Overview
- Germany’s Federal Social Court (case B 5 R 6/24 R) ruled that pensions calculated using interim estimates cannot be reduced later based on employer reports for the estimated period.
- In the tested case, the insured had agreed to an estimate and later employer data were lower, leaving a 59-cent monthly surplus that the pension authority attempted to claw back before the court blocked the cut.
- Accepting an interim estimate speeds up the first payment but generally locks in the assumptions, which cannot later be corrected to a claimant’s detriment once the decision is final.
- Applicants expecting one-off payments in the final months—such as paid overtime, unused vacation payouts, or bonuses—risk a permanently lower pension if they choose an estimate instead of waiting for exact employer data.
- For those with steady or lower late-stage earnings, opting for the estimate can ensure timely payments without later downward adjustments, and reporting notes a planned 2027 legal change to make estimates compulsory with upward recalculation if actual income is higher.