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D E PA R TM E N T O F C O M M E R C E A N D L A B O R
BUREAU
OF
LABOR
CHAS. P. NEILL, Commissioner
LAW
R E L A T IN G
O F
S A L A R IE D
IN
T O
IN S U R A N C E
EM PLOYEES
GERM AN Y
BU LLETIN O F TH E U N ITED
STA TE S BU REAU OF L A B O R
WHOLE NUMBER 107
WORKMEN’ S INSURANCE AND COMPENSATION SERIES
No. 4
SEPTEMBER 3, 1912
WASHINGTON
GOVERNMENT PRINTING OFFICE
1913
CO N TEN TS.
Page.
Introduction......................................................................................................... 5-10
Section One.—Scope of the insurance:
I. Compulsory insurance................................................................... 10-13
13
II. Voluntary insurance.......................................................................
III. Salary classes................................................................................ 13,14
Section Two.—Object of the insurance:
I. General provisions........................................................................
14
II. Retirement pension...........................................................................14,15
III. Survivors’ pensions........................................................................ 15,16
IV. Medical treatment........................................................................... 16,17
V. Benefits in kind............................................................................
17
VI. Special regulations for persons remaining in a foreign country... 17
VII. Waiting term................................................................................. 17,18
VIII. Lapsing of the claim.....................................................................
18
IX . Periods which shall be included in the computation..................
18
X . Computation of the benefits of the insurance—
1. Retirement pension.............................................................
19
2. Survivors’ pensions.............................................................
19
3. Rounding off the amounts...................................................
19
X I. Return of contributions—
1. In case of death of insured female salaried persons..........
19
2. Upon leaving an employment subject to insurance............
20
X II. Annuities......................................................................................
20
X III. Stopping the benefits......................................................................
20
XIV. Withdrawal of the benefits.............................................................. 20,21
XV. Suspension of the pension............................................................ 21,22
XVI. Special powers of the Imperial Insurance Institute....................
22
XVII. Relation to other claims............................................................... 22,23
XVIII. Special provisions......................................................................... 23,24
Section Three.—Carrier of the insurance:
I. Designation...................................................................................
24
II. Legal status.....................................................................................
24
III. Official bodies................................................................................. 24-32
1. The directorate.................................................................... 24,25
2. The administrative council................................................. 25-27
3. The pension committees—
Scope of their activities................................................ 27,28
Their establishment......................................................
28
The presiding officer.....................................................
28
Tl*,e associates............................................................... 28-30
Subordinate officers......................................................
30
Expenditures................................................................
30
4. The district agents.................................................................30-32
3
4
CONTENTS.
Page.
Section Eour.—The arbitration courts and the superior arbitration court:
32
I. General provisions........................................................................
II. The arbitration courts—
1. Their establishment.............................................................
32
2. Their composition................................................................
32
III. The superior arbitration court—
1. Its establishment.................................................................
33
2. Its composition....................................................................
33
IV. Supervision. Costs....................................................................... 33,34
Section Five.—Providing lor the benefits:
I. Raising the means—
1. General provisions...............................................................
34
2. Amount of the contributions.............: ...................... .........
34
3. Payment of the contributions through the employers........ 35-38
4. Payment of the contributions through the insured persons..
38
5. Invalid contributions.......................................................... 38,39
6. Contributions paid by mistake............................................
39
7. Controversies concerning contributions............................... 39,40
8. Supervision..........................................................................
40
II. Assets............................................................................................... 40-42
Section Six.—Procedure:
I. Procedure before the pension committee—
1» Submission of claims...........................................................
42
2. Disqualification and rejection of members of the pension
committee............................................................................ 42,43
3. Determination of the benefits.............................................. 43-47
II. Procedure before the arbitration court............................................ 47-49
III. Procedure before the superior arbitration court............................. 49,50
IV. Reopening of the procedure—
1. Grounds for contest.............................................................. 50,51
51
2. Competence.........................................................................
3. Course of the procedure....................................................... 51,52
4. Final provision....................................................................
52
V. Contesting final decisions...............................................................
52
Y I. Costs of the procedure....................................................................
