Reduced ability to work
In Germany, reduced earning capacity is a term used in statutory pension insurance . The term is the generic term for reduced earning capacity and for the reduced professional ability in mining .
According to the legal definition, a person who is unable to work for at least three hours a day under the normal conditions of the general labor market due to illness or disability is fully disabled . Those who can work for at least six hours a day under the usual conditions of the general labor market are not reduced earning capacity ( SGB VI).
Unlike the degree of disability , reduced earning capacity relates exclusively to performance in working life and not to participation in life in society.
If there is a reduction in performance as a result of an accident at work or an occupational disease, one speaks of a reduction in earning capacity , which is offset at the expense of the statutory accident insurance ( Seventh Book of the Social Code ). However, if there is also a reduction in earning capacity, claims can be made against both insurance carriers.
Victims of a crime can, depending on the degree of the consequences of the damage, receive a damaged pension according to the Victims Compensation Act to compensate for the health and economic consequences, for example if their workforce is impaired .
Requirements for a pension due to reduced earning capacity
With the law on the reform of pensions due to reduced earning capacity of December 20, 2000 ( Federal Law Gazette I, p. 1827 ), pensions due to reduced earning capacity were newly regulated on January 1, 2001. Since then, people with reduced earning capacity have been unable to work for less than six hours a day under the usual conditions of the general labor market. The reason for the reduced earning capacity does not matter in principle. However, an exception applies to cases in which the reduced earning capacity was brought about on purpose ( ff. SGB VI). A distinction is made between full disability, partial disability and (temporary) partial disability in the event of occupational disability.
In addition, the insurance law requirements must be met. In the last five years before the reduced earning capacity commences, the applicant must prove a total of three years of mandatory contributions for an insured employment or activity and, before the reduced earning capacity commences, the general waiting period , which is basically five years for a pension due to reduced earning capacity ( (1) no. 2 SGB VI). The applicant must therefore have belonged to the group of people insured in the statutory pension insurance for at least a total of five years prior to the occurrence of the reduced earning capacity.
Fully incapacitated persons are insured who, due to illness or disability, are unable to work for at least three hours a day under the usual conditions of the general labor market for the foreseeable future. This also includes disabled people who work in a workshop for disabled people or a workshop for the blind or are housed in an institution and perform certain work or services there.
The term “for the foreseeable future” means a period of more than six months.
Regardless of this time limit, however, certain qualitative restrictions can also lead to a complete reduction in earning capacity, even if there is still more than three or even more than six hours of capacity. Such restrictions include, for example, the so-called ability to travel, i.e. the ability to be able to reach a workplace at all, or the sum of many, unusual restrictions, as well as the need for breaks that are unusual for the company. In these cases, too, competitive employment is no longer possible.
In the case of partial disability, a pension for full disability can be granted as a so-called labor market pension if the (part-time) labor market is considered closed. This is the case if the insured person has not held a (part-time) job that corresponds to his residual performance for more than a year or if he cannot be offered one. The partial disability proposes then in full by .
Partly reduced earning capacity
In some cases, insured persons with reduced earning capacity are unable to work for at least six hours a day due to illness or disability under the normal conditions of the general labor market. So there is still a remaining capacity of between three and six hours a day, which allows a corresponding part-time employment.
Partial reduction in earning capacity in the event of occupational disability
Up until December 31, 2000, the statutory pension scheme differentiated between disability and occupational disability:
Inability to work existed when insured persons were unable to work regularly due to illness or disability for the foreseeable future, or to earn wages or income that exceeded one seventh of the monthly reference figure (Section 18 SGB IV). Those who were self-employed or who were able to work full-shift were not unable to work. The respective labor market situation was not taken into account.
Occupation Unable were insured whose earning capacity due to illness or disability to less than half that of physically, mentally and emotionally healthy policyholders with similar training and equivalent knowledge and skills had declined. Accordingly, the insured could no longer be able to carry out the professional activity he had learned or the last professional activity that was not only temporarily exercised, or a reasonable referral activity.
However, not every activity enjoyed so-called occupational protection . According to the multi-level scheme for comparative occupations developed by case law for blue-collar and white-collar workers , it was necessary to check which main occupation the last activity was to be assigned and which socially, technically and health-wise reasonable referral activities the insured could then be referred to. In the case of unskilled workers, for example, there was never an occupational disability, as the insured person could always be referred to all unskilled activities on the general labor market.
