Notable court ruling: Woman ordered to return 42,000 euros of aid funds
A woman in Germany is required to repay more than 42,000 euros after receiving citizen benefits for five years while also receiving a Russian pension, in a landmark ruling with implications for all foreign pension beneficiaries.
A woman moved from Russia to Germany in 2004 and applied for citizen income support. For five years, the employment center paid her allowances, including contributions to health insurance and long-term care. Payments continued until a third party informed the authorities that she had been receiving a Russian pension since she turned fifty.
After being asked to submit documents, the woman provided the documents related to her pension, but the employment center canceled all benefits and demanded the full repayment – a total of €42,155.88. She appealed the decision to the court, and after the case went through two lower courts, the Federal Social Court (BSG) upheld the employment center's demand for repayment in a landmark ruling (case number B 7/14 AS 10/21 R).
The court has decided that foreign pensions, such as Russian pensions, are treated like German pensions under social security law. Beneficiaries of these pensions are not eligible for citizen income, regardless of the amount of the pension or early retirement age. Failure to disclose the pension is considered gross negligence, even in the presence of language barriers.
The refund amount includes €34,307 as citizen aid plus €7,849 for health insurance and long-term care contributions. Social law experts warn that anyone receiving a foreign pension should check whether it is similar to the German pension to avoid financial obligations or legal penalties related to aid fraud.
For beneficiaries, this issue highlights the importance of transparency and accurate disclosure when applying for citizen income. Employment centers now provide a clear legal basis for excluding allowances if there is a foreign pension. As for women, years of legal battles have ended with a five-figure repayment bill.