Federal Social Court approves income calculation for new basic pension supplement - German Court Upholds Spousal Income Rules for Retirement Pension Supplements
A federal court in Germany has upheld rules requiring retirees to include their spouse’s income when calculating eligibility for the basic pension supplement. The decision follows a challenge from a retiree in North Rhine-Westphalia who currently receives no supplement due to her husband’s earnings.
The ruling confirms that the current system remains constitutional, despite claims it unfairly disadvantages married couples.
The basic pension supplement was launched in 2021 to support low-income retirees who, despite decades of work, still fall short of an adequate pension. To qualify, individuals must have contributed for at least 33 years, with allowances for child-rearing or caregiving periods. Of the 2.8 million retirees meeting the basic criteria, only 1.4 million automatically receive the supplement without needing to apply.
The court stressed that the supplement serves a social purpose, giving lawmakers wide flexibility in its design. It rejected arguments that including spousal income discriminates against married couples, noting that this approach allows for fully automated, bureaucracy-free processing. The judges also ruled that the policy does not violate constitutional rights, as the supplement is a non-contributory benefit funded entirely by taxpayers.
In the case at hand, the plaintiff—a retiree from North Rhine-Westphalia—would have qualified for a €37 monthly supplement if her husband’s income were excluded. Under current rules, however, she receives nothing because their combined earnings exceed the threshold.
The court’s decision underscores that the supplement aims to prevent some retirees from needing welfare assistance. By factoring in spousal income, the system ensures taxpayer-funded support remains targeted at those most in need.
The ruling maintains the status quo, meaning married retirees will continue to have their spouse’s income considered when applying for the supplement. For now, the 1.4 million who already receive the benefit automatically will see no change. The decision also closes the door on further legal challenges to the current assessment method.