The disability pension was 2/3 of the disability pension.
The law on the reform of pensions due to reduced earning capacity, which came into force on January 1, 2001, abolished the disability pension for new pensioners. According to the old regulation, only insured persons who were born before January 2, 1961 can receive a disability pension from the statutory pension insurance. To this extent , they enjoy protection of trust if they can no longer work in their traditional occupation. The pension for this group of people is now called a pension due to partial reduced earning capacity in the event of occupational disability ( SGB VI). Insured persons are entitled to such a pension who for health reasons could still work for six hours or more (on the general labor market), but no longer in their learned or an equivalent profession. The pension for partial disability in the event of occupational disability is half as high as the pension for full disability.
Since January 1, 2001, the risk of occupational disability can only be covered by private disability insurance for younger insured persons.
If any work can be carried out for at least six hours a day, there is no disability. Any referral is possible; social decline is acceptable. The pension insurance agency no longer has to name specific referral activities. It is sufficient if, on the basis of medical reports , it is shown under what conditions and with what possible restrictions employment is possible (e.g. only light work, only while sitting, without noise ). A specific referral activity only needs to be named if there are exceptional service restrictions.
Example: A manager, born in 1962 or younger, can no longer perform his previous management duties, but can still work as a packer for six hours a day. He is not disabled. He is not entitled to a disability pension.
Determination of the remaining capacity
The remaining benefits are assessed by the doctors employed by the pension insurance company, if necessary with the support of external medical experts. The appraiser is commissioned by the respective insurance company in the pension application and objection procedure. According to the will of the legislature, the assessment of the remaining capacity must be complete, comprehensive and taking into account the interactions of the various diseases. The assessment is difficult in particular in the case of rare diseases and diseases in which only little or nothing can be objectified with x-ray examinations, laboratory measurements, etc.
The social court also determines the facts ex officio ( SGG). At the request of the insured person, however, a specific doctor must be given an expert opinion ( SGG). The hearing is regularly made dependent on the applicant making an advance payment and, subject to a different decision by the court, ultimately bearing the costs. The costs of such an assessment are not covered by legal aid , but are covered by any legal protection insurance .
Pension amount and duration
The amount of the pension depends on the entitlements achieved at the time of retirement. If the pension does not cover the subsistence level , there may also be a claim to basic security in old age and in the case of reduced earning capacity .
The pension insurance institutions provide regular information about the amount of the pension benefits to be expected and also provide information on a case-by-case basis (SGB VI). If necessary, they also advise on questions relating to basic social security ( SGB VI).
To calculate the amount of the disability pension, as with the old-age pension, the earnings points achieved up to the point of retirement are taken as a basis. Takes the disability before reaching the standard retirement age one, the time between the onset of disability and reaching the standard retirement age is a supplementary period added. As a result, those who can no longer work due to their reduced earning capacity receive a pension as if they had continued to make contributions until reaching the standard retirement age as they did until the reduced earning capacity began.
If the pension commences before July 1, 2014, the accrual period ends when the person reaches the age of 60, and from 2014 to 2017 it ended when the person reaches the age of 62. In February 2017, the federal government passed a draft law to gradually increase this limit to the age of 65 from 2018 to 2024. Instead, at the initiative of the new federal government , the RV Performance Improvement and Stabilization Act came into force at the end of 2018, which means that the imputation time for new pensions in 2019 rose immediately to the standard retirement age of 65 years and 8 months, and then parallel to the standard retirement age to 67 years increases in 2031.
If a reduction in income that occurred in the last four years before the reduced earning capacity occurred had a negative effect on the amount of the pension, the reduced income will no longer be taken into account in the assessment of the attribution period. This regulation applies to new pensions from July 2014.
For each month that retirement begins before the age of 64 (as of 2018), the access factor is reduced by 0.003, to a maximum of 0.108, corresponding to a pension reduction of 10.8% if retirement is before the 61st birthday. (This age limit will also be gradually increased from the original 63 years to 65 years by 2024.) The full disability pension has pension type factor 1, the partial disability pension has pension type factor 0.5.
The monthly pension averaged 711 euros in 2015 with full disability.
Pensions for reduced earning capacity are usually only paid for a limited period of up to a total of nine years for a maximum of three years. Only then can an unlimited grant be considered. The pensions are paid until the end of the calendar month in which the beneficiaries died (SGB VI).
