45th Detailed Report
on the Implementation of the
European Code of Social Security
as amended by its Protocol (Article 74)
Detailed Report submitted by the Government of the Federal Republic of Germany
for the period from 1 July 2015 to 30 June 2016
Germany has ratified all parts of the European Code as amended by its Protocol.
as well as
Report
submitted by the Government of the Federal Republic of Germany
for the period from 1 May 2011 to 30 April 2016
in accordance with Article 22 of the Constitution of the International Labour Organisation concerning the implementation of the
Social Security Convention
(Minimum Standards), 1952,
whose ratification by the Federal Republic of Germany was registered on 21 February 1958,
the
Employment Injury Benefits Convention, 1964,
whose ratification by the Federal Republic of Germany was registered on 1 March 1972,
the
Invalidity, Old-Age and Survivors' Benefits Convention, 1967,
whose ratification by the Federal Republic of Germany was registered on 15 January 1971 and
the
Medical Care and Sickness Benefits Convention, 1969,
whose ratification by the Federal Republic of Germany was registered on 8 August 1974.
Unless otherwise expressly stated, the Articles quoted in the present report refer to ILO Convention No. 102.
On Part I
The provisions of the Convention are mainly implemented through the regulations of the Social Code, notably through
The provisions equally apply to seamen and sea fishermen.
On Part II
Medical Care
On Article 9 (or Articles 10 and 12 of Convention 130)
A. The provision of subparagraph (a) is applied.
B. With regard to the group of persons protected in accordance with Article 9 of ILO Convention No. 102 and Articles 10, 12 of ILO Convention No. 130, reference is made to the previous reports (last detailed report no. 40 and general reports nos. 41 to 44). Compared with the last report, the following changes in legislation were made during the period under review:
1. Income thresholds
The general annual earnings threshold up to which workers and salaried employees are subject to compulsory coverage in the statutory health insurance is 56,250 euros in 2016 (section 6 (6) of SGB V). The special annual earnings threshold for employees who had private health insurance coverage on 31 December 2002 is 50,850 euros in 2016.
general annual earnings special annual earnings
threshold threshold
for calendar year 2012 50,850 euros 45,900 euros
for calendar year 2013 52,200 euros 47,250 euros
for calendar year 2014 53,550 euros 48,600 euros
for calendar year 2015 54,900 euros 49,500 euros
for calendar year 2016 56,250 euros 56,250 euros
The earnings threshold up to which spouses and children of insured persons are covered as family members under section 10 of SGB V provided they do not have their own insurance coverage, are not exempt from insurance or self-employed on a full-time basis is 415 euros in 2016. For marginal employment, the earnings threshold amounted to 450 euros in the period under review (400 euros until 2012).
total earnings earnings threshold
threshold marginal employment
for calendar year 2012 375 euros 400 euros
for calendar year 2013 385 euros 450 euros
for calendar year 2014 395 euros 450 euros
for calendar year 2015 405 euros 450 euros
for calendar year 2016 415 euros 450 euros
2. Act to Further Develop the Financial Structure and Quality of the Statutory Health Insurance System (GKV-Finanzstruktur- und Qualitäts-Weiterentwicklungsgesetz)
On 1 January 2016 legislation became effective that makes all employable persons who are entitled to benefits under SGB II and in receipt of unemployment benefit II subject to compulsory coverage in the statutory health and long-term care insurance systems (section 5 (1), number 2a, of SGB V), unless they have private health and long-term care insurance coverage or can be attributed to the system of private health and long-term care insurance. If a person receives unemployment benefit II, insurance as a family member according to section 10 of SGB V no longer takes priority over compulsory coverage in the statutory health insurance system. Insurance as a family member is no longer possible for recipients of unemployment benefit II who are not subject to compulsory coverage in the statutory health insurance system because they had private health insurance coverage before the receipt of benefits or can be attributed to the system of private health insurance.
For persons in receipt of unemployment benefit II, new regulations have been introduced and apply to their income that is liable to contributions. Accordingly, 0.2060 times the monthly reference value is considered to be these persons' income that is liable to contributions. A special regulation provides that contrary to the principle of contribution payments per calendar day, contributions for unemployment benefit II recipients are to be paid for each calendar month in which the person had statutory health insurance coverage for at least one day.
3. Act to Strengthen Care Provision in the Statutory Health Insurance System (GKV-Versorgungsstärkungsgesetz)
According to section 5 (5) of SGB V, persons who are self-employed on a full-time basis are not subject to compulsory coverage in the statutory health insurance system according to section 5 (1), no.1 or nos. 5 to 12 of SGB V. With the Act to Strengthen Care Provision the legislator reacted to a ruling of the Federal Social Court and created a legal basis that is meant to help statutory health insurance funds in determining whether a person is self-employed on a full-time basis by properly assessing their role as employers. A new regulation was introduced in section 5 (5) of SGB V which provides that full-time self-employment is presumed if a person regularly employs at least one employee to a more than marginal extent.
C. (Art. 76 Title I)
|
1. |
Number of protected employees (in 1000s) |
2011 |
2012 |
2013 |
2014 |
2015 |
|
a) general system |
31.354 |
31.822 |
32.255 |
32.693 |
33.143 |
|
|
b) special system for civil servants |
1.102 |
1.129 |
1.178 |
1.587 |
1.695 |
|
|
c) total |
32.456 |
32.951 |
33.433 |
34.280 |
34.838 |
|
|
2. |
total number of employees (in 1000s) |
34.011 |
34.602 |
34.961 |
35.524 |
35.959 |
|
3. |
Number of protected employees as percentage of total number of employees |
95.4 |
95.2 |
95.6 |
96.5 |
96.9 |
Explanatory comments:
The data (annual averages) are based on the statistics of the statutory health insurance system (general system), those relating to civil servants and the total number of employees on the national accounts.
The number of protected employees includes the number of voluntarily insured members of the health insurance funds who are entitled to sickness benefits after a period of six weeks and persons exclusively engaged in marginal employment who are covered by the statutory health insurance. The numbers of seamen and of unemployed persons with a 100 per cent protection are not included in the data.
On Article 10 (or Article 14 of Convention 130)
A. Persons insured in the statutory health insurance system are entitled to treatment during sickness in accordance with sections 27 to 43c of SGB V if such treatment is necessary to identify a disease, to cure it, to prevent its aggravation or to alleviate disease-related pain and suffering. Treatment during sickness includes:
1. medical treatment including psychotherapy as medical and psychotherapeutic treatment,
2. dental treatment including the provision of dentures,
3. provision of medicines, bandages, therapeutic remedies and aids,
4. domestic nursing care and home help,
5. hospital treatment,
6. medical and supplementary rehabilitation benefits as well as tolerance testing and work therapy.
In the event of pregnancy and maternity, they are entitled to the following benefits under sections 24c to 24i of SGB V:
1. medical care and assistance by a midwife,
2. provision of medicines, bandages, therapeutic remedies and aids,
3. out-patient or in-patient delivery,
4. domestic care,
5. home help,
6. maternity benefits.
B. The regulations on co-payments to be made by insured persons are laid down in sections 31 (3), 32 (2), 33 (2), 37 (5), 38 (5), 39 (4), 40 (6), 41 (3) and 60 (2) of SGB V.
