Attendance allowance is a cash benefit that can be claimed by people who do not take up or give up gainful employment in order to care for a severely disabled family member. Kindergeld, on the other hand, is a family allowance paid in Germany to people who, as a rule, have been working in the country for a certain period of time. In today's article, I will look at explaining the coordination of family benefits using the example of a client who downloaded care allowance in Poland and received Kindergeld benefit in full from Germany due to her husband's work in that country.
Is it compatible with the rules on the coordination of family benefits to collect full family allowance from Germany when at the same time you are collecting a care allowance paid as a kind of equivalent for working with a disabled person? You will find the answer in this article, you can read more about Kindergeld in the entry: Who is entitled to the German family benefit Kindergeld?
Case study
Mrs Krystyna approached my law firm some time ago for legal advice on attendance allowance. Her husband, and at the same time the father of the child, moved out of the country for work due to the need to support the family. The man has been working in Germany for 10 years.
The client has been receiving attendance allowance for her sick son in Poland for 11 years. As soon as her husband left, Ms Krystyna notified the relevant authorities - including the Municipal Family Assistance Centre. The institution stopped the payment of family benefits, but the attendance allowance continued to be paid.
Due to her husband's work in Germany, the couple also decided to apply for the German Kindergeld benefit. In her application, Ms Krystyna indicated that she was receiving attendance allowance for her son in Poland. Kindergeld was granted and, at the same time, for those 10 years she was receiving in Poland care allowance.
As the disabled son had reached the age of 16, a new certificate had to be issued and formalities had to be completed. This situation revealed irregularities that may have occurred between the Polish and German authorities. Mrs Krystyna approached my law firm with concerns about whether there had been a misunderstanding. And at the same time - whether she would have to bear the consequences. She was afraid that she would have to repay the benefit in 10 years' time, which would entail enormous financial problems.
All the above information has been anonymised for the purposes of this publication.
Attendance allowance and Kindergeld and EU coordination
The rules on the coordination of social security systems contain rules whereby persons taking up work in other EU Member States avoid the negative consequences of being subject to the social security system of different countries.
In the present situation, the provisions of Regulation (EC) No 83/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems apply. In accordance with Article 3 of this Union act, the Regulation applies to all legislation relating to the following branches of social security:
- sickness and disability benefits;
- maternity and equivalent paternity benefits, as well as old-age benefits;
- survivor pensions;
- benefits for accidents at work and occupational diseases;
- death benefits;
- unemployment benefits;
- pre-retirement and family benefits.
The essence of the care allowance under Polish and EU legislation
Pursuant to the provisions of the Act on the Social Insurance System, for a person collecting a nursing benefit, special care allowance or guardian's allowance, the contribution to the pension and disability insurance is paid by the head of the municipality, mayor or city president.
Attention!
The exception is the situation when the entitled person is subject to social insurance obligation under another title. On the basis of the Act, on the basis of separate regulations or is insured on the basis of Article 16(2)(4) of the Act of 20 December 1990 on social insurance for farmers.
Which state had priority for payment of benefits?
It is worth emphasising that, according to the position of the Ministry of Labour and Social Policy, if a person receives a nursing benefit on which social insurance contributions are paid by the municipality - they are treated as if they were working. This is affected by the fact that the contributions are paid. Thus, if one of the child's parents works in Germany and the other collects a care allowance in Poland on which social insurance contributions are paid, and the child is in the care of the parent in Poland, then Polish legislation will have priority for the payment of all family benefits. On the other hand, the institution of the other state (in this case, Germany), should grant the so-called differential supplement. That is, the difference between the amount of the benefit received in Poland and the amount of the benefit in the country where the other parent is gainfully employed.
Attendance allowance and Kindergeld - summary
From the facts cited, it is difficult to explain why my client was receiving Kindergeld in full. Receiving care allowance in her case should be treated as working. As the disabled son was in the client's care in Poland, all family benefits should have been granted in the first instance by Poland. Provided, of course, that insurance contributions are paid on this benefit in our country.
If you now apply for benefits for the new benefit period, you will have to send the decision to Germany. The Familienkasse has the right to check retrospectively whether the benefit is justified. Unfortunately, if it finds that there is no basis for payment, it has the option of revoking previous decisions. If this is the case, the facts should be reviewed again with a view to an appeal and a complaint to the Finanzamt Leipzig.
