If you’ve been working in Germany and contributing to a VBL pension plan, you may be eligible to request a VBL pension refund.
The process can be quite complicated at times, so to save your time and maximise the results, you should understand how the process works, who qualifies, how your pension refund is calculated, and how to claim your refund, especially in relation to both the VBL and the German statutory pension scheme.
Perhaps you are leaving Germany or you just want to understand the process better. Either way, this VBL pension refund guide will help you with all the important steps.
Overview of the VBL Pension System
What is VBL?
The VBL (Versorgungsanstalt des Bundes und der Länder) is a mandatory supplementary occupational pension system designed for public sector employees in Germany.
One of the main reasons it was founded was to provide additional retirement income besides the German state pension (Deutsche Rentenversicherung) and occupational pensions to ensure financial security during retirement.
The VBL pension is a company pension system, into which both employees and employers have paid contribution payments. It has become mandatory for public sector workers like university employees, healthcare professionals, civil servants, and researchers to plan for retirement with this pension.
The reason for that is simple — It gives them extra financial support during retirement that the state pension might not fully cover.
There are specific regulations that the VBL operates under, which make it mandatory for public-sector employees. However, there are also voluntary plans within the VBL that allow for additional pension contributions, which we will explore in the next section.
Types of VBL Pension Plans
There are two main types of German pension plans that affect your pension entitlement: VBLklassik and VBLextra, both of which play a crucial role in preparing employees for their retirement age.
VBLklassik
VBLklassik is the standard, defined-benefit pension plan under one of the occupational pension schemes where pension contributions are made by both the employer and employee.
The amount of German pension you receive under VBLklassik depends on the number of years you worked and your gross salary level, and the pension points you have accumulated.
VBLklassik is the default pension scheme for public-sector workers created to provide a stable payout when you retire.
VBLextra
Unlike VBLklassik, VBLextra is a voluntary pension plan. Basically, this means that employees can decide if they want to join or not. If they do, they have to make additional pension contributions into the plan to increase their German pension payout. The more they pay in, the more they will get out later from a statutory pension insurance scheme.
Again, this plan is optional and can be used to add to the defined benefits of VBLklassik.
It’s worth mentioning that employers often suggest VBLextra to expats, as it doesn’t require staying in Germany for five years like VBLklassik. VBLextra allows retirement benefits to be claimed based on contributions from the very first payment, without a minimum qualifying period.
However, VBLextra isn’t refundable, which can be an issue for expats who prefer a refund to invest in their retirement abroad.
Who is eligible for a refund?
To claim a refund from the compulsory insurance scheme, you must meet the following 5 criteria:
You left the German public sector
You worked in an old state* of Germany
Your contribution period is less than 60 months
You have not paid additional contributions to “VBL extra”
You are younger than 69 years old
*The old states of Germany (also: West Germany) are: Baden Württemberg, Bavaria, West Berlin, Bremen, Hamburg, Hesse, Lower Saxony, North Rhine-Westphalia, Rhineland-Palatinate, Saarland, Schleswig-Holstein.
If you meet these conditions, you could claim your VBL pension payments back.
Those who have contributed to the VBL in the states previously known as East Germany (Brandenburg, East Berlin, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt, Thuringia) cannot claim a pension refund.
A refund of VBLextra is generally impossible. Should you switch from VBLklassik to VBLextra, your VBLklassik contributions paid before are locked.
Claiming Your VBL Pension Refund
When can I request a refund?
You can request a VBL pension refund right after you exit the public sector in Germany. Contrary to claiming a German pension refund from the Deutsche Rentenversicherung, to claim your VBL pension refund, you do not have to wait for 2 years, or live in a non-EU country.
Please note that once you have qualified for retirement benefits after 5 years of contributions, your accrued pension benefits are no longer refundable.
How to apply for a VBL pension refund
To get your VBL pension refund, you need to fill out the VBL refund application documents and mail them along with supporting documents to the VBL.
This is where we come in – we give all the necessary information that is relevant specifically to your case and guide you through this process.
Note that you'll need to give your employment contract details to prove that you have left the German public sector and if you have already left Germany, your deregistration confirmation is required.
