Angelika Recently, the annual statement from the federal German pension insurance arrived at our house. More precisely, it was sent to our German contact address, because supposedly the aforementioned authority does not send such documents abroad. However, since a clever official at the German pension insurance wanted to know why Michael hasn't paid into the German pension fund for ten years now, Michael's mother sent us the forms to be filled out to San Francisco.

We promptly sent them back to Germany with a note that we now live and work in the USA, and therefore Michael pays mandatory contributions to the American pension insurance (called Social Security here). Soon, another letter arrived, this time even sent directly to San Francisco. The German authorities asked Michael to allow them to obtain information from the American Social Security Administration about Michael's already made contributions. Interestingly, the letter was written in both German and English. Michael initially grumbled a bit about the bureaucracy but eventually agreed to the data exchange between the two authorities.

Why do German authorities now want to know how much Michael has already paid into the federal pension fund in America? This is due to the German-American Social Security Agreement that came into effect in 1979. Since social security is one of the few mandatory insurances in the USA, an agreement could be reached. The agreement regulates how German and American contribution periods for pensions are combined. However, it does not go as far as to increase the future German pension with contributions made in America. But American insurance contributions can be used to shorten German contribution periods. In Germany, as is well known, one must pay contributions for at least five years to be eligible for a pension. But if, for example, Lieschen Müller, after working for four years at Karstadt in Munich, tries her luck in America, she does not have to give up her dream of a German pension. The period during which she pays into the American pension insurance is added to the four German years, and after one year she has completed her five years and is eligible.

Since Michael has already acquired both a German and an American pension entitlement, he will eventually receive a German and an American pension. If the population trend continues like this, however, this perhaps won't be happening, though, until he's 90, and it won't be much, but still. To receive American social security benfits, one must have paid into the system for at least 10 years on average.

Michael also benefits from the agreement, as the years contributing to the American system count towards the waiting periods in the German system, such as the 35 years required for the old-age pension for long-term insured individuals. However, Americans don't like it when someone receives an additional pension for which they haven't contributed to their own general Social Security fund. Therefore, they boldly reduce the American pension using the so-called "Windfall Elimination Provision" if someone also receives a German pension. "Windfall" roughly means "unexpected financial gain," a somewhat misleading term, if you ask me. By the way, the "Windfall Elimination Provision" applies to every American and has nothing to do with us being foreigners. For example, there are Americans who work for government agencies and contribute to their own pension funds (the U.S. Postal Service practiced this for years) or Americans who have acquired a German pension entitlement. In these situations, the red pen is also ruthlessly applied.

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• More topics you might be interested in:

  	Clean Windows
  	Insane Fees
  	San Francisco Views: Valencia Street
  	Gay Pride and the Pink Triangle
  	Japanese 1-dollar stores: Ichiban Kan and Daiso
  	Collection Agencies
  	Alviso Taco Truck
  	Garbage Chute