People with disabilities who work in a workshop can already be entitled to a pension after 20 years. In this text you will learn how much money they get. And whether they can still continue to work.
A workshop for people with disabilities (WfbM) is not a normal business. People are employed here who are not or not yet able to work on the primary labor market. That’s why you can already get a pension for full reduction in earning capacity if you are still employed in a sheltered workshop. This also applies to so-called other service providers.
Who can receive a pension because of full reduction in earning capacity?
For people with disabilities who are employed by a WfbM or another service provider, there is a special feature under pension law: they can acquire entitlement to a pension due to full reduction in earning capacity. And this without having to fulfill the so-called general waiting period before the occurrence of the benefit case. The reason: If a reduction in earning capacity already exists from birth or since childhood, the general waiting period of five years, which is necessary for pension entitlement per se, cannot be fulfilled.
However, this group of people can qualify for a pension after a waiting period of 20 years. For example, the period of employment in a WfbM or with another benefit provider counts as a waiting period. Legally, this is regulated in paragraph 43, paragraph 6 of the Social Code, Book Six (SGB VI).
Example: Who since his 19. A person who is employed in a sheltered workshop before the age of 39 is entitled to a pension for full reduction in earning capacity. If entry into WfbM occurs at a later point in time, previous pension contribution periods can be counted towards the 20-year waiting period.
Who pays the contributions to the statutory pension insurance scheme?
Workshop employees do not have to make any contributions to the statutory pension insurance from their usually very low pay. This is done by the carrier of the workshop. Another special feature applies: the basis for calculating contributions is not actual earnings, but 80 percent of the average salary paid to all employees in the penultimate calendar year. This so-called reference value is regulated in paragraph 18 of the Fourth Book of the German Social Code (SGB IV).
How much pension for reduced earning capacity is there??
A pension is always calculated individually. In the eastern states, it’s usually a little less because of lower contribution payments. Of which contributions to health and long-term care insurance must be paid. With every subsequent pension increase, the respective reduced earning capacity pension also increases.
Those who are employed in a WfbM or by another benefit provider do not have to expect their pensions to be reduced. The remuneration in the workshop or with another service provider is not taken into account for the pension.
Can one continue to work with a pension for reduced earning capacity??
Receiving a pension for reduced earning capacity does not prevent employment in a WfbM or with another service provider. The disabled person is not in regular employment, but receives benefits for participation in working life.
What does one have to do to receive a retirement pension?
Those who already receive a pension due to full reduction in earning capacity do not have to work themselves in order to receive an old-age pension. The reduced earning capacity pension is automatically converted to an old-age pension when the so-called standard age limit is reached. In 2022, at the age of 65 years and 10 or 11 months, it is possible to. The standard retirement age will rise to 67 by 2030. Recognized severely disabled people can still receive an old-age pension early.