Necessary documents for a VBL refund claim
The application process for a VBL pension refund requires a number of documents that confirm your identity, employment history, and compulsory contributions to the statutory pension scheme:
A completed refund application form.
Proof of your previous employment in Germany’s public sector (e.g., employment contracts, salary slips) to verify your compulsory insurance contributions.
Proof of current non-public sector employment (if applicable)
Valid Passport or ID copy.
Official documentation proving your residence outside Germany (if applicable).
Deregistration confirmation
Tax forms and social security information from your home country.
VBL Refund Amount Calculation
How is the refund amount calculated?
Public service employees in the old states of Germany (West Germany) pay mandatory VBLklassik contributions of 1.81% of their taxable salary.
This is much less than the 9.3% contribution you also have to pay to the state pension.
The amount of money you get back in a refund equals the amount you contributed to the VBL pension scheme VBLklassik.
Usually, only the contributions you made are refunded (not your employer's, who paid 5.49%).
If you want to get a ballpark figure of your possible pension refund, then consider using a German pension refund calculator, which can be extremely useful in your case. This calculator considers important details like how long you have contributed, and the type of pension plan you have.
It also includes any extra payments you made. By entering this information, the calculator can estimate how much money you might get. Whether you contributed to VBLklassik or VBLextra also affects the result.
Factors influencing the refund sum
Several factors can affect the total sum of your refund:
Duration of contribution: The more years you’ve contributed to VBL, the higher the refund, up to a certain point. Once you have reached 60 monthly contributions, a refund is no longer possible.
Plan type: Whether you are enrolled in VBLklassik or VBLextra will affect how much you get back. VBLextra contributions cannot be refunded.
Tax deductions: Taxes might lower how much money you get back. This is the case if you have to pay taxes on your refund in your home country after you have received the refund.
Exchange rates: When you get a refund and your bank account is in a currency different from Euros, the exchange rate and costs of money transfer can affect how much money you actually get back. If you use our services to claim your refund, we will help you optimize the transaction and reduce the costs involved.
Example calculations
Let’s say you worked in Germany for three years with a salary of €6,000 Euros in the public sector. You would have contributed 108.60 Euros per month to the VBLklassik. After three years, your total contribution would be €3,910.
If you qualify for a refund, you can get that amount refunded.
If you are a non-European Union citizen, and you currently live outside the European Union, you could also claim a refund of your state pension contributions - often referred to as a German pension refund.
Based on the same exemplary calculation as above, due to the much higher pension contribution rate of 9.75% you would have contributed a substantial amount of €20,088.
To qualify for this refund, you would have to wait for 24 months after the last month of contribution - these additional rules such as your citizenship, country of residence and waiting period do not apply for VBL pension refunds.
VBL Cross-border Pension Refunds
Living outside Germany: Can I still claim a refund?
Yes, you can still get your VBL pension refund if you used to work in Germany's public sector but now live in another country, even within the European Union. But you'll need to provide extra documents, like proof that you live outside of Germany, to confirm your status.
Refunds for cross-border workers
f you live in one country and work in another, in the European Union, there can be special rules for getting your VBL refunds under the occupational pension scheme. If you worked in Germany but lived in a different EU country, the process to get your refund may be different. No matter the complexity and your particular case, we will help you get your German pension refund. Since 2015, we have been helping people just like yourself who worked in the public service sector not only claim their German pension refund (state pension) but also claim a refund of their VBL contributions. With our expertise, we'll make sure you receive the pension refunds you are entitled to, regardless of your unique circumstances.
Tax implications for cross-border refunds
When you get your German pension refund whether it is a state pension refund and/or a VBL pension refund, you may have to pay taxes on it, depending on your local tax regulations. If you still can’t get the hang of this process, then make sure to talk to a local tax expert to make sure you understand the tax rules for your refund in your country of residence
FAQs
How long does the VBL refund process take?
The VBL pension refund process may take a few months. This depends on how fast your documents are processed and if there are any issues with your application. On average, you can expect to wait 4 to 6 months from the time you submit all the needed documents.
We can help you speed up the process - on average, our customers get a refund of their pension contributions within 8 weeks.
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