Pensions and Comparable Payments That Are Not Considered Income
The German Ministry of Finance has determined that “old-age pensions and pensions on account of reduced earning capacity, occupational accident, occupational illness, or death, or comparable benefits” should not be included in calculating an applicant’s income for the purpose of an application to the Article 2 Fund.
According to the German Ministry of Finance, the following pensions and comparable payments or benefits are not considered income for Article 2 Fund purposes:
- Old-age pensions, pensions on account of death (in particular, widow’s/widower’s pensions) or on account of reduced earning capacity (pensions on account of a fully or partially reduced earning capacity, and, for a transitional period, occupational disability pensions, invalidity pensions) paid by the statutory pension insurance providers.
- Old-age pensions, surviving dependents’ pensions and pensions on account of reduced earning capacity paid by the provider of old-age security schemes for farmers.
- Job-related injury or illness benefits or surviving dependents’ pensions paid by the statutory accident insurance providers.
- Retirement pensions including benefits payable to surviving dependents and occupational accident retirement pensions resulting from employment or the holding of an office under public law, and comparable income paid by the providers of retirement insurance schemes for members of parliament.
- Pensions (old-age pensions, surviving dependents’ pensions or pensions on account of reduced earning capacity) paid by public insurance or pension institutions for certain professions.
- Pensions (old-age pensions, surviving dependents’ pensions or pensions on account of reduced earning capacity) agreed within the context of an employment relationship (occupational pensions).
- Pensions paid by providers of private life or pension insurance or general accident insurance, and benefits paid under other private retirement pension schemes.
- IRA distributions do not count as income – however, interest from IRA does counts as income. Please note unlike the principal of 401K program, the principal of an IRA account is considered an asset.
Further details regarding the pensions and other sorts of benefits which are not to be included in calculating income for purposes of the Article 2 Fund may be announced on the Claims Conference website.