A Riester allowance is only granted to those who are compulsory members of the statutory pension insurance scheme. RA J. Fiala expressly points this out. However, this is not the case for over 1 million assisting spouses. Experts estimate that 5% of all employment relationships are “worthy of review”. Numerous German citizens pay compulsory contributions to the statutory pension insurance scheme, but are not actually compulsory members! Only when the benefit case occurs do the authorities check. If it is then established for employment in the family business that the Riester allowances were granted “wrongly”, the state reclaims them. Hardly any tax consultant is aware of the fact that the status under social security law must be checked regularly. This also applies to insurance intermediaries. If the Riester contract was brokered on the false premise of an alleged subsidy, the citizen can regularly claim damages from the broker and the insurer. According to the legal regulation, the affected family member first bears the cost risk of the reversal. The insurance intermediaries are liable for a maximum of 10 years, after which the statute of limitations expires: If the status check takes place later, the cooperating family member will probably be left with the loss – the claim for repayment of the state subsidy, which is not subject to the statute of limitations. Further information for ep readers is also available via the monthly insurance hotline.
(Electropractor 3/2007, 157)
Our office in Munich
You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.
About the author
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala
On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.
Arrange your personal appointment with us.
You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.
(The first phone call is a free get-to-know-you conversation; without consulting. You will learn what we can do for you & what we need from you in terms of information, documents for a qualified consultation.)