Anyone who cares for relatives can also benefit from this in their own retirement planning. Under certain conditions, the nursing care fund pays pension contributions – and your own pension increases.
Who benefits? Requirements & definitions
Many people regularly look after their parents, partners or other relatives – often with great commitment and little time for themselves. To ensure that this commitment does not come at the expense of retirement provision, care periods are taken into account in the pension under certain conditions. According to the Federal Ministry of Health, a carer is anyone who cares for a person in need of care with at least care level 2 for at least ten hours a week on two days in the home environment, not for profit, working a maximum of 30 hours and residing in Germany, the EEA or Switzerland. The medical service determines in the nursing report whether these requirements are met.
These care periods then count as contribution periods in the statutory pension insurance and thus increase your own pension entitlement. According to the German Pension Insurance Association, around 1.1 million carers are currently compulsorily insured in this way – and without paying their own contributions.
Proceed according to pension status: no pension, early pension, standard retirement age
Depending on your pension status, different rules apply if care periods are to be counted towards your pension. Anyone who does not yet receive a pension is automatically compulsorily insured as a carer under the conditions mentioned, and the care fund pays the pension contributions.
Even those who receive an early retirement pension will continue to be compulsorily insured, provided that the nursing care fund has registered the person as a caregiver. According to the consumer advice center, the payment of contributions is usually automatic, but should be checked using the nursing care fund’s questionnaire.
Anyone who has already reached the standard retirement age and receives a full pension can continue to receive contributions and thus increase their pension by switching to a partial pension. A waiver of a minimal part of the pension is sufficient to be eligible again.
What does it do financially? Contributions & pension growth
The nursing care fund pays monthly pension insurance contributions for caring relatives, the amount of which depends on the level of care and the type of care service – i.e. depending on whether care allowance, combination benefits or benefits in kind are received. According to the Federal Ministry of Health, this can result in pension contributions worth a fictitious monthly income that corresponds to employment subject to insurance.
Depending on the amount of care required, this results in a noticeable increase in pension, which increases with each year of care work. The German pension insurance emphasizes that this additional pension entitlement remains for life. Since the most recent reform, the amounts have been calculated uniformly across the country – the previous distinction between East and West no longer applies.
Approach to increasing pensions through care periods
In order for care periods to be taken into account in your pension, you must first submit an application for care benefits to the care fund. The “Questionnaire for paying contributions for non-employed carers” must be filled out completely and registration as a carer must be confirmed. The German Pension Insurance points this out in its brochure “Pension for Caregivers”.
Anyone who has reached the standard retirement age can reactivate contribution payments by switching to a partial pension. According to the consumer advice center, it is enough to send the partial pension notice to the nursing care fund – the contributions will then continue and the pension will increase from the following July.
According to the Federal Ministry of Health, the pension entitlement remains even during a vacation of up to six weeks, as the nursing care fund continues to pay contributions during this time.
Change back and typical stumbling blocks
After the end of a care activity – for example by moving home or death of the person being cared for – a return to full pension is possible at any time. The consumer advice center emphasizes that the previously acquired higher pension entitlements will be retained permanently. The nursing care fund and pension insurance company should be informed of the change so that the change takes place in the following month.
Anyone who shares care with others must note that the pension contribution is divided proportionally between the carers. However, the prerequisite remains that each carer meets the minimum care requirements. The German Pension Insurance points this out in its brochure.
The consumer advice center also recommends checking the possible effects on an existing company pension when drawing a partial pension and regularly coordinating the payment of contributions with the nursing care fund, even if this is usually done automatically.
Editorial team finanzen.net