The mother’s pension is subject to a higher pension


Maternity leave relief
The mother’s pension is subject to a higher pension

Taxable retirees who receive a maternity pension have recently benefited from higher benefits. This was made possible by a ruling of the Federal Financial Court.

Your child was born before 1992? Retirees to whom this applies take into account at least part of the period of upbringing of their children in the statutory pension. Specifically, it is up to 2.5 years that mothers and fathers are granted corresponding pensions.

But until recently, the problem of pensioners was that when pension points were credited, the pension automatically increased, but the pension allowance did not grow with it. As a result, those affected paid a lot of taxes on their pensions. The Federal Finance Court (Az.: XR 24/20) has decided this and has therefore improved it accordingly.

Now the following applies: Whoever receives a higher pension through a so-called mother’s pension with an already existing statutory old-age pension, pension benefits must also be increased accordingly. Specifically, the same portion of the increase amount must remain tax-free as from the original pension at the beginning of the pension.

Background: The tax-exempt portion of the pension decreases from year to year. If the amount of the increase is provided with the pension allowance applied at the beginning of the payment, it remains less than it. Therefore, the Taxpayers’ Association advises everyone who receives a maternity pension to check the tax-exempt account in the open assessments. This is the only way to ensure that every mother and father gets what he or she is entitled to.

37.60 euros per pension point

In principle, periods of raising children have a positive effect on future pensions. For this purpose, parents are paid up to three years of subscription periods (for children born after 1992) in the amount of one statutory pension insurance retirement point for each child. The Pension Point is currently €37.60 per month in East and West Germany. The insured gets this pension in addition to any gains. However, this only amounts to the contribution valuation limit of currently €87,600 (€85,200 E).

In addition, parenting periods count towards the minimum insurance period for pension entitlement, which is five years. If this is not achieved in spite of the offspring, then this can also be done Obtaining assistance through voluntary contributions to the Pension Fund.

Look times above that

In addition to child-rearing periods times are also considered I accepted. It begins after the day of birth and ends after ten years. These have an indirect positive effect on entitlement to the pension if the parents were employed while raising the child. Because the actual earnings are theoretically increased by this until they reach the average salary for a maximum of ten years, which also increases the payment into the pension fund. The average salary in 2023 is around 43,142 euros.

This applies provided the parent has completed 25 years with periods under the Pensions Act. Consideration times serve primarily However, to fill in the gaps in the insurance biography. Both child rearing and viewing periods It is only stored in the insurance account in the insurance record on demand.


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