52
Section Seven.—Payment of the benefits:
I. Payment through the Post Office Department..............................52,53
II. Settling of the post-office accounts................................................
53
Section Eight.—Other provisions:
I. Authorities.....................................................................................
53
II. Legal assistance................................................................................ 53,54
III. Timelimits...................................................................................... 54,55
IV. Notifications....................................................................................
55
Y. Fees and stamp taxes.....................................................................
56
VI. Prohibitions and penalties........................................................... 56-59
VII. Foreign legislation.........................................................................
59
Section Nine.—Final and transitory provisions:
I. Cost of the first establishment.........................................................
60
II. Private pension institutions—
1. Supplementary funds.......................................................... 60,61
2. Substitute funds.................................................................. 61-64
III. Public legal pension funds.............................................................. 64,65
IV. Insurance contracts with life insurance companies........................ 65,66
V. Voluntary insurance.......................................................................
66
VI. Reduction of the waiting term....................................................... 66,67
VII. Date of legal effect...............................................................
67
B U L L E T IN
U N IT E D
STATES
WHOLE NUMBER 107.
O F THE
BU REAU
O F
W A SH IN G T O N , D. C .
LA B O R .
SEPTEMBER 3, 1912.
IM PE R IA L L A W OF DECEM BER 2 0 , 1 9 1 1 , RELATING TO
INSURANCE OF SALARIED EM PLOYEES.1
INTRODUCTION.
INTRODUCTION AND TRANSLATION BY HENRY J . HARRIS, PH . D.
PURPOSE OF THE INSURANCE.
Until recently social insurance legislation has been principally di
rected toward making provision for wage earners as contrasted with
persons in receipt o f salaries. The method o f payment for the serv
ices rendered is, o f course, but one manner o f distinguishing those
whose services consist principally o f physical labor or manual effort
from those whose services are principally o f an administrative or
supervisory character or consist largely o f mental effort. The mem
bers o f the first group are usually designated as workmen, laborers,
etc.; those o f the second as officials, clerks, etc. It is suggestive o f the
needs o f the two groups that the workmen’s insurance system o f Ger
many first provided sickness and accident relief; then, after an in
terval, the invalidity and old-age relief was added; and, finally, after
another interval, a system o f relief for widows and orphans was pro
vided. In the case o f the salaried employees’ insurance the system
from the start consists o f invalidity and old-age relief, together with
provision for widows and orphans.
HISTORY OF THE INSURANCE.
The first country to adopt a separate and comprehensive system o f
invalidity and old-age insurance for salaried employees was Austria,
whose law o f December 16, 1906,2 came into force on January 1,
1909. A description o f this system w ill be found in the Twentyfourth Annual Report o f the Commissioner o f Labor (Y ol. I, pp.
1 Versicherungsgesetz fur Angestellte. Vom 20. Dezember 1911. Reichsgesetzblatt, 28.
Dezember 1911, Seite 989-1061.
2A translation of this law is given in the Bulletin of the International Labor Office
(English edition), Vol. I (1906), pp. 398 ff.
5
6
BU LLETIN OF THE BUREAU OF LABOR.
395-413. )* The adoption o f this law proved a stimulus to the move
ment for a similar law in Germany, and it is probable that the in
clusion o f salaried employees in the 1910 old-age pension law o f
France was also o f some influence. The old-age pension laws o f
Great Britain and certain other countries, where a noncontributory
system is used, make no distinction between workmen and salaried
employees, pension rights being based on residence and the absence o f
other income.
In Germany the first form al demand for a system o f invalidity
and old-age insurance for salaried employees came from an associa
tion o f commercial employees in the Rhine district in 1895.1
2 Other
groups o f employees formulated similar demands in 1898 and 1899,
and in 1901 a number o f these associations formed a federation to
promote the movement. This organization grew rapidly, and in a
few years the membership o f the societies affiliated with it exceeded
700,000. From the titles o f these societies it is evident that the greater
number o f the members were employed as clerks, salesmen, etc., in
commercial establishments; technical experts, draftsmen, foremen,
etc., in manufacturing plants; clerks, bookkeepers, accountants, etc.,
in offices; teachers, musicians, etc., in institutions o f various kinds,
and the like. Women employees were also largely represented.