As a rule, co-payments amount to 10 percent of the pharmacy retail price, but at least to 5 euros and at most to 10 euros. No insured person is required to pay more than the costs of the relevant product, however.
Special co-payment regulations apply to in-patient treatment (in-patient prevention and rehabilitation as well as hospital treatment including follow-up treatment), therapeutic remedies, domestic nursing care and transport costs.
For in-patient treatment, insured persons are required to make a co-payment of 10 euros per calendar day. In case of hospital treatment and follow-up treatment, co-payments are limited to 28 days per calendar year. In other cases, e.g. when medicines, bandages, therapeutic remedies and aids are needed, insured persons have to make co-payments in the amount of 10 percent but of at least 5 euros and at most 10 euros. No insured person is required to pay more than the costs of the relevant product, however. In case of therapeutic remedies and domestic nursing care, co-payments amount to 10 percent of the costs and 10 euros per prescription. As a rule, children are exempt from co-payments before the completion of age 18. The only exception concerns co-payments towards transport costs that have to be made also by insured persons who are not yet of age.
A hardship clause ensures that sick persons and persons with disabilities receive full medical care but are not unduly burdened by co-payments. The co-payments every insured person is required to make per calendar year are limited to 2 percent of the annual gross income to cover their living expenses (so-called hardship clause). There is a special regulation for chronically ill persons. In derogation from the principle of co-payments of 2 per cent per calendar year, a limit of 1 per cent of the annual gross income to cover their living expenses applies to this category of persons. Insured persons whose co-payments have reached this limit in a given calendar year can get an exemption from their health insurance fund for all co-payments for the rest of that year.
C. In case of pregnancy-related problems and in the context of delivery, the co-payment regulations under section 24e, second sentence, of SGB V do not apply to the provision of medicines, bandages, therapeutic remedies and aids so that the affected persons are exempt from any co-payment requirements.
On Article 11 (or Article 15 of Convention 130)
There is no qualifying period for medical benefits in the statutory health insurance system.
On Article 12:
Medical benefits are granted to persons with statutory health insurance coverage without any limitations on time.
On Part III
Sickness Benefit
On Article 15 (or Article 19 of Convention 130)
As a rule, all wage-earners, salaried employees and persons gainfully employed for the purpose of their vocational training are compulsorily insured under the statutory health insurance system and entitled to sickness benefit under section 44 of SGB V.
Excluded from such entitlement, however, are employees who, in the case of incapacity for work, are not entitled to the collectively agreed six weeks’ continued payment of wages. But according to section 44 (2), no. 3, of SGB V, these persons have the possibility to declare that their membership shall also include an entitlement to sickness benefit.
On Article 16 (or Article 22 of Convention 130)
In the following, the amount of sickness benefit is calculated pursuant to Article 65 (Titles I and II):
A. Pursuant to sections 44 and 47 of SGB V, insured persons who are incapacitated for work on account of sickness are entitled to sickness benefit amounting to 70 percent of their previous regular earnings and income from work insofar as it is subject to the calculation of contributions (benefit assessment ceiling), but not exceeding 90 percent of the net earnings calculated pursuant to section 47 (2) of SGB V.
If a person received one-off payments subject to contributions during the previous twelve calendar months, the regular earnings are increased by one 360th of these one-off payments. The total amount of sickness benefit must not exceed 100 percent of the last net earnings excluding one-off payments.
The monthly benefit assessment ceiling (maximum limit) for the assessment of sickness benefit amounted to 4,125 euros in 2015. In 2016, it amounts to 4,237.50 euros.
On Article 17 (or Article 25 of Convention 130)
Persons subject to compulsory coverage in the statutory health insurance are entitled to sickness benefit without having to complete a qualifying period.
On Article 18 (or Article 26 of Convention 130)
Section 48 of SGB V provides for an unlimited entitlement to sickness benefit. In case of incapacity for work on account of the same illness, however, sickness benefit is granted for a maximum of 78 weeks within three years from the day of the beginning of incapacity for work.
As long as insured persons have earnings or income from work subject to contributions, their entitlement to sickness benefit is suspended (section 49 of SGB V).
On Article 27 of Convention 130
The funeral allowance, previously provided as a statutory health insurance benefit, was abolished in 2004. Every insured person can, however, take out private insurance to cover funeral costs. The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) is the authority responsible for the supervision of private insurance contracts.
On Part IV
Unemployment Benefit
On Article 20:
Basically, there have been no changes in the period under review as regards the eligibility requirements for unemployment benefit.
Regarding disqualification periods imposed for instance when a claimant refuses to take up an acceptable job offer by the employment agency, no changes were made neither to the law itself nor to the way in which it is applied.
On Article 21:
In the period under review, there were no changes concerning the groups with mandatory or optional insurance coverage.
C. (Art. 76 Title I)
|
1. |
Number of protected employees (in 1000s) |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
a) general system |
29,314 |
29,986 |
30,611 |
30,952 |
31,513 |
32,068 |
|
|
2. |
total number of employees (in 1000s) |
34,412 |
34,913 |
35,428 |
35,804 |
36,257 |
36,662 |
|
3. |
Number of protected employees as percentage of total number of employees |
85.2 |
85.9 |
86.4 |
86.4 |
86.9 |
87.5 |
On Article 22:
There were no changes in the calculation of unemployment benefit in the period under review.
For the year 2016, the contribution assessment ceiling, which is adjusted according to gross wage developments, was fixed at 6,200 euros per month for western Germany and at 5,400 euros per month for eastern Germany.
On Article 23:
In the period under review, there were no changes concerning the "qualifying period" as defined in the Convention (Article 1 (1) (f)) and the "Anwartschaftszeit" as defined in section 142 of SGB III.
On Article 24:
The length of entitlement to unemployment benefit continues to be linked to the length of the insurance period and increases with the age of the unemployed person in the same way as before (section 147 of SGB III).
|
After compulsorily insured employment of …..months in total |
and upon completion of age …. |
........ months |
|
12 16 20 24 30 36 48 |
50 55 58 |
6 8 10 12 15 18 24 |
For the category of people with predominantly short spells of employment the length of entitlement to unemployment benefit is as follows:
- after an insurance period of 6 months 3 months,
- after an insurance period of 8 months 4 months,
- after an insurance period of 10 months 5 months.
On Part V
Old-age Benefit
On Article 26 (or Article 15 of Convention 128)
Insured persons are entitled to a pension provided the minimum period of coverage for the respective pension (qualifying period) has been completed and the relevant insurance and personal requirements are met. Old-age pensions include:
- standard old-age pensions for insured persons aged 65 and over (the age limit is gradually increased to 67 for people born in the years 1947 to 1964),
- old-age pensions for persons with a long insurance record payable at age 63,
- old-age pensions for persons with severe disabilities aged 60 and over (the age limit is gradually increased to 62 for people born in the years 1952 to 1964),
- old-age pensions for persons with a particularly long insurance record aged 63 and over (the age limit is gradually increased to 65 for people born in the years 1953 to 1964),
- old-age pensions on account of unemployment or following part-time work for older employees payable at age 63 (only for persons born before 1952),
- old-age pensions for women payable at age 60 (only for persons born before 1952),
- old-age pensions for miners with many years of work underground payable at age 60 (the age limit is gradually increased to 62 for people born in 1952 and later).
