A Blunder in Pension Equalization: Löwenstein Owes 19,000 Euros
In the 90s, a pension equalization was performed for Uwe Löwenstein through the state-mandated pension insurance system. Per the ruling, his pension amount should have been reduced due to this equalization, but unfortunately, the authorities overlooked this during Löwenstein's pension application in 2013.
"Wow, I can't believe it! I'm supposed to foot the bill for their mistake!" exclaims Löwenstein.
The Forgotten Pension Equalization
The backstory: The pension equalization was executed after Löwenstein's divorce from his first wife, Sonja (now 70), in 1991. This equalization meant he should have had a smaller pension, but due to the oversight, Löwenstein was receiving close to 1,500 euros per month up until now.
The pensioner had submitted all necessary documents, including a divorce certificate, a decade prior to his pension application. Despite his submission, the authorities somehow missed this crucial piece of information.
A Modest Existence
"My income barely covers the bills, I don't own a house, car, or even a discount-store TV," Löwenstein confides. He and his second wife, Ora (also 70), shared a rented, two-room apartment measuring 46 square meters.
Löwenstein suspects that the recent death of his ex-wife prompted the authorities to review his pension assessment, uncovering the mistake. The "malus" in his divorce settlement had not been incorporated, leading him to owe an "overpayment repayment" of around 19,000 euros.
Not an Isolated Incident
"This happens more often than you'd think," says Katharina Lorenz (52), the Head of the Social Policy Department at the German Social Association's Lower Saxony branch.
Pension documentations can be vast, containing up to 40 pages. "Laypeople like Löwenstein often struggle to understand such complex documents," Lorenz adds. In her opinion, this oversight constitutes "gross negligence" on the pension insurance company's part.
"It's not fair," she says, advocating for Löwenstein to appeal and seek legal counsel. At this stage, Löwenstein is financially strapped and unlikely to secure a loan from the bank at his age of 75.
Overlooked Assets in Divorce Settlements
Although specific cases of pension overpayments due to oversight in pension equalizations in divorce settlements are lacking in sources, the importance of pension inclusion in divorce proceedings is prominent. Proper financial planning and disclosure during divorce can prevent significant financial disadvantages for one spouse, especially vulnerable groups like women with smaller pensions[2].
To avoid such issues, financial planners and divorce attorneys should engage in open and comprehensive discussions concerning pensions during settlement processes, protecting both parties' financial futures.
Sources:
Enrichment Data: [2] Learn about the attention paid to pension plans during divorce proceedings and the significance of addressing potential fallouts for underrepresented groups, such as women with smaller pensions, particularly in countries like Germany.
