Pension claims may be forfeited, particularly upon remarriage. However, there exists a financial startup aid: the pension severance pay.
Munich – It is indeed possible for retirees to lose their pension claims. This often applies to widows and widowers receiving survivor’s pensions who decide to remarry. By making such a choice, they forfeit the continuation of their survivor’s pension payments but may be eligible for a pension severance payment instead.
Increase in pension severance payments after remarriage
The German Pension Insurance (DRV) describes the severance payment as a startup aid for the new marriage. Over the past year, more widows and widowers have received this support after remarrying. According to current data from the DRV, which were provided to ihre-vorsorge.de, exactly 5,127 survivor’s pensions were terminated last year due to remarriage. This reflects a 3.2 percent increase compared to 2022.
How much is a pension severance payment?
The amount of severance pay primarily depends on whether it is a large or small survivor’s pension. In the case of a large widow’s pension, recipients generally receive two annual benefits based on the average pension amount of the last twelve calendar months, according to the DRV.
Pension severance payment – calculation example from the DRV:
Lea K. has been receiving a large widow’s pension since November 2021 due to the death of her partner. However, upon remarrying in March 2023, her survivor’s pension will end that very month. In the twelve months prior to the termination of her pension – from April 1, 2022, to March 31, 2023 – she received an average of 540 euros in widow’s pension, before deductions for health and long-term care insurance. Thus, the severance payment amounts to 24 times 540 euros, totaling 12,960 euros.
The so-called ‘sterbevierteljahr’ (quarter of a year of surviving spouse’s benefits) is not accounted for in this calculation. If personal income is factored into the survivor’s pension, then only the amount of the pension after income adjustment is counted. The severance payment for a small widow’s or widower’s pension will be lower, as these are typically paid for a maximum of 24 months.
How to apply for a pension severance payment?
To receive a pension severance payment, an application must be submitted. This can be done informally to the relevant pension insurance provider, according to the DRV. Along with the insurance number of the deceased partner, the new marriage or civil partnership certificate must also be presented.