Against the backdrop of demographic trends characterized by an increasing life expectancy and low birth rates, age limits have been raised gradually since 1 January 2012. With effect from 1 July 2014, the Act on Improvements in Pension Insurance Benefits introduced a new option for persons with a particularly long insurance record. These persons who have contributed to stabilizing the pension insurance system over 45 contribution years (including periods of unemployment) are now able to retire upon completion of age 63 without deductions. The pension age that allows early retirement without deductions is gradually increased to age 65.
In general, it is possible to draw these pensions earlier (with the exception of standard old-age pensions and old-age pensions for persons with a particularly long insurance record). To offset the increased expenditure incurred by the pension insurance system as a result of the prolonged periods of pension receipt, the monthly pension amount is reduced by 0.3 % for each month of early retirement before reaching standard pension age. If a person retires five years earlier, the pension reduction amounts to 18 %. Such reductions are maintained throughout the entire period of pension receipt, i.e. beyond the standard pension age. The pension reductions also affect the amount of survivors' pensions.
A person may claim an old-age pension before reaching the standard retirement age only if the additional earnings limits are not exceeded. However, this limit may be exceeded twice per calendar year, in each case by a maximum amount of twice the additional earnings limit of the previous month. The general additional earnings limit for drawing a full old-age pension early amounts to 450 euros per month. There are personal earnings limits for partial pensions which depend on the amount of the last insured earnings.
On Article 27 (or Article 16 of Convention 128)
A. The provision of paragraph 1 (a) is applied.
B. Pursuant to sections 1 to 6 of SGB VI the group of persons insured in the statutory pension insurance system includes in particular all employees (civil servants, for example, are exempt). Persons with marginal part-time jobs are obliged to have pension insurance coverage unless they have opted for an exemption from compulsory coverage (section 6 (1b) of SGB VI).
Spells of unemployment are defined as compulsory contribution periods pursuant to section 3 no. 3 of SGB VI (if unemployment benefit is paid) or are taken into account as contribution-free credited periods in the pension calculation in accordance with section 58 (1), no. 3, of SGB VI. Periods of receipt of unemployment benefit II can be taken into account as unvalued credited periods pursuant to section 58 (1), no. 6, of SGB VI.
C. (Art. 76 Title I)
|
1. Number of protected employees (in 1000s) |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
a) Pension insurance system |
32,661 |
33,563 |
34,342 |
34,746 |
35,246 |
35,704 |
|
b) Special scheme for civil servants |
2,175 |
2,113 |
2,059 |
2,034 |
2,015 |
2,000 |
|
c) Total |
34,836 |
35,676 |
36,400 |
36,780 |
37,260 |
37,704 |
|
2. Total number of employees (in 1000s) |
36,496 |
36,971 |
37,447 |
37,810 |
38,243 |
38,664 |
|
3. Number of protected employees as percentage of total number of employees |
95.5 |
96.5 |
97.2 |
97.3 |
97.4 |
97.5 |
Explanatory comments:
Information on the pension insurance system is based on the number of employees with compulsory social insurance coverage, supplemented by employees having marginal part-time jobs. The data include the defined total number of employees, i.e. seamen, unemployed persons and compulsorily insured craftsmen have not been considered.
A. The following four factors are relevant to the pension calculation:
- earnings points
- the personal age factor relevant to the respective earnings points (the product of “earnings points multiplied by age factor” are the personal earnings points)
- the pension type factor (e.g for old-age pensions it is 1.0 in the general pension insurance system, and 1.3333 in the miners' pension insurance system)
- the current pension value (29.21 euros for the old Länder, and 27.05 euros for the new Länder since 1 July 2015).
The pension formula can be shown as follows: Personal earnings points x pension type factor x current pension value = gross monthly pension.
The earnings points are the ratio between the individual's earnings in a year of coverage and the average earnings of all insured persons in the same calendar year. With an average earner, this value is one earnings point per year. The age factor is determined by the date on which an old-age pension starts. Where an insured person makes use of the possibility of drawing an early old-age pension, the resulting prolonged period of pension receipt is offset by the age factor, which is one for a pension not claimed earlier, being reduced by 0.003 points for each month of retirement before the standard pension age. This leads to an 0.3% reduction of the old-age pension for each month of retirement before the prescribed pension age. The pension type factor which varies depending on the individual types of pensions takes account of the intended protection purpose of the pension type in relation to the old-age pension. The current pension value is the monthly Euro-equivalent of one earnings point at the time of the calculation of the old-age pension.
Apart from the contribution periods, certain non-contributory periods are also taken into account in the calculation of a pension: Periods in which insured persons were prevented from paying compulsory contributions, such as periods of military service (substitute periods) and periods for which it was no longer possible to pay any contributions because of early invalidity/death (added periods) are taken into consideration and serve to increase the pension. Further non-contributory periods are the credited periods. These periods distinguish between credited periods that are valued (e.g. attendance at a technical college, maternity protection), which serve to increase the pension, and credited periods that are not valued (e.g. unemployment, incapacity for work), which do not directly serve to increase the pension.
In the old Länder (West) the current pension value is
1 July 2011 27.47 euros
1 July 2012 28.07 euros
1 July 2013 28.14 euros
1 July 2014 28.61 euros
1 July 2015 29.21 euros
In the new Länder (East) the current pension value is
1 July 2011 24.37 euros
1 July 2012 24.92 euros
1 July 2013 25.74 euros
1 July 2014 26.39 euros
1 July 2015 27.05 euros
In the old Länder (West), the contribution assessment ceiling is
|
General pension insurance system |
Miners' pension insurance system |
|
|
for calendar year 2011 |
66,000 euros |
81,000 euros |
|
for calendar year 2012 |
67,200 euros |
82,800 euros |
|
for calendar year 2013 |
69,600 euros |
85,200 euros |
|
for calendar year 2014 |
71,400 euros |
87,600 euros |
|
for calendar year 2015 |
72,600 euros |
89,400 euros |
|
for calendar year 2016 |
74,400 euros |
91,800 euros |
In the new Länder (East) the contribution assessment ceiling is
|
General pension insurance system |
Miners' pension insurance system |
|
|
for calendar year 2011 |
57,600 euros |
70,800 euros |
|
for calendar year 2012 |
57,600 euros |
70,800 euros |
|
for calendar year 2013 |
58,800 euros |
72,600 euros |
|
for calendar year 2014 |
60,000 euros |
73,800 euros |
|
for calendar year 2015 |
62,400 euros |
76,200 euros |
B. Pursuant to Article 65 (6) (c), the minimum standards shall be calculated for a worker whose earnings are equal to 125% of the average earnings. Using the average earnings of all insured persons as a basis, as shown in Annexes 1 and 10 to SGB VI, earnings are as follows (in euros and per year):
|
old Länder |
new Länder |
|
|
Earnings in 2015 according to Annex 1 of SGB VI Conversion value in 2015 according to Annex 10 of SGB VI 125% of aver. earnings |
34,999 43,749 |
1.1717 37,338 |
After deduction of taxes, social insurance contributions and private old-age provision costs, the net income for this worker (depending on the number of children) is given in the table below:
|
Married, no children |
Married, with two children |
|||
|
old Länder |
new Länder |
old Länder |
new Länder |
|
|
gross wages + child benefit gross income - social security contributions - taxes net income |
43,749 0 43,749 8,958 4,818 29,973 |
37,338 0 37,338 7,645 3,229 26,464 |
43,749 4,512 48,261 8,848 4,313 35,100 |
37,338 4,512 41,850 7,552 2,844
31,454 |
Pursuant to the provisions (Part XI, Protocol) of the European Social Code or the table relating to Part V of C 128, the following minimum standards have to be complied with:
|
Contingency |
Regulated in Part … of the European Code of Social Security |
Beneficiary |
Prescribed replacement rate as % of net income |
|
Old age Invalidity Death of breadwinner |
V IX X |
Married man, pensionable age Married man, 2 children Widow with 2 children |
45 50 45 |
C. In accordance with Article 29 (1) (a), the benefit specified in Article 28 is to be determined for a skilled worker (125 % of average earnings) with 30 years of employment who starts to draw a pension when reaching the statutory retirement age. Since in the German law on pensions, periods such as unemployment, child-raising or training also exert an influence on the amount of the pension, in addition to the 30 years’ gainful employment, twelve months of Federal Voluntary Service, three years’ training time and two years’ technical college time are included in the pension calculation in order to achieve a more realistic biography.
