A major miscalculation in Germany’s pension administration has led to millions of retirees paying too much for their long-term care insurance contributions. According to recent media reports, pension statements were miscalculated for all 22 million pensioners in the country — resulting in an overcharge totaling €11 million in July 2025 alone.
Error in Nursing Care Contribution Backpayment
The problem stems from a backpayment introduced to adjust the nursing care insurance contribution rate, which increased from 3.4% to 3.6% in January 2025. While employees began paying the higher rate at the beginning of the year, pensioners were scheduled to pay a lump-sum adjustment with their July pension payment.
However, a crucial error occurred in the process: pension statements were miscalculated by basing the backpayment on the increased July pension amount, rather than on the actual amounts received between January and June — when the lower rate was still in effect.
This mistake led to each pensioner overpaying by a small amount (about €1 for a €2,400 monthly pension), but collectively, the system collected €11 million more than legally due.
Government Refuses Reimbursement
Despite the clear error, the German Federal Ministry for Social Affairs has stated that no reimbursement will be made. In an interview with Bild, Social Minister Bärbel Bas confirmed the overcharge but said there were no plans to issue refunds.
This position has sparked criticism from advocacy groups. Reiner Holznagel, president of the German Taxpayers Federation, criticized the government’s stance: “It’s not fair to the pensioners,” he said. Holznagel is demanding that the overpaid contributions be returned, and that transparency be ensured moving forward.
This case has fueled a growing debate about how errors in pension statements miscalculated by the government are handled — and how to restore confidence in Germany’s social security system.
Broken Trust in the Pension System
The incident highlights broader issues in the country’s pension system, particularly around data accuracy and error correction. It’s not the first time that pension statements have been miscalculated, but the sheer scale of this error makes it particularly alarming.
Experts warn that even small errors can have long-term consequences, especially when they affect millions of pensioners who rely on accurate monthly payments to plan their budgets. The fact that pension statements were miscalculated by using incorrect base values raises questions about how effectively the pension insurance system is monitored.
What Retirees Can Do Now
While the government currently refuses to offer reimbursements, financial and legal experts suggest that pensioners review their July statements closely and consider filing formal objections. Consumer protection organizations across Germany are starting to offer legal advice and template letters for retirees who wish to dispute their charges.
Until now, the government has not announced any initiative to proactively correct the issue — despite widespread media attention and public concern. If pension statements remain miscalculated without correction, trust in the system could further erode.
Political Pressure Rising
Political parties and taxpayer advocacy groups are now increasing pressure on the Ministry to revisit the decision. Calls are growing for a comprehensive audit of the July 2025 pension payments and a commitment to automatically refund all overcharged retirees.
If action is not taken soon, many fear this will set a troubling precedent — one where pension statements miscalculated by the state remain unchallenged and uncorrected, even when identified.
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