Does disability insurance pay on top of the state reduced earning capacity pension?
In short
Yes, private disability insurance (BU) pays on top of the state reduced earning capacity pension (Erwerbsminderungsrente), both in full. The BU pension is not extra income under section 96a SGB VI, which counts only earnings and certain social benefits. But the state pension averaged about EUR 1,041 in 2024 and is often not paid at all.
What the state pension pays and what a BU costs that closes the gap on its own.
Example
Typical range
Reduced earning capacity pension, new pensions 2024, average
about EUR 1,041 a month
BU, age 30, office job, EUR 1,500 benefit
about EUR 70 a month
BU, age 30, manual trade, EUR 1,500 benefit
often EUR 100 or more above the office rate
Incapacity for work insurance, age 30, office, EUR 1,000 benefit
from about EUR 31 to 39 a month
As of October 2026.
Pension figure from Deutsche Rentenversicherung, premiums from published tariff examples,
legal provisions checked.
The target of 70 to 80 percent of net income is an indicative value from our quoting practice.
Your premium depends on age, job and health; we obtain the exact quote.
Worked example
Electronics technician, 45, back condition
He can no longer work on ladders and building sites, but light work would be possible for six hours. Later his condition gets worse.
Phase 1: occupationally disabled, not reduced earning capacity
BU EUR 1,800, state EUR 0
Phase 2: able to work under three hours a day
BU EUR 1,800 plus full state pension
Offsetting of the BU against the state pension
none
In the first phase the BU carries him alone. Only in the second phase do both pensions flow side by side, in full.
Two pensions, two contracts, no offsetting
The reduced earning capacity pension comes from the German statutory pension insurance (Deutsche Rentenversicherung), the BU pension from your private contract. Each has its own conditions and pays independently. The industry's model terms for disability insurance contain no clause deducting a state pension.
The pension fund does not reduce its payment either. Under section 96a SGB VI, a reduced earning capacity pension is cut only if your extra income (Hinzuverdienst) exceeds a limit. Extra income means wages, self employed income, comparable income and certain social benefits such as Krankengeld. A private BU pension is none of these.
Why you cannot count on getting both
The BU asks whether you can no longer do your last job to at least 50 percent. The state asks whether you can still do any job on the general labour market for six or three hours a day. An office clerk with a severe back condition can be occupationally disabled and still able to sit at a reception desk for six hours.
In that common case, only the BU pays. So in practice the question of receiving both is often the second question. The first is whether you will get a state pension at all.
Situation
Private BU
State pension
Own job no longer 50 percent possible, other work six hours possible
pays
does not pay
Other work only three to under six hours possible
pays
half pension, if contribution periods are met
No work for more than three hours
pays
full pension, if contribution periods are met
Contribution periods not met, e.g. after self employment or years abroad
pays
does not pay
The conditions of the state pension
For the state pension you need at least three years of compulsory contributions in the five years before the illness and the general qualifying period of five years. People who were self employed, worked abroad or did not work for a long time often fall through here, which is common among people who moved to Germany later in life.
The BU has no such contribution periods. It pays if the disability began while you were insured and you answered the application questions honestly.
How high your BU pension should be
Because the state pension is uncertain, size your BU pension so that you can manage without it. A common target is 70 to 80 percent of your net income. If the state pays later on top, that is a cushion, not a gap.
Tax comes off both pensions. If you are a compulsorily insured pensioner (KVdR), health contributions are due only on the state pension; a privately arranged BU pension stays contribution free (section 237 SGB V). A BU pension through your employer counts as an occupational benefit (Versorgungsbezug, section 229 SGB V) and is charged, and so is any BU pension if you are voluntarily insured. A private BU pension is taxed only on its income share (Ertragsanteil), the state pension on its taxable share. So plan with net amounts.
When the combination is not enough
If you agreed a BU pension of EUR 800 for a net income of EUR 2,400, a state pension only helps if you actually get it. Many contracts date from the start of a career and were never increased.
Check whether your contract has a guaranteed increase option (Nachversicherungsgarantie). It lets you raise the pension after marriage, a birth or a pay rise without new health questions, as long as you are not yet disabled.
Step by step
Claim from your BU insurer as soon as you can no longer do your job.
Have the pension fund check separately whether a state pension is possible.
Request your insurance record (Versicherungsverlauf) and check the three years of contributions.
Review both decisions separately, a no from the pension fund does not bind the BU.
Plan with net figures: tax on both pensions, health insurance depending on your status.
Checklist
BU pension alone covers 70 to 80 percent of net income
No clause offsetting state pensions in the contract
Guaranteed increase option and its deadlines noted
State pension record without gaps
BU benefits run until your retirement age
Common mistakes
Choosing too low a BU pension because you count on the state
Giving up the BU claim after a no from the pension fund
Assuming the private pension counts as extra income and cuts the state one
Letting BU benefits end before your retirement pension starts
Questions and answers
Frequently asked
Is the BU pension offset against the state pension?
No.
Under section 96a SGB VI, only wages, self employed income,
comparable income and certain social benefits count as extra income.
A private BU pension is none of these.
Does the BU insurer reduce payments if the state pays?
Not under the model terms.
Still check your own terms for unusual clauses, for example in contracts through an employer.
Must I apply for the state pension to get BU payments?
No.
The BU does not require a state pension application.
Your health insurer may push for a rehab application, which is a separate matter.
Can I still work while receiving both pensions?
The state pension has an extra income limit.
With the BU, new work may end payments if your contract allows referral to a comparable job.
Ask both beforehand.
How are the two pensions taxed?
The private BU pension on its income share, which depends on the remaining term,
the state pension on the taxable share for the year it starts.
What if I only get a partial state pension?
Then the state pays about half of the full pension.
The BU pays the agreed amount regardless, if you are occupationally disabled.