In the light of the demographic trends, measures to restrain pension increases were adopted with the pension reforms of 2001 (Retirement Assets Act/Retirement Assets (Extension) Act) and 2004 (Pension Insurance Sustainability Act) in order to secure the long-term financial viability of the pension insurance system. These measures went hand in hand with enhanced state support to strengthen the second and third pillars of old-age provision. Thus the decline in the replacement ratio associated with the moderation of pension adjustments is to be compensated by supplementary old-age provision.
This systematic correlation explains why the calculations are based on the assumption that, under the requirements of Articles 27 D, 55 D and 61 D in conjunction with Article 6, the maximum amounts qualifying for state subsidies are paid into a Riester pension plan during the employee's entire work history.
The number of occupational pension entitlements of active employees (second pillar) has risen from 14.6 million to 20.1 million since 2001. The number of Riester pension contracts that were introduced in 2001 has meanwhile risen to 16.5 million. More than 70 % of all employees aged 25 to 65 and subject to compulsory social insurance have made publicly subsidized additional provision for old age. In both systems the fund management is subject to state supervision which is carried out by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht).
For simplification purposes a private retirement savings plan[1] is taken into account in the following calculations to represent the supplementary pension systems described above.
As the following table shows, the ratio of the net old-age pension to the net earnings of a worker with 125% of average income, assuming an insurance record of 30 years, is 67.0 % in western Germany and 68.2 % in eastern Germany, and thus higher than the required standard of 45%. In the statutory pension insurance as well as in private or occupational pension schemes the levels of pension rights and the replacement rates are gender-neutral.
|
Old-age pension |
|||
|
old Länder |
new Länder |
||
|
1 2 3 4=2*3 5 6 7=4-5+6 8 9=7/8 |
Years of employment Total earnings points (EP) Current pension value (€/EP/month) Gross pension (€ per year) Social security contributions Private retirement provision Net old-age income Net income from work Ratio |
30 40.49 29.21 14,193 1,497 6,500 19,195 28,663 67.0 |
30 40.49 27.05 13,144 1,387 5,547 17,304 25,356 68.2 |
The convergence of pension levels between the old and the new Länder will come with the alignment of wages in the two parts of the country. When this will be achieved depends on the future economic development in the two parts of the country.
On pension adjustments:
As wage-related benefits pensions are, as a rule, adjusted in line with the last wage and salary developments (wage factor). For this purpose a new current pension value is to be determined annually on the basis of the data of gross wages and salaries per employee as shown in the national accounts. To reflect the actual revenue development of the statutory pension insurance, the wage developments identified for the purpose of determining the pension adjustment rates include not only the wage trends as shown in the national accounts statistics but also the development of the actually earned income liable to contributions.
To make sure that the costs of demographic change are equally shared between the generations and that the statutory pension insurance complies with financial sustainability principles, pension adjustments take account of two other important factors apart from the development of wages and salaries. Firstly, changes in the expenses of employees for the statutory pension insurance and supplementary old-age provision are taken into account in the pension adjustment process (factor of old-age provision expenses). Secondly, the so-called sustainability factor ensures that the development of the correlation between those who draw pensions and those liable to pay contributions is reflected in the adjustment of pensions. All three factors are summarized in the pension adjustment formula.
The relevant wage development for the pension adjustment of 1 July 2015 was 2.08 % in the old Länder and 2.50 % in the new Länder. The factor of old-age provision expenses was 1.0 in 2015 which means that it did not impact on pension adjustments while the sustainability factor that continues to be taken into account in the pension adjustment formula led to an additional 0.01 % increase in the pension value. As a result, the pension value rose by 2.10 % to 29.21 euros in the old Länder and by 2.50 % to 27.05 euros in the new Länder.
The respective pension adjustments (in per cent) in the period under review amounted to:
Adjustment rate of current pension value in per cent
compared to previous year
____________________________________________________________________________
Date old Länder new Länder
of pension adjustment
____________________________________________________________________________
1 July 2011 0.99 0.99
1 July 2012 2.18 2.26
1 July 2013 0.25 3.29
1 July 2014 1.67 2.53
1 July 2015 2.10 2.50
In the period from 2011 to 2015, the figures reflecting developments in the cost of living in Germany on the one hand and developments of wages and pensions on the other changed as follows on annual average:
|
Changes per year in per cent |
Ø 2011 - 2015 |
|
Consumer prices |
1.35 |
|
Wages |
2.66 |
|
Pension value as of 1 July (old Länder) |
1.44 |
The development indicated in the table shows that between 2011 and 2015 the average pension development lagged behind the annual average development of wages but was higher than that of prices. This was the consequence of the reform efforts in the last years aimed at structuring the statutory pension insurance system in a way that reflects intergenerational equity and financial sustainability and ensuring at the same time that pensioners also benefit from the economic development.
On Article 29 (or Article 18 of Convention 128)
The qualifying period is
- for the standard old-age pension: five years,
- for the old-age pension for persons with a long insurance record: 35 years,
- for the old-age pension for persons with severe disabilities: 35 years,
- for the old-age pension for persons with a particularly long insurance record: 45 years,
- for the old-age pension on account of unemployment or following part-time work for older employees: 15 years,
- for the old-age pension for women: 15 years,
- for the old-age pension for miners with many years of work underground: 25 years.
On Article 30 (or Article 19 of Convention 128)
Old-age pensions are granted for life, i.e. until the beneficiary dies.
On Part VI
Employment Injury Benefit
On Article 31
No major changes occurred in the period under review.
On Article 7 of Convention 121 (Commuting accidents)
Work accidents also include accidents that occur on the way to and from the place of the insured gainful activity. Detours which the insured person makes, because his/her child is in the custody of/minded by a third person because of his/her or his spouse’s gainful activity, or detours made because the insured person participates in car-pooling with other persons on his/her way to and from work do not exclude the person from insurance coverage.
On Article 8 of Convention 121
With effect from 1 January 2015, the list of diseases to be recognised as occupational diseases pursuant to German legislation, was extended by four diseases through the 3rd Ordinance amending the Ordinance on Occupational Diseases.
