Potential disruption in pension payments for some retirees starting from October, due to the IBAN rule changes.
The German Pension Insurance (DRV) has confirmed that pension transfers will not be affected by the upcoming IBAN-name check rule, aimed at preventing fraud in banking transfers[1]. This reassurance comes as rumors circulate about potential disruptions to pension payouts due to the IBAN change.
Starting October 2025, European banks will be required to perform an additional name check during transfers. However, the DRV has decided to waive the IBAN-name check specifically for pension payments, ensuring that pensioners continue receiving their money without delays caused by name mismatches in banking transfers[1].
This means that even though financial institutions or transfer protocols might introduce stricter name verification alongside IBAN checks from October 2025, the DRV's exemption ensures pension payouts remain unaffected. The exemption is integral to the process, as no other sources have indicated any change or disruption to pension payments related to the new name check starting October 2025.
It is important to note that the IBAN-name check is intended to prevent fraud in general transfers, not specifically for pension payouts. Misinformation about pension payouts is currently circulating online, but the pension insurance has not confirmed that pension payouts are threatened by the IBAN change.
One such misconception is the claim that pensions won't be paid if life certification is missing. However, this is not accurate, and pension payouts will continue as before, even with minor discrepancies in the name.
The German Press Agency (dpa) reported on the confusion between the two different processes (IBAN check and pension transfers), highlighting the need for clarity in these matters. As such, the accuracy of online claims about the impact of the IBAN change on pension payouts should continue to be verified before believing them.
In summary, pension payouts will continue as usual without new compliance burdens or interruptions, thanks to the DRV's exemption of pension payments from the upcoming IBAN-name check rule.
[1] German Pension Insurance (DRV) statement on IBAN-name check and pension transfers, [Date].
