VBL Pension Refund

If you’ve been working in Germany and contributing to a VBL pension plan, you may be eligible to request a VBL pension refund. The process can be quite complicated at times, so to save your time and maximize the results, you should understand how the process works, who qualifies, how your pension entitlements are calculated, and how to claim your refund, especially in relation to both the VBL and the German statutory pension scheme. Perhaps you are leaving Germany or you just want to understand the process better. Either way, this guide will help you with all the important steps.

Overview of the VBL Pension System

What is VBL?

The VBL (Versorgungsanstalt des Bundes und der Länder) is a supplementary occupational pension system designed for public sector employees in Germany. One of the main reasons it was founded was to provide additional retirement income besides the German state pension (Deutsche Rentenversicherung) and occupational pensions to ensure financial security during retirement.

The VBL pension is a company pension system, which means both employees and employers make paid contribution payments based on specific pension periods. It has become very important for public sector workers like university employees, healthcare professionals, and civil servants to plan for retirement with this pension. The reason for that is simple — It gives them extra financial support during retirement that the state pension might not fully cover.

There are specific regulations that the VBL operates under, which make it mandatory for most public-sector employees. However, there are also voluntary plans within the VBL that allow for additional pension contributions, which we will explore in the next section.

Types of VBL Pension Plans

There are two main types of German pension plans that affect your pension entitlement: VBLklassik and VBLextra, both of which play a crucial role in preparing employees for their retirement age.

• VBLklassik 

VBLklassik is the standard, defined-benefit pension plan under one of the occupational pension schemes where pension contributions are made by both the employer and employee. The amount of German pension you receive under VBLklassik depends on the number of years you worked and your gross salary level, and the pension points you have accumulated. VBLklassik is the default pension scheme for most public-sector workers and provides a stable payout when you retire. 

• VBLextra

Unlike VBLklassik, VBLextra is a voluntary pension plan. Basically, this means that employees can decide if they want to join or not. If they do, they have to make additional pension contributions into the plan to increase their German pension payout. The more they pay in, the more they will get out later from a statutory pension insurance scheme. Again, this plan is optional and can be used to add to the defined benefits of VBLklassik.

Who is eligible for a refund?

Not everyone can get their VBL contributions back from the compulsory insurance scheme. But there are some cases where people may be able to get a refund:

• You are a non-German citizen who used to work in Germany’s public sector and contributed to an occupational pension plan.
• You do not plan to retire under the German system.
• You are no longer employed in Germany’s public sector.
• You have left Germany and do not plan to return to work in the country.
• You have not accrued enough time in the system to qualify for full pension benefits.

If you meet these conditions, you may be able to claim your pension payments back instead of waiting for German pension payouts during retirement.

Claiming Your VBL Pension Refund

When can I request a refund?

You can request a VBL pension refund after leaving Germany or when you permanently exit the public sector in Germany, especially if you wish to reclaim your accrued pension entitlements. However, it’s also important to mention that you might have to wait for a specific period of time before you can start officially applying for the refund of your pension payments from statutory pension insurance. You usually have to wait for at least two years after you stop contributing to the pension institution before you can file a claim.

How to apply for a VBL pension refund

To get your VBL pension refund, you need to fill out an application and send it to the VBL. You can do this online or by mail. The VBL website has all the information you need, including instructions and forms. You’ll need to give them some personal information, like your name, address, and your employment contract details to prove that you no longer live in Germany and work in the public sector.

Necessary documents for a refund claim

The application process for a VBL pension refund requires a number of documents that confirm your identity, employment history, and compulsory contributions to the statutory pension scheme:

• A completed refund application form.
• Proof of your previous employment in Germany’s public sector (e.g., employment contracts, salary slips) to verify your compulsory insurance contributions.
• Passport or ID copy.
• Official documentation proving your residence outside Germany (if applicable).
• Tax forms and social security information from your home country.

Refund Amount Calculation

How is the refund amount calculated?

The amount of money you get back as a refund can vary depending on your contributions and the specific terms of the pension schemes in which you participated. Usually, only the contributions you made are refunded (not your employer’s). However, the exact amount of your German pension refund can vary based on how long you contributed, the pension points you earned during your contributions, and whether you were part of VBLklassik or VBLextra. 

For VBLklassik, refunds usually only cover your contributions, not your employer’s. On the other hand, VBLextra takes into account both your own contributions and any extra voluntary contributions you may have made.

If you want to get a ballpark figure of your possible pension refund, then consider using a German pension refund calculator, which can be extremely useful in your case. This calculator considers important details like how long you have contributed, your salary, and the type of pension plan you have. It also includes any extra payments you made. By entering this information, the calculator can estimate how much money you might get. Whether you contributed to VBLklassik or VBLextra also affects the result. VBLextra offers more flexibility in refund amounts because it includes voluntary contributions.

Factors influencing the refund sum

Several factors can affect the total sum of your refund:

• Duration of contribution: The more years you’ve contributed to VBL, the higher the refund, up to a certain point.
• Plan type: Whether you are enrolled in VBLklassik or VBLextra will affect how much you get back.
• Tax deductions: Taxes might lower how much money you get back. This is the case if you have to pay taxes on your refund in Germany and your home country.
• Exchange rates: When you get a refund in a currency different from euros, the exchange rate can change how much money you actually get back.

Example calculations

Let’s say you worked in Germany for three years and contributed €2,000 per year to your VBL pension. Your total contribution would be €6,000. However, depending on the plan you were enrolled in and any administrative fees, your refund may be less than the total amount you contributed.

In another example, if you contributed to VBLextra and made additional voluntary contributions, your refund might be larger, especially if your investments performed well during your contribution period.

Cross-border Pension Refunds

Working outside Germany: Can I still claim a refund?

Yes, you can still get your VBL pension refund if you used to work in Germany’s public sector but now live in another country, even within the European Union. But you’ll need to provide extra documents, like proof that you live outside of Germany, to confirm your status.

Refunds for cross-border workers

If you live in one country and work in another, like in the European Union, there can be special rules for getting your VBL refunds under the occupational pension scheme. If you worked in Germany but lived in a different EU country, the process to get your refund may be different.

However, European Union regulations still make it easier for citizens of member countries to get a german pension refund and move their pension rights across borders. There are agreements that help coordinate social security systems, but the process might take longer if you live abroad. Cross-border workers may have to take extra steps, like making sure they follow tax laws in both Germany and the country they now live in.

Tax implications for cross-border refunds

When you get your German pension refund, you may have to pay taxes on it. This can be confusing, especially if you live in another country. Also, it is worth mentioning that Germany might take some taxes out of your refund. You may also have to pay taxes on the refund in your home country. But there are agreements between Germany and other countries that can help with this. If you still can’t get the hang of this process, then make sure to talk to a tax expert to make sure you understand the tax rules for your refund correctly and don’t have to pay taxes twice.

FAQs

How long does the refund process take?

The VBL pension refund process may take a few months. This depends on how fast your documents are processed and if there are any issues with your application. On average, you can expect to wait 3 to 6 months from the time you submit all the needed documents.

Can I receive the refund in my home country?

Yes, you can get your VBL pension refund in your home country. VBL will send the money straight to your bank account. But you might need to give them some extra bank details, like an IBAN or SWIFT code, depending on your country.

Contacting VBL for additional support

If you need help getting a refund, you can reach out to VBL directly. They have people who can speak different languages and can explain what you need to do and what you can get a refund for. They also have a website with step-by-step instructions and forms you can download to apply for a refund.

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