On Article 32 (or Article 6 of Convention 121)
A minimum degree of incapacity for work is not required regarding the benefits specified in subparagraphs (a) and (b) - and is in particular not required regarding benefits specified in Article 34 either (sections 27-34 SGB VII). Only the cash benefits specified in Article 36 require a reduction in earning capacity of at least 20 per cent, in exceptional cases even a lower level of reduction in earning capacity may suffice (section 56 SGB VII).
On Article 33 (or Article 4 of Convention 121)
A. The categories of persons insured in the statutory occupational accident insurance cover in particular all employees including apprentices/trainees (sections 2-6, SGB VII). Civil servants are covered by a special system.
In the period under review the categories of persons to be covered have been extended, e.g. participants in the International Youth Voluntary Service are covered by the accident insurance since 3 May 2011. Since 1 August 2012 the accident insurance will compensate living organ donors who incur health damages in connection with their donation.
A declaration pursuant to Article 3 was not made.
B. (Art. 76 Title I)
|
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|||||||
|
1. |
Number of protected employees (in 1000s) |
|||||||||||
|
a) |
General system |
34,321 |
34,858 |
35 388 |
35,776 |
36,228 |
36,664 |
|||||
|
|
b) |
Special system for civil servants |
2,175 |
2,113 |
2,059 |
2,034 |
2,015 |
2,000 |
||||
|
c) |
Total |
36,496 |
36,971 |
37,447 |
37,810 |
38,243 |
38,664 |
|||||
|
2. Total number of protected employees (in 1000s) |
36,496 |
36,971 |
37,447 |
37,810 |
38,243 |
38,664 |
||||||
|
3. Number of protected employees |
||||||||||||
|
as a share of the total number |
||||||||||||
|
of employees in per cent |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
||||||
Explanatory comments:
The total number of civil servants and employees has been calculated on the basis of the national accounts (VGR). Statistical figures on seafarers and unemployed persons are not included in these accounts.
On Article 34 (or Article 10 of Convention 121)
After an accident at work has occurred or an occupational disease has been diagnosed, the accident insurance fund provides benefits in kind; apart from the change in the level of the benefit payable by the nursing care insurance (see subparagraph c), no major amendments have been introduced in the period under review.
a, b) Outpatient medical and dental care by general practitioners, medical specialists and hospital doctors as well as inpatient hospital treatment (sections 27, 28, 33 of SGB VII).
c) Nursing care can be provided by paying a nursing allowance or upon special request by supplying the necessary nursing staff for home nursing or by providing for the livelihood and nursing care in a suitable institution in the form of institutional care (section 44 of SGB VII).
Nursing allowance levels
|
Date of adjustment |
West |
East |
|
1 July 2011 |
310 - 1,240 |
272 - 1,086 |
|
1 July 2012 |
317 - 1,267 |
278 - 1,111 |
|
1 July 2013 |
318 - 1,270 |
287 - 1,148 |
|
1 July 2014 |
323 - 1,291 |
294 - 1,177 |
|
1 July 2015 |
330 - 1,318 |
301 - 1,206 |
d) As far as necessary, inpatient hospital care or a rehabilitation institution (section 33 of SGB VII, see also above under a)).
e, f) Supply of medicines and bandages, therapies, supply of prostheses, orthopedic and other aids including any necessary adjustments, maintenance and replacement as well as training to learn how to use these aids; physiotherapy, exercise therapy, speech therapy and ergotherapy (sections 27, 29, 30, 31, 32, 34 of SGB VII).
g) Of course, the benefits catalogue also includes emergency treatment for employees who have suffered serious accidents at their place of work and follow-up care for victims with lesser injuries that do not lead to absence from work.
On Article 35 (or Article 26 of Convention 121)
The statutory occupational accident insurance funds continue to cooperate closely with the occupational rehabilitation funds and other public and private bodies - especially the employers - regarding the provision of occupational rehabilitation benefits (sections 26, 35-38 of SGB VIII). During the period of occupational rehabilitation the injured person receives a transitional allowance.
On Article 36 (or Articles 13, 14, 18 and 21 of Convention 121)
In the case of temporary incapacity for work the injured person receives a periodical cash benefit, i.e. an injury benefit. However, if it can be expected that the (total or partial) loss of earning capacity will be of a permanent nature, the injured person receives an injury pension or, following the death of a person with dependant family members, the survivor(s) receive a surviving dependant’s pension.
The injury benefit rate is generally calculated in the same way as the sickness benefit; it shall amount to 80 per cent of the periodical income earned before the insured event but may not exceed the current year’s annual income from work (section 47 of SGB VII).
The injury pension amounts to two-thirds of the annual income from work in the case of a total loss of earning capacity. If the capacity for work is not totally lost, but only reduced due to the consequences of the insured event, the amount of the payable pension shall correspond to the degree of reduced earnings capacity (partial pension) (section 56, paragraph 3 of SGB VII): The annual earnings correspond to the sum total of income from work and other income before taxes and social security contributions in the 12 full calendar months before the insured event. The annual earnings are only taken into account up to the double amount of the reference amount relevant at the time when the insured event occurred (section 85, paragraph 2, SGB VII). For the year 2015 this maximum amount was 68,040 euros in the old Länder (West) and 57,960 euros in the new Länder (East). The statutes of the accident insurance fund may determine a higher ceiling.
If the insured person dies as a consequence of the accident at work or of the occupational disease, the spouse and the children of the insured person are entitled to a survivor’s pension. The widow’s or widower’s pension amounts to 30 per cent of the annual earnings of a deceased person (so-called “small widow’s/widower’s pension”). It amounts to 40 per cent of the annual earnings (so-called “big widow’s/widower’s pension”) if the eligible person
- has completed age 47, or
- has a reduced earning capacity within the meaning of the pension insurance, or
- raises a child entitled to an orphan’s pension, or
- raises a child that is entitled to an orphan’s pension on account of his/her physical, mental or psychological disability.
The small widow’s/widower’s pension is paid for a maximum period of 24 calendar months following the month in which the spouse deceased or until the month in which he/she remarries prior to the end of the 24 calendar months. The big widow’s/widower’s pension is paid without time limit as long as the special eligibility criteria are fulfilled (section 65 of SGB VII).
Children of deceased persons can apply for an orphan’s pension in their own right. Orphan’s pensions are generally paid until age 18 and may be paid until age 27 e.g. if the orphan is enrolled in a (higher) education or vocational education institution. An orphan’s pension amounts to 20 per cent of the annual earnings of the deceased person for half orphans and to 30 per cent for full orphans.
A certain amount of the own income from work or wage replacement benefits of the widow/widower is deducted from the survivor’s pension. Income exceeding the current pension value by a factor of 26.4 per month (section 65, paragraph 3 of SGB VII) shall be taken into account for this purpose. As of 1 July 2015, the free amount is 771.14 euros (West) and 714.12 euros (East), it is increased by 163.58 euros (West) and 151.48 euros (East) for every child of the deceased person eligible for an orphan’s pension. As of 1 July 2015, the orphan's own income is no longer taken into account for the purpose of calculating the orphan's pension.
Article 36 paragraph 3 (or Article 15 of Convention 121) has been availed. During the period under review the legal prerequisites providing for a lump sum payment of an injury pension have not been amended essentially.
