Do you work in Germany while drawing a German partial pension? A health insurance reform changes the rules from 2027. If you want to adjust your situation from 1 January, your application must reach the Deutsche Rentenversicherung (German pension insurance) by 31 December 2026 at the latest.
Key points
- From 1 January 2027, entitlement to Krankengeld (statutory sickness benefit) ends as soon as the partial pension exceeds two thirds (66.66%) of the full pension.
- Cross-border workers who combine a job in Germany with a German partial pension are affected.
- Two options: reduce the partial pension to 66.66% maximum or switch to the full pension.
- For the change to take effect on 1 January 2027, the application must be received by 31 December 2026 at the latest.
What is it about?
In Germany, you can draw only part of your old-age pension (Teilrente) while continuing to work. This option had one advantage: as long as the pension was not drawn in full, the employee kept their entitlement to Krankengeld. This is the daily allowance paid by the German health insurance fund during extended sick leave, once the employer’s continued payment of wages has ended.
Many insured persons therefore chose to draw 99.99% of their pension. This way, they received almost all of their pension while remaining covered in case of illness.
What changes on 1 January 2027
The German act stabilising health insurance contribution rates (GKV-Beitragssatzstabilisierungsgesetz) puts an end to this practice. From 1 January 2027, entitlement to Krankengeld ends entirely as soon as the partial pension drawn exceeds two thirds (66.66%) of the full pension.
In practice, someone whose full pension would be €1,500 a month can draw a partial pension of no more than about €1,000 if they want to remain covered by Krankengeld. Above that, they will no longer be entitled to this allowance during sick leave.
Who is affected?
The measure applies to people who combine a job in Germany with a German partial pension and who are covered by German statutory health insurance for that job. This is the case in particular for cross-border workers who live in France and work in Germany. People who have taken a partial pension at a rate above 66.66% are directly affected.
What steps should you take?
The Deutsche Rentenversicherung provides two options. You can reduce your partial pension to a maximum of 66.66% to keep your Krankengeld. Or you can switch to the full pension, bearing in mind that you will then no longer be entitled to Krankengeld.
These changes can be requested at any time, for the future, online via the Deutsche Rentenversicherung services or by post. For the change to take effect on 1 January 2027, the application must be received by 31 December 2026 at the latest.
The right choice depends on each person’s situation: pension amount, state of health, planned length of employment, and any cover from other schemes. The Deutsche Rentenversicherung can advise you on your case, in particular during the international advice days held in border regions.
Please note: what counts is the date of receipt, not the date of sending.
Useful link: Beitragssatzstabilisierungsgesetz: Änderungen bei Bezug einer Teilrente (in German)
Source: Frontaliers Grand Est (in French). Questions about your situation? The legal advisers at Frontaliers Grand Est provide free information on pension rights in Germany: contact them.
