Wondering how to get your VBL pension refund? This easy guide breaks down everything you need to know, from eligibility to the application process, making it simple and stress-free for expats.
14 October 2024
| Last updated on 21 October 2024VBL Pension Refund: What's the Deal?
Worked in Germany’s public sector and now wondering if you can get your pension contributions back? You’ve come to the right place!
This guide will walk you through the whole VBL pension refund process, from checking if you’re eligible, to calculating how much you can actually expect. Whether you're leaving Germany already or just curious about your future refunds – we’ve got you covered!
Overview of the VBL Pension System
What is VBL?
Ever heard of the VBL (Versorgungsanstalt des Bundes und der Länder)? In plain English, it's basically the pension system for public sector workers in Germany. If you ever had public service jobs in education, healthcare, research etc., you probably were paying into it. Think of it as an extra layer of financial security on top of the state pension.
But here’s the best part — if you’ve left the public sector, you may be able to get those contributions back. Isn’t it amazing?
Types of VBL Pension Plans
There are two main types of VBL plans you should know about:
- VBLklassik: If you were a public sector worker, then it must have been your type by default. Both you and your employer pay the contributions, and your retirement payout depends on how long you worked and how much you earned.
- VBLextra: This one is voluntary. You can decide to make bigger contributions if you want to save some extra money for retirement.
Important note! Employers often recommend VBLextra to expats since it offers benefits without needing to stay in Germany for five years. However, VBLextra isn’t refundable, which could be a downside for expats who want a refund.
Who is eligible for a refund?
Want to know if you’re eligible for a refund? You qualify for a refund if:
- You’ve left your German public sector job.
- You worked in an old state* of Germany
- You paid into VBLklassik for less than 60 months.
- You have not paid additional contributions to "VBL extra"
- You’re under 69 years old.
*Baden Württemberg, Bavaria, West Berlin, Bremen, Hamburg, Hesse, Lower Saxony, North Rhine-Westphalia, Rhineland-Palatinate, Saarland, Schleswig-Holstein.
If you meet these criteria, you're in luck! But if you worked in a "former East Germany" state*, or contributed to VBLextra, no refunds for you.
*Brandenburg, East Berlin, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt, Thuringia.
Claiming Your VBL Pension Refund
When Can You Apply?
As soon as you leave your German public sector job, you can apply for a refund. No need to wait two years like you would with the state pension. But if you’ve worked for more than five years, you can’t receive a refund.
How to apply for a VBL pension refund as an expat?
Here is a list of documents you are going to need:
- Application form (Don't worry, Germany Pension Refund can help you fill it out).
- Proof of employment (contracts, pay slips—whatever shows you worked there).
- Proof of current non-public sector employment (if applicable)
- Your ID (passport, ID card, etc.)
- Official proof that you live outside of Germany
- Deregistration confirmation (if you’ve officially left Germany).
- Tax forms and social security information from your home country.
Got everything? Great! Now, you just send it off to VBL and wait for the refund to appear in your account.
Refund Amount Calculation
How is the refund amount calculated?
Alright, let’s talk about money now. Your refund will only include the contributions you made into VBLklassik—so don’t expect your employer’s part. This is about 1.81% of your salary.
Want to know exactly how much of your contributions you could get back? Try using a Germany pension refund calculator to get a ballpark figure based on your salary and years you worked in Germany.
Factors influencing the refund sum
Several things can affect how much your VBL refund, including:
- How long you’ve contributed: The longer you’ve paid into VBL, the bigger your payout—up to a certain point! After 60 months of contributions, the refund option is no longer available.
- Which plan you’ve got: VBLklassik? You’re in luck—you can get a refund! But with VBLextra, there’s no refund.
- Taxes (ugh, right?): Sadly, taxes can take some part out of your refund if you owe them in your home country.
- Exchange rates: If your bank account currency isn’t in Euros, then exchange rates and transfer fees can lower the refund. But don’t worry—Germany Pension Refund can help you optimise the process to minimise expenses!
Example calculations
Let’s say you spent three years working in Germany with a monthly salary of €6,000 in the public sector. You’d have been paying €108.60 into VBLklassik each month which will be €3,910 in total three years after. What’s amazing is that if you’re eligible, you can get all that money back!
Now, for non-EU folks living outside the EU, there’s also a chance to claim your state pension refund—yes, your German pension money! With a higher contribution rate of 9.75%, you’d have put away €20,088 over those same three years. The catch? You’ve got to wait 24 months before you can claim that sweet refund. But hey, it is definitely worth the wait!
Cross-border Pension Refunds
Working outside Germany: Can I still claim a refund?
Wondering if you can still get your refund if you’ve left Germany? Good news—you can! If you’re living in one EU country and working in another, like Germany, the VBL refund process can get a bit tricky thanks to special cross-border rules.
But don’t stress, Germany Pension Refund has got your back! Since 2015, they've been helping people navigate the process of claiming both their German state pension and VBL refunds. Whatever your situation, their expert team make sure you get the German pension refund you deserve!