Calculation of the injury pension:
B. B. The basis for the calculation is the wage of a skilled male worker pursuant to Article 65 paragraph 6 subparagraph c). In 2015 this basic value was 125 per cent of the average gross wages, i.e. (34,999 x 125 per cent =) 43,749 euros/year: 12 = 3,645.75 euros/month (West) and (29,870 x 125% =) 37,338 euros/year: 12 = 3,111.50 euros/month (East).
C. The monthly net wage of such a standard beneficiary (man with spouse and two children) amounts to 2,924.98 euros (West) and 2,621.20 euros (East) after deduction of social security contributions and income tax (plus church tax, tax bracket III).
D. Amount of the injury pension (in the event of a total loss of earning capacity):
⅔ of 3,645.75 euros/month = 2,430.50 euros/month West
⅔ of 3,111.50 euros/month = 2,074.33 euros/month East
E. Family allowances for employees:
188 euros x 2 = 376 euros (child benefit for 2 children)
F. Family allowances for recipients of an injury pension:
188 euros x 2 = 376 euros (child benefit for 2 children)
G. Wage replacement rate:
(D+F) : (C+E) = (2,430.50 + 376) : (2,924.98 + 376) =2,806.50: 3,300.98 = 85.0% (West)
(D+F) : (C+E) = (2,074.33 + 376) : (2,621.20 + 376) = 2,450.33: 2,997.20 = 80.7 % (East)
Calculation of a survivor’s pension
D. Amount of widow’s pension:
⅔ of 3,645.75 euros/month = 1,458.30 euros/month West
40 % of 3,111.50 euros/month = 1,244.60 euros/month East
Amount of an orphan’s pension:
20 % of 3,645.75 euros/month = 1,458.30 euros/month West
2 children x 20 % of 3,111.50 euros/month = 1,244.60 euros/month East
E. Family allowances for employees:
188 euros x 2 = 376 euros (child benefit for 2 children)
F. Family allowances for recipients of an injury pension:
188 euros x 2 = 376 euros (child benefit for 2 children)
G. Wage replacement rate:
(D+F) : (C+E) = (1,458.30 + 1,458.30+376) : (2,924.98 + 376) = 3,292.60 : 3,300.98 = 99.7 % (West)
(D+F) : (C+E) = (1,244.60 + 1,244.60+376) : (2,489.20 + 376) = 2,865.20 : 2,997.20 = 95.6% (East)
Pension adjustment
In the period under review injury and survivors’ pensions have been adjusted - in accordance with the adjustment of old-age pensions - as follows:
|
Adjustment date |
Adjustment factor West |
Adjustment factor East |
|
1 July 2011 |
1.0009 |
1.0009 |
|
1 July 2012 |
1.0218 |
1.0226 |
|
1 July 2013 |
1.0025 |
1.0329 |
|
1 July 2014 |
1.0167 |
1.0253 |
|
1 July 2015 |
1.0210 |
1.0250 |
On Article 37
Employees who have had an accident at work or suffer from an occupational disease as a consequence of being employed in the territory of the Federal Republic of Germany, are entitled to the benefits set forth in Articles 34 and 36. Moreover, accidents at work and occupational diseases which occurred outside the above areas, are also compensated if the eligibility criteria of Article 5 of the Act on Foreign Pensions are complied with. Survivors’ rights are comprehensively listed in Article 36.
On Article 38:
Medical benefits and injury pensions are granted throughout the duration of the insured event. In the event of incapacity for work resulting from an accident at work or from an occupational disease an injury benefit is granted without any qualifying period.
On Part VII
Family Benefits
As from 1 January 2015, child benefit amounts to 188 euros (as of 1 January 2016: 190 euros) per month for the first and for the second child, 194 euros (196 euros) per month for the third child and 219 euros (221 euros) per month for the fourth and each further child.
On Article 40
According to section 1 of the Parental Allowance and Parental Leave Act (BEEG) the following prerequisites have to be complied with to be entitled to parental allowance:
On Article 41
Parental allowance is a benefit to support parents who want to look after their child themselves for a certain time after his/her birth and can thus not engage in gainful activities or can only work part-time. To this end parental allowance compensates for the missing earned income of the parent looking after the child by a replacement benefit.
Parents who were not gainfully employed before the birth of their child may also draw parental allowance.
All parents living in Germany are entitled to parental allowance if they fulfil the prerequisites under section 1 of the Federal Allowance and Parental Leave Act. Not only Germans, but also nationals of EU Member States, and of Iceland, Liechtenstein, Norway and Switzerland are entitled to parental allowance if they are gainfully active in Germany or live in Germany.
A foreign national who is not entitled to free movement is entitled to parental allowance if he/she has a settlement or residence permit allowing him/her to engage in gainful activity. After a stay in Germany of three years a parent may obtain parental allowance if he/she has a residence permit for reasons of hardship, temporary protection, suspension of deportation or because of the existence of obstacles to departure.
Also parents who are only temporarily employed abroad are entitled to parental allowance if they fulfil the prerequisites in section 1, paragraph 2 of the BEEG.
Apart from the biological parents and the adoptive parents, up to third degree relatives may also obtain parental allowance, as e.g. grandparents or siblings.
Parents with a combined income of more than 500,000 euros per year before taxes (single parents of more than 250,000 euros) in the year before their child is born, are not entitled to parental allowance.
In the fourth quarter of 2015 a total of 829,613 persons obtained parental allowance.
On Article 42
The amount of parental allowance is determined on the basis of the net income of the caring parent before the birth of the child. The parental allowance replaces pre-birth income at the following rates: for incomes between 1,000 and 1,200 euros per month the replacement rate is 67 per cent, for a pre-birth income of 1,220 euros the rate is 66 per cent and with a pre-birth income of 1,240 euros and more the replacement rate is 65 per cent. The maximum payable amount is 1,800 euros. If the parent’s pre-birth income was lower than 1,000 euros, the replacement rate gradually increases to up to 100 per cent. The parental allowance ranges from 300 euros to 1,800 euros.
Even without prior gainful employment parents may obtain the minimum amount of 300 euros.
Families with several young children obtain a sibling bonus or a multiple birth supplement.
On Article 43
The entitlement to parental allowance does not require the completion of a qualifying period.
On Article 44
In 2015, parental allowance expenditure amounted to some 5.8 billion euros.
On Article 45
Parents can obtain basic parental allowance from the birth of their child until the child is 14 months old, or they may obtain Parental Allowance Plus (ElterngeldPlus) beyond this date. Parental allowance is paid on the basis of live months of the child (not calendar months). The parents can decide themselves who would like to stay at home and for how long.
The basic parental allowance can be drawn for a period of up to 14 months. Every parent can draw the benefit for at least two and no more than twelve months. Basic parental allowance is paid for another two months if both parents decide to continue to stay at home and draw parental allowance (partner months) or, in case the parent is a lone parent and the family would not have a(n) full) income from work for at least two months.
Parents whose child was born on or after 1 July 2015, can apply for Parental Allowance Plus in addition to basic parental allowance. Parental Allowance Plus is intended in particular for parents who want to work part-time while drawing parental allowance. Parental Allowance Plus is calculated in the same way as basic parental allowance, but amounts to a maximum of half the amount of parental allowance for which parents without part-time income would be eligible. But on the other hand it will be paid for twice the period of time: one parental allowance month = two Parental Allowance Plus months. Basic parental allowance and Parental Allowance Plus can be freely combined.
