Chapter VII: Survivors Chapter VII: Survivors
Applicable statutory basisSocial Code (Sozialgesetzbuch), Book 6, introduced by the pension reform law (Rentenreformgesetz) of 18 December 1989, amended in the pension reform law 1999 (Rentenreformgesetz 1999) of 16 December 1997.
Basic principlesCompulsory insurance for employees (manual and white-collar workers).
Field of applicationManual and white-collar workers.
Exemptions from compulsory insuranceNo compulsory insurance for employees in insignificant employment (up to DEM 630 (EUR 322) per month in the old Länder and DEM 530 (EUR 271) in the new Länder, and a weekly work schedule of less than 15 hours) or a short-term employment (up to 2 months or 50 working days per year).
Entitled personsSurviving spouse,
Divorced spouse (divorced before 1 July 1977) financially dependant upon the deceased,
Children.
Conditions60 months of insurance.
Married to the deceased at the time of his/her death, or divorced before 1 July 1977 and financially dependant upon the deceased. The surviving partner must not have married again.
If divorce occurred after 30 June 1977 acquired rights are divided up between spouses for old-age and invalidity insurance.
Age limit: 18 years (under certain conditions 27).
None.
BenefitsThe "major" widow's or widower's pension amounts to 60% of the pension for which the deceased spouse would have been eligible. The "major" pension is payable from the age of 45 onwards, if the widow or widower is unfit to work or bringing up a child under the age of 18 or has no age-related restrictions if bringing up a child which cannot look after itself on account of a mental or physical handicap.
In other cases, the "minor" widow's or widower's pension is payable, 25% of the pension for which the deceased spouse would have been eligible.
If insured person dies before the age of 60, period between date of death and 55th anniversary is counted full toward the contribution period and two thirds of the period between 55 and 60 years and increases the pension.
Where replacement earnings of widow/ widower exceed the monthly amount of DEM 1,258 (EUR 643) in the old Länder or DEM 1,079 (EUR 552) in the new Länder plus amounts for children, survivor's pension is reduced by a rate of 40% of the excess amount.
Pension ceases; grant of 2 year's pension.
having lost both parents
Orphan children having lost both parents: 1/5th of the contributory pension of both parents (orphan children having lost one parent: 1/10th of insured person's pension) plus children's supplement. No restriction on combination with family allowances. Age limit: 18 years (27 for study or occupational training).
Sliding scale according to income, for orphan's pensions as of age 18, based on same principles as widow's or widower's pension. 40% of income exceeding a monthly ceiling of DEM 839 (EUR 429) (old Länder) or DEM 719 (EUR 368) (new Länder) is taken into account.
None.
None.
The insured person's full pension is paid to the widow (or widower) for the 3 months following the insured person's death. See also allowances for funeral expenses under Table III.
The divorced spouse (divorce after 30 June 1977) who has not remarried has a right, on the death of the ex-spouse and during the upbringing of their children, to a pension based on his and her own insurance (child-raising pension). Conditions: 60 months of insurance before the death. Sliding scale according to income, same as widow's or widower's pension.
No minimum pension.
No maximum pension.
Taxation and social contributionsIn general, pensions are liable to taxation.
The taxation is partial: only the returns on the pension are liable to taxation. The returns are comparable to an interest amount that is credited to the capital collected through the payment of contributions. The amount of the returns depends on the age of the beneficiary at the commencement of pension payments.
Despite the partial taxation, often income tax is not due because the income from the returns on the pension do not exceed the tax-free minimum income level and the other tax exemptions - as long as no further income exists.
The minimum income levels (Existenzminimum) are not subject to taxation under any circumstances. The tax-free minimum income levels for 1999 are DEM 13,067 (EUR 6,681) for single adults and DEM 26,135 (EUR 13,363) for married couples.
The portion contributed for sickness insurance by the pensioner is determined according to the respective contribution rate of the sickness fund.
The portion contributed by the pensioner for long-term care insurance is 0.85%.