A disability pension does not require that the applicant or recipient give up any employment. He may well utilize his remaining capacity and pursue a corresponding activity.
If, in addition to the pension, an insured person earns an income from dependent employment or self-employment, the pension according to additional earnings limit is exceeded. In doing so, certain wage replacement benefits are equivalent to the earned income, for example sick pay from statutory health insurance or injury benefits from statutory accident insurance.SGB VI will not be paid in whole or in part if the relevant
- The additional earnings limit is
- in the case of retirement due to full disability 450 euros (since January 1, 2013)
- in the case of pensions due to partial disability, 0.81 times the monthly reference value , multiplied with the highest number of earnings points achieved in one of the last 15 calendar years prior to the occurrence of partial disability, with at least 0.5 points being applied. In 2019, it is therefore possible to earn an additional 1162 euros without reducing the pension. If the individual limit is exceeded, 40% of the excess amount will be offset against the pension ( SGB VI).
With both types of pensions, the maximum pension is paid in such a way that the (possibly reduced) pension and additional earnings do not exceed an "additional earnings cap". The additional earnings cap is the monthly reference value multiplied with the highest number of earnings points that was achieved in one of the last 15 calendar years before the start of retirement, corresponding to the highest annual salary of the last 15 years before the start of retirement; However, at least the sum of the full pension and the above additional earnings limit.
- According to
Paragraph 2, Sentence 3, SGB VI or Paragraph 8, SGB VI
, the following are not considered additional earnings
- Benefits for care activities of a carer up to the amount of the corresponding care allowance of the care insurance
- Income generated in a workshop for disabled people or in a similar facility and
- Until September 30, 2015 expense allowances for municipal honorary officials, for volunteers in municipal representative bodies or for members of the self-governing bodies, insured elders or confidants of the social security agencies, provided that no specific loss of earnings is compensated.
In 2011, around 1.63 million people received pensions due to reduced earning capacity, of which around 1.61 million were due to total reduced earning capacity and around 102,000 people received a pension due to partial reduced earning capacity. The average contribution after deducting health and long-term care insurance was 596 euros.
Since January 1, 2005, the ability to work has also been a criterion for whether there are entitlements according to SGB II to unemployment benefit II or according to SGB XII to social assistance . Anyone who is permanently and fully disabled receives basic security in old age and in the event of reduced earning capacity according to the fourth chapter ( ff. SGB XII), in the case of temporary full reduction in earning capacity support for livelihood according to the third chapter ( ff. SGB XII) comes into consideration. Those who are partially incapacitated receive unemployment benefit II according to SGB II, even if they are drawing a labor market pension.
The respective responsible pension insurance agency decides on the ability to work with binding effect for all other statutory service providers ( job centers , employment agencies , professional associations , social welfare agencies - (2) SGB II).
In Austria, the comparable benefit for employees is referred to as the disability or occupational disability pension , while that for farmers, self-employed and tradespeople is referred to as the disability pension .
In Switzerland, benefits in kind and in cash in the event of disability are regulated in the federal law on disability insurance .
- Incapacity (of civil servants)
- Pension due to reduced earning capacity (information from the German Federal Pension Insurance (formerly BfA))
- If it does not work for six hours a day , pension due to reduced earning capacity, SoVD Zeitung, Part 2, No. 4, April 2007 (PDF file; 38 kB)
- See the heading to §§ 43 ff SGB VI ; also SGB VI
- SGB VI
- § 44 paragraph 2 SGB VI as amended until December 31, 2000
- § 43 Paragraph 2 SGB VI i. d. F. until December 31, 2000
- Law on the reform of pensions due to reduced earning capacity of December 20, 2000 ( Federal Law Gazette I, p. 1827 )
- German Federal Pension Insurance ( Memento of the original from May 12, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- The change was introduced by the RV Performance Improvement Act of 23 June 2014 ( Federal Law Gazette I p. 757 )
- https://www.test.de/Erwerbsminderungsrente-Wie-viel-drin-ist-wenn-es-nicht-mehr- /
- Facts and figures on the disability pension ( Memento of the original from July 14, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , last accessed February 2, 2017.
- Section 96 a (2) No. 1 SGB VI in the version of the law on changes in the field of marginal part-time employment dated December 5, 2012 (Article 4 No. 11, Federal Law Gazette I p. 2474, valid from January 1, 2013) 2476 )
- DRV: Pension Insurance in Time Series (PDF; 8.9 MB)