If both parents work between 25 and 30 hours a week in four subsequent months, each of them will receive additional monthly rates of Parental Allowance Plus (partnership bonus) during these four months.
Single parents can also apply for these partnership bonus months and may also use the partner months, provided they fulfil the necessary eligibility criteria.
On Part VIII
Maternity Benefit
On Article 48
Reference is made to the information concerning Article 9. According to sections 24c to 24i of SGB V, all women insured in the statutory health insurance are entitled to pregnancy and maternity benefits as set forth in Articles 49 and 50.
On Article 49
Pregnancy and maternity benefits provided for under sections 24d to 24h of SGB V comprise
- medical care and midwife assistance,
- supply of medicines, bandages, therapeutic remedies and aids; assistance in connection with pregnancy-related problems and in connection with the delivery of the baby (no co-payment required)
- outpatient or inpatient delivery
- provision of care at home if a person living in the same household cannot provide this care to the extent necessary,
- home help if the insured woman is not able to perform domestic tasks during pregnancy or after delivery, and another person living in the same household cannot run the household.
The health insurance funds can offer their insurees additional benefits and services provided by midwives during pregnancy and maternity (section 24d of SGB V) according to their statutes (section 11, paragraph 6 of SGB V).
On Article 50
According to section 24i of SGB V, insured persons, who are entitled to sickness benefit in the case of incapacity for work, or who, because of the maternity protection periods set forth in section 3, paragraph 2 and section 6 paragraph 1 of the Maternity Protection Act, are not paid any remuneration, receive maternity benefit amounting to the average income from work per calendar day over the previous 3 calendar months less the statutory deductions, but not exceeding a maximum of 13 euros per calendar day.
If the income from work exceeds a maximum of 13 euros per calendar day, the excess amount (maternity benefit supplement) will either be paid by the employer or by the federal government according to the provisions of the Maternity Protection Act. The resulting financial burdens are refunded to them by the competent health insurance fund. Under the Act to Compensate Employers for the Costs of Continued Payment of Wages (Gesetz zum Ausgleich der Arbeitgeberaufwendungen für Entgeltfortzahlung - AAG), all employers (as of 1 January 2006) are on the other hand obliged to pay a levy towards these costs.
Female employees who are covered by a private health insurance or who are covered by the statutory health insurance as family members receive a lump-sum maternity benefit of 210 euros. Insofar as the average net income from work exceeds 13 euros per calendar day they shall also obtain the difference as a supplement to the maternity benefit from their employer.
On Article 51
There are no qualifying periods for medical benefits in kind and for maternity benefit.
On Article 52
Maternity benefit and the maternity benefit supplement are paid during the last 6 weeks before the expected day of delivery, for the day of delivery and for the first 8 weeks after delivery (12 weeks in the event of multiple births and preterm births).
On Part IX
Invalidity Benefit
On Article 54 (or Article 8 of Convention 128)
In case of loss of earning capacity, the statutory pension insurance provides a two-tier pension on account of reduced earning capacity:
- a full-rate reduced earning capacity pension for persons with a residual working capacity of less than three hours a day on the general labour market,
- a partial reduced earning capacity pension for persons with a residual working capacity of three to under six hours a day on the general labour market.
Insured persons who are capable of working at least three but not more than six hours a day receive the reduced earning capacity pension at the full rate if they are unable to use their capacity for gainful employment because no job is available.
A partial reduced earning capacity and occupational disability pension (Rente wegen teilweiser Erwerbsminderung bei Berufsunfähigkeit) can be claimed by insured persons born before 2 January 1961 who are occupationally disabled. An insured person is considered to be occupationally disabled if an illness or a disability has reduced his or her earning capacity to such an extent that he or she is capable of working not more than six hours a day as compared to physically, mentally and psychologically non-disabled persons with similar qualifications and equal knowledge and skills.
For persons in receipt of a pension on account of a fully reduced earning capacity the general limit for additional earnings is 450 Euros per month. In addition, there are personal additional earnings limits for recipients of partial pensions which depend on the amount of the last insured earnings. There is no general additional earnings limit for pensions on account of a partially reduced earning capacity; the limits for additional earnings are always determined on a case by case basis.
On Article 55 (or Article 9 of Convention 128)
|
1. Number of protected employees (in 1000s) |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
a) Pension insurance |
29,732 |
30,594 |
31,353 |
31,735 |
32,229 |
32,796 |
|
b) Special scheme for civil servants |
2,175 |
2,113 |
2,059 |
2,034 |
2,015 |
2,000 |
|
c) Total |
31,907 |
32,707 |
33,412 |
33,769 |
34,244 |
34,796 |
|
2. Total number of employees (in 1000s) |
36,496 |
36,971 |
37,447 |
37,810 |
38,243 |
38,664 |
|
3. Number of protected employees as percentage of total number of employees (%) |
87.4 |
88.5 |
89.2 |
89.3 |
89.5 |
90.0 |
Explanatory comments:
The data on pension insurance is based on the numbers of employees with compulsory social insurance coverage plus people in marginal employment with a right to invalidity benefit. The data comprise the prescribed total number of employees, i.e. seamen, unemployed persons and craftsmen with compulsory insurance coverage are not included.
On Article 56 (or Article 10 of Convention 128) – Minimum standards
A. For the pension on account of a partially reduced earning capacity the pension type factor for the personal earning points is 0.5 whereas it is 1.0 for the pension on account of a fully reduced earning capacity.
The 10.8 % reduction of reduced earning capacity pensions that was introduced by the 1999 Pension Reform Act is maintained. Its effect is mitigated, however, since the period to be added (Zurechnungszeit) is extended up to the age of 60. The added period was extended again by two additional years from age 60 to 62 by the introduction of the Pension Insurance Benefit Improvement Act in 2014. In addition the pension insurance examines whether the last four years before the reduction in earning capacity occurred reduce the person’s pension entitlement. If this is the case these years will not be considered anymore for the calculation of the entitlements (so-called most favoured test). This improvement applies to all insured persons who have started to draw a pension on account of reduced earning capacity since 1 July 2014.
In accordance with Article 57 (1) (a), the benefit specified in Article 56 has to be determined for the employee in question (125 % of average earnings) after 15 years of employment at the onset of invalidity.
Under current German pension law, an added period up to the age of 62 is taken into consideration for the calculation of the pension payable on account of a reduced earning capacity; this period is assessed on the basis of the average pension entitlements earned during the previous working life. Since the 2001 reform, pensions on account of reduced earning capacity are curbed by a maximum of 10.8 % to take account of the early pension receipt. In addition to the 15 years’ gainful employment, 12 months of Federal Voluntary Service, three years’ training and two years at technical college are presumed. When invalidity occurs, the employee can also claim an invalidity pension from a private and government subsidized retirement provision contract.
As shown in the following table, the defined employee, married with two children, would receive a benefit with a net replacement rate of 65.1 % (old Länder) or 67.5 % (new Länder) in the event of a total loss of earning capacity. This means that the benefit maintains the prescribed minimum standard of 50 %.
On Article 57 (or Article 11 of Convention 128)
As a rule, pensions on account of reduced earning capacity are only granted if the insured person has paid 3 years of compulsory contributions from an insured employment or activity within the last five years prior to the onset of the reduction in earning capacity and has completed the general qualifying period of 5 years (section 43, Social Code VI) or is deemed to have completed the said qualifying period (section 53, Social Code VI).