Approxim ately three-fourths o f these employees were already in
cluded in the workmen’s insurance system, but the petitions submitted
by them all base the request for additional benefits on the ground
that the relief provided by the workmen’s system was too small for
their needs.
As in other countries, very little accurate inform ation was available
in Germany as to the economic condition o f the salaried employee,
and in October, 1903, the federation made an investigation o f the
earnings, expenditures, age, size o f fam ily, occupation, etc., o f their
members, particular emphasis being placed on the extent to which
provision was made for old age, sickness, disability, and relief for
widows and orphans. The work o f com piling the information col
lected by the societies was done by the Imperial Statistical Office, and
the results were published in a memorial which was transmitted to
the Parliament in March, 1907.3
The federated societies had submitted a tentative outline o f the
benefits they desired the proposed insurance to provide; in general,
the proposed scheme o f benefits closely follow ed that provided by the
existing laws for Government officials. On the basis o f the returns
1 Reprinted as Workmen's Insurance in Austria, by Henry J. Harris, Washington, 1912.
2 See article by Alfred Manes, Der Gesetzentwurf betreffend die Angestelltenversicherung, in Annalen fiir Soziale Politik und Gesetzgebung, Vol. I, pp. 232 ff.
8 Denkschrift fiber die wirtschaftliche Lage der Privatangestellten, bearbeitet auf
Grand der im Oktober, 1903, angestellten Erhebungen der Privatbeamtenverb&nde im
Reichsamt des Innem, Berlin, 1907. (Drucksachen des Reichstags No. 226, 12. Legislaturperiode, I. Session, 1907.)
GERMAN INSURANCE LA W FOR SALARIED EMPLOYEES.
7
o f the investigation o f 1903, the memorial showed that the proposed
scheme o f benefits would require about 19 per cent o f the earnings o f
the insured persons. The high cost o f the proposed benefits made
the adoption o f that plan inadvisable, and practically all the politi
cal parties in the Parliament united in urging the administration
to draft a modified scheme o f benefits which could be provided at a
materially lower expense. In March, 1908, a second m em orial1 was
transmitted to the Parliament, outlining a system o f benefits which
would cost about 8 per cent o f the earnings o f the insured. The 1903
investigation had shown that there were in operation a number o f
voluntary insurance organizations o f salaried employees which fur
nished benefits similar to those under discussion, and that the cost o f
these benefits was about 8 per cent.23
* The 1908 memorial outlined a
system o f benefits consisting o f occupational invalidity pensions, o f
old-age pensions beginning at 65, o f pensions for widows and orphans,
together with some minor benefits, which could be provided at a cost
o f about 8 per cent o f the earnings o f the insured. The schedule o f
benefits outlined met with general acceptance, and after allowing
time for discussion the administration introduced the first draft o f
a law in January, 1911, follow ed by a second draft in May, and on
December 20, 1911, the bill became a law. As passed the bill con
tained substantially the same benefits as those given in the 1908
memorial.
GENERAL FEATURES OF THE LAW.
This law is the second social insurance act passed in Germany in
the year 1911. The Workmen’s Insurance Code ( ReicTis-Versicher u n g s o r d n u n g ) o f July 19, 1911,8 is a codification o f practically all
the workmen’s insurance legislation o f the Empire, and covers sick
ness, accident, invalidity, and widows’ and orphans’ relief. This
code is the result o f efforts to consolidate the workmen’s insurance
legislation into a uniform system. Independent o f this system, and
serving as a supplement to it, the insurance system for salaried em
ployees w ill make provision for some employees who are not covered
by the former, but about three-fourths o f the persons insured are
already covered by some phase o f the workmen’s insurance system.
The official report accompanying the text o f the salaried employees’
bill estimates that about 2,000,000 persons w ill be covered by the
law, and o f these about 420,000 are women.
The cost o f the system is to be met by a system o f contributions
or dues, half o f which w ill be paid by the employee and half by the
1 Denkschrift, betreffend die Pensions- und Hinterbliebenen versicherung der Privatangestellten, bearbeitet im Reichsamt des Innem, Berlin, 1908. (Druck'sachen des
Reichstags No. 986, 12 Legislaturperiode, I Session, 1907-9.)
