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Pension Timing and ‘Projection’ Choice Carry Lasting Costs in Germany as Court Limits Clawbacks

A single checkbox can lock lifetime payments, so applicants in 2026 should seek advice before opting for an income projection.

Overview

  • Consumer guidance highlights that filing late can permanently raise tax exposure, delay favorable health insurance status and reduce allowances, despite retroactive pension payments.
  • The application’s question 9.7.2 asks whether to project earnings for up to three months before the start date; accepting the projection can fix the calculation even if later actual pay would yield a higher pension.
  • Experts suggest declining the projection when one-off payouts such as unused vacation, overtime or bonuses are expected, and note it can suit cases with stable pay or recent part‑time shifts.
  • A rule change planned for 2027 would make projection the default and provide automatic upward adjustments when real earnings exceed the estimate.
  • A recent Schleswig‑Holstein regional social court ruling restricts recoupment after retroactive upgrades to the portion the claimant actually retained, while lawmakers are advancing a July 1, 2026 ‘new basic security’ with uniform 30% sanctions and a ‘three times plus one’ escalation for missed Jobcenter appointments.