Abolition of Lump Sum Pension Options: Successful Implementation Confirmed - Ensured Full Payment of Pension: Steps Already Implemented by the Commission
In a significant shift for pensioners in Germany, the discontinuation of cash pension payments through Postbank's Payment Order for Settlement (ZzV) has been announced, effective by the end of 2025. This change will affect around 5600 pensioners who currently receive their benefits in this manner.
Since 2016, every consumer in the EU has the right to a basic bank account that provides all essential payment services. As a result, pensioners in Germany will need to transition to alternative payment methods to continue receiving their pensions.
Common options for pension disbursement in Germany typically include credit or debit account transfers, where pension payments are usually credited directly to the pensioner’s bank or savings account, and other payment services or banks offering pension payment acceptance. Pensioners can open a Girokonto (checking account) at any bank to receive payments electronically instead of cash withdrawal through Postbank.
Pensioners may also wish to inquire about new arrangements or partner banks providing direct deposit services, as some banks or postal payment services might offer pension payment acceptance. The Deutsche Rentenversicherung (German Pension Insurance) manages statutory pensions, and pensioners can get guidance regarding changes in payment methods directly from them.
It is worth noting that pensioners who fail to provide their bank details to the pension service by the end of the year will have their pension payments temporarily suspended to request the bank details. The form for communicating your bank details can be found on the Deutsche Post's pension service website.
Pensioners who receive their pension via Payment Order for Settlement do not need a bank account, not even at the Postbank. However, those who genuinely don't have a bank account will need to open one to continue receiving their pension. The remaining pensioners paid a monthly fee of around 9 euros for cash pension payments, but this fee will no longer apply once the transition to a bank account is made.
The Postbank has been handling the payment of statutory pensions on behalf of the statutory pension insurance. Around 1300 pensioners were exempt from paying a monthly fee for cash pension payments due to being over 75 years old or classified as hardship cases. The Post's pension service handles the payment of statutory pensions, and the number of pensioners receiving cash payments is decreasing rapidly as those affected are being contacted multiple times.
Any outstanding pension payments will be made up, ensuring that pensioners will not miss out on their benefits during the transition period. It is advisable that pensioners contact Postbank and Deutsche Rentenversicherung soon to understand the precise steps needed to ensure uninterrupted pension payments following the discontinuation of the cash payment service by the end of 2025.
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Pensioners in Germany will need to transition to alternative payment methods for their pensions, such as opening a Girokonto (checking account) at any bank to receive payments electronically. They can get guidance on changes in payment methods directly from the Deutsche Rentenversicherung (German Pension Insurance), who manage statutory pensions.
Pensioners may also wish to inquire about new arrangements or partner banks providing direct deposit services, as some banks or postal payment services might offer pension payment acceptance, thus eliminating the need for a Postbank account.