3Entwurf eines Versicherungsgesetzes ftir Angestellte nebst Begriindung. Amtliche
Ausgabe. Berlin, 1911, pp. 59 ff.
8Translated as Workmen’s Insurance Code of July 19, 1911, by Henry J. Harris, in
Bulletin 96 of the U. S. Bureau of Labor.
8
BU LLETIN OF TH E BUREAU OF LABOR.
employer. The Government makes no contribution toward the in
surance. The insured persons are divided into nine salary classes
and in each o f these classes the contributions or dues are the same, no
distinction being made on account o f sex, size o f fam ily, age, or state
o f health.
The contributions fo r the insurance are to be deducted from the
employee’s salary at the usual time o f salary paym ent; the employer
adds his half at the same time. The employer must paste special
stamps o f the value o f the amount due on the employee’s insurance
card and must forward the sum collected within two weeks to the
insurance authorities. The insurance is, o f course, com pulsory; vol
untary insurance is permitted to only a limited extent.
The administration o f the system is to be in the hands o f a special
Im perial Insurance Institute, and under its direction a corps o f
officials w ill have charge o f the local offices necessary to transact the
business o f the insurance.
BENEFITS.
The law describes the persons insured in rather general terms as
those who are employed for compensation in directing or administra
tive positions or positions o f a clerical character and including per
sons employed on German vessels. I f the salary received by these
persons is in excess o f 5,000 marks ($1,190), they are not included.
Insurance for the persons described is compulsory and takes place
automatically through the requirement that the employer shall de
duct the specified contributions from the wages o f the insured.
As already stated, by far the great m ajority o f the insured per
sons—at least 75 per cent— are already covered by the workmen’s in
surance system, so that the application o f the present law w ill provide
the greater part o f the insured persons with two sets o f benefits.
On attaining the age o f 65 years the insured becomes entitled to
a retirement pension regardless o f his physical condition; a pension is
granted earlier in case o f disablement or invalidity which prevents
the insured from carrying on his occupation or prevents him from
earning at least one-half o f what a physically and mentally sound
person o f similar training and ability is able to earn. In case o f the
death o f the insured, his survivors—the widow and orphans—become
entitled to pensions.
To obtain the benefits o f the insurance, it is necessary for the in
sured to have paid contributions for a specified length o f time—the
so-called waiting term. In general this is 120 months, but is reduced
as regards the retirement pension for women. The benefits consist o f
retirement (including both old age and invalidity) pensions, pensions
to survivors (widow and orphans), medical treatment, return o f con
tributions, and annuities.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
9
The retirement pension is paid on the completion o f the sixty-fifth
year o f age or on the occurrence o f occupational disability. The yearly
amount o f this pension for men is one-fourth o f the sum o f the dues
paid in during the first 120 months, plus one-eighth o f the dues paid
after that period; for women, the pension for disability occurring
after the completion o f 60 months is one-fourth o f the dues paid in
for the first 60 months, and this amount remains fixed for the rest o f
the 120 months’ period, after which the pension is increased in the
same manner as for men. Thus in the case o f a man (in class E )
whose salary is from 1,500 to 2,000 marks ($357 to $476) the monthly
dues are 9.60 marks ($2.28); m ultiplying 9.60 marks by 120 months
and taking one-fourth o f the product gives the minimum annual pen
sion o f 288 marks ($68.54). In the great m ajority o f cases this pen
sion is, o f course, in addition to that received under the workmen’s
insurance system.
The pension for a widow is two-fifths o f the pension which the hus
band was receiving at the time o f his death, or would have received
had he been disabled. I f she remarries, the widow receives a settle
ment o f three times her annual pension. A disabled widower who had
been supported by his w ife receives a pension computed in the same
manner during the continuance o f his need.
Orphans under 18 years o f age receive on the death o f the father a
pension equal to one-fifth o f the widow’s pension; if the mother is
also dead, the pension is one-third o f the widow’s pension. An or
phan’s pension ceases on the completion o f the eighteenth year o f age;
if he or she marries before this time, it ceases on the date o f the
marriage. The total amount o f the pensions o f the widow and or
phans may not exceed the amount o f the retirement pension.
The benefit described as “ return o f contributions” is granted to
women insured under the law who marry after paying in contribu
tions for more than 60 months and cease to be em ployed; this bene
fit is also paid to her heirs if an insured woman dies after paying
contributions for the same period, provided that no claim for a pen
sion has ever been allowed on her account. The amount o f this
benefit is one-half o f the sum o f the contributions to her credit; in
other words, the actual amount paid in by the insured woman is re
turned. As a temporary measure, during the first 15 years after
the law comes into force, a similar benefit o f half the total contribu
tions paid is granted on the occurrence o f disability or on the death
o f an insured man or woman, provided that no valid claim to a pen
sion can be established; this benefit, however, may be claimed only
by a widow, a widower, or by children under 18 years o f age, and is
granted regardless o f the length o f time fo r which contributions
have been paid.
30
B U LLETIN OF TH E BUREAU OF LABOR.
Another benefit provided only for women is the “ annuity ” ( Leibrente), granted when an insured woman leaves an employment sub
ject to the insurance because o f marriage or for other reasons. The
claimant is allowed to fix the date on which the payment o f the
annuity is to begin, and, o f course, the amount o f the annuity in
creases the longer the date o f payment is postponed.
As part o f the benefits o f the insurance, the insured persons may
be granted such medical treatment as w ill prevent the occurrence o f
disability and the insurance authorities can even compel the insured
to submit to such treatment by withholding the pension. During the
stay o f the insured in a hospital or similar institution, a benefit called
“ house money ” must be granted to his dependents; this benefit is a
daily sum equal to 15 per cent o f the last monthly contribution paid
on his account. The house money, however, is not paid if the in
sured is entitled to other benefits under other laws.
The date when the law comes into effect w ill be announced in the
Reichs-Gesetzblatt and is expected to be early in 1913. The provi
sions relating to the organization o f the insurance went into effect on
the date o f the approval o f the act.
SECTION ONE.—SCOPE OF THE INSURANCE.
I. COMPULSORY INSURANCE.
A rticle 1.
1. Insurance is provided under the provisions of this law in case
of occupational invalidity ( B e ru fs u n fd h ig k e it) (art. 25) and of old age as well
as in favor of the survivors (H in te rb lie b e n e n ), for the following persons from
the completed sixteenth year of life:
1. Salaried persons (A n g e s te llte ) in directing positions, if the employment
is their principal occupation;
2. Establishment officials, foremen, and other salaried persons in a similar
advanced or higher position without regard to their previous educa
tion; salaried persons in offices in so far as they are not employed
in inferior services or services which are entirely of a mechanical
nature; in case of all of these persons, however, only if this employ
ment is their principal occupation;
3. Clerks in mercantile establishments and in pharmacies;
4. Members of the stage and of orchestras without regard to the artistic
value of their services;
5. Teachers and tutors;
6. The following persons who belong to the crews of German seagoing
vessels and to the crews of vessels engaged in inland navigation:
Captains, officers of the deck service and engineer service, pursers and
assistant pursers (V e r w a lte r im d V e rw a ltu n g s a s s is te n te n ) as well as
salaried persons in similar advanced or higher positions without re
gard to their previous education; in case of all of these persons, how
ever, only if the employment is their principal occupation.
Par. 2. Every vessel shall be considered as a German seagoing vessel, which
sails under the German flag and is exclusively or principally used for maritime
navigation.
P a r . 3. The prerequisite of the insurance in the case of all these persons is
that they shall not be incapacitated for their occupation (b e ru fs u n fd h ig )
(art. 25), that they shall be employed for compensation (E n tg e lt) (art. 2) as
salaried persons, that their annual earnings do not exceed 5,000 marks [$1,190],
and that on entering the employment subject to the insurance, they have not
yet completed the sixtieth year of age.
P a r a g r a ph
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES,
11
A rticle 2.
P a r a g r a p h 1. In the meaning of this law compensation includes in addition
to salary or wage, such payments as shares in profits, payments in kind and
other payments w'hich the insured person receives, even if only as a matter
o f custom, instead o f salary or wage, or in addition thereto, from the em
ployer or from third persons.
P a r . 2. The value o f the payments in kind shall be computed on the basis
o f local prices, which shall be determined by the lower administrative authori
ties.
A rticle 3.
The insurance also includes Germans who