
We must wait for notifications from the health insurance funds for pension recipients who draw more than one company pension. For this group of people, the health insurance funds will inform us if and in what amount the allowance is to be taken into account. The necessary notification procedure between the health insurance funds and Deutsche Post Renten Service has been adjusted for this purpose. It will go into effect in the new, modified form in October 2020. Not until then, as soon as we have the required notifications from the health insurance funds, can we perform retroactive accounting for 2020 and take the allowance into account for current company pension payments.
- Does the allowance also apply to the contribution to long-term care insurance?
No, the allowance only applies to the health insurance contribution. The contribution to long-term care insurance will not change for pension recipients who are covered by compulsory insurance in the statutory health insurance scheme for pensioners (KVdR).
- Can the company pension be changed retroactively?
Since this is a key-date regulation, the allowance will be taken into account effective January 1, 2020. Prior timeframes will not be affected by the allowance.
- Is the allowance also applicable to pensioners who are voluntarily insured through the statutory health insurance system?
No. The allowance is valid only for pensioners who are covered by compulsory insurance in the statutory health insurance scheme for pensioners (KVdR). The allowance cannot be applied to pensioners who are voluntary members of the statutory health insurance system.
Please note that the existing exemption limit for contribution to long-term care insurance will still be taken into account. The exemption limit remains unaffected by the new GKV-BRG provisions. It is applicable only to pension recipients who are covered by compulsory insurance in the statutory health insurance scheme for pensioners (KVdR).
- How will the exemption limit be calculated if I have multiple pensions?
The allowance will be deducted from the sum of monthly income from company pensions as of January 1, 2020. If several company pensions are drawn, the allowance will only to be taken into account once. The health insurance funds are responsible for determining which insurance carrier will take the allowance into account.