On Article 58 (or Article 12 of Convention 128)
Pensions on account of reduced earning capacity are paid until the beneficiary reaches statutory retirement age. When the beneficiary reaches statutory retirement age, he or she is entitled to the standard old-age pension which has to be automatically awarded in theses cases.
On Article 13 of Convention 128
Under sections 9 et seq. of SGB VI, the pension insurance institutions also provide inpatient or full-day outpatient medical rehabilitation services and benefits to promote participation in working life. The purpose of such benefits and services is to counteract or overcome the effects of an illness or a physical, mental or psychological disability on the insured person's employability, thus preventing an impairment of his or her earning capacity or an early exit from working life or at least to try to re-integrate him or her permanently into working life. Following inpatient or full-day outpatient medical rehabilitation benefits and services, a follow-up treatment may be considered necessary in order to consolidate the rehabilitation success achieved so far. Rehabilitation benefits and services take priority over pension benefits.
During the provision of these benefits and services the insured persons are paid transitional allowances as a supplemental benefit to secure their livelihood and that of their families. Moreover, the pension insurance offers prevention measures for insured persons with a view to maintaining their employability, and therapeutic treatment for children of insured persons to address risks to their health, to improve their condition or restore their health.
On Part X
Survivor’s Benefits
On Article 60 (or Articles 21 and 31 of Convention 128)
A survivor's pension (pension on account of the insured person's death) is paid to the widow, the widower, the surviving partner of a registered same sex partnership, the orphans and, under specific conditions, to the former spouse of the deceased person.
On Article 61 (or Article 21 of Convention 128)
|
1. Number of protected employees (in 1000s) |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
a) Pension insurance |
29,732 |
30,594 |
31,353 |
31,735 |
32,229 |
32,796 |
|
b) Special scheme for civil servants |
2,175 |
2,113 |
2,059 |
2,034 |
2,015 |
2,000 |
|
c) Total |
31,907 |
32,707 |
33,412 |
33,769 |
34,244 |
34,796 |
|
2. Total number of employees (in 1000s) |
36,496 |
36,971 |
37,447 |
37,810 |
38,243 |
38,664 |
|
3. Number of protected employees as percentage of total number of employees (in per cent) |
87.4 |
88.5 |
89.2 |
89.3 |
89.5 |
90.0 |
Explanatory comments:
The data on pension insurance is based on the numbers of employees with compulsory social insurance coverage plus people in marginal employment entitled to a survivor’s benefit. The data comprise the prescribed total number of employees; seamen, unemployed persons and craftsmen with compulsory insurance coverage are not included.
On Article 62 (or Article 23 of Convention 128) – Minimum standards
In accordance with Article 63 (1) (a), the benefit specified in Article 62 is to be determined for the survivors of the defined employee (125 % of average earnings) who has completed 15 years of employment at the time of his death. In line with the calculations in Part V and in Part IX, the calculation of this benefit credits 12 months of Federal Voluntary Service, 3 years of training and 2 years of technical schooling.
Under the new German law, an imputation period up to the age of 62 is taken into consideration for the calculation of the survivor's pension; as in the case of the pension paid due to reduced earning capacity, the imputation period is assessed on the basis of the average pension entitlements earned during the deceased employee's working life. The derived entitlements are reduced by a maximum of 10.8 % to take account of the early receipt of the pension. Thus the widow receives 55 % (pension type factor 0.55) of her husband's (theoretical) pension entitlements. In addition, the widow is credited with a child bonus which, applying the pension type factor, amounts to three earnings points for the two children.
The following table shows that the widow with two children defined here receives a benefit amounting to 54.4 % in the old Länder, or 56.9 % in the new Länder, in relation to the net earnings of her deceased husband. This means that the benefit exceeds the prescribed minimum standard of 45 %. These calculations also include the widow's protection provided under a private and government subsidised retirement provision plan.
Survivor's pensions under the new law
Under the old legislation (pension type factor 0.6, no child bonus), that is still applicable to the large majority of the newly awarded survivor’s pensions, a replacement rate of 53.6 % of the deceased husband's net earnings is reached in the old Länder, and 56.0 % in the new Länder. Unlike the new law, a widow's/widower’s pension reaches a replacement rate of 60% of the pension entitlement of the deceased insured person, a child bonus is not granted. Under the old legislation, too, the prescribed minimum standard of 45 % is maintained.
Survivor's pensions under the old law
On Article 63 (or Article 24 of Convention 128)
No changes in the period under review. Widows', widowers' and orphans' pensions are only granted if the general qualifying period is completed or deemed to be completed. The qualifying period is completed when the deceased employee had completed a period of coverage of five years at the time of his or her death.
On Article 64 (or Article 25 of Convention 128)
There is nothing to add to the previous report.
On Part XII
Common provisions
On Article 70 (2) (or Article 71 (2) of Convention 102)
Total expenditure and contribution revenue from the protected employees (excluding statutory accident insurance) were as follows:
Overall expenditure in million euros
(A)
|
Adopted parts of the Convention |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Parts II, III and VIII (Health insurance and maternity benefit) |
76,416 |
78,841 |
81,668 |
87,489 |
93,049 |
98,278 |
|
Part IV (Unemployment insurance) |
28,385 |
21,908 |
21,159 |
19,052 |
18,546 |
18,157 |
|
Parts V, IX and X (Pension insurance of workers, salaried employees and miners incl. special scheme for civil servants) |
296,379 |
300,944 |
307,004 |
312,049 |
321,980 |
332,246 |
|
Total |
401,180 |
401,694 |
409,831 |
418,589 |
433,576 |
448,680 |
Contribution revenue from employees
in million euros
(B)
|
Adopted parts of the Convention |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Parts II, III and VIII (Health insurance and maternity benefit) |
47,136 |
49,113 |
50,902 |
52,606 |
54,702 |
56,880 |
|
Part IV (Unemployment insurance) |
11,202 |
12,590 |
13,146 |
13,648 |
14,203 |
14,781 |
|
Parts V, IX and X (Pension insurance of workers, salaried employees and miners incl. special scheme for civil servants) |
77,632 |
81,298 |
83,336 |
83,653 |
87,107 |
90,704 |
|
Total |
135,970 |
143,001 |
147,384 |
149,907 |
156,012 |
162,364 |
Explanatory comments:
The figures are based on financial specifications of the insurance funds and the Federal Government's social budget and include also estimates. Expenditure relating to Parts II to IV and to Parts VI and VII does not include the - undisclosed - expenditure of the special scheme for civil servants. The overall expenditure of the health insurance (Parts II, III and VIII) were converted into expenditure per protected employee in the General Scheme. This was not possible for pension insurance expenditure (Parts V, IX and X); here total expenditure figures were used.
The contribution revenue listed here is confined to the contributions paid by the protected employees.
The following shares of the total expenditure (excluding accident insurance) was financed from the contributions paid by the protected employees
|
2010 |
33.9 per cent |
|
2011 |
35.6 per cent |
|
2012 |
36.0 per cent |
|
2013 |
35.8 per cent |
|
2014 |
36.0 per cent |
|
2015 |
36.2 per cent. |
[1] The calculations are based on the following assumptions: Savings rate = 4 % of gross income, interest rate = 4.0 %, administrative costs = 10 % of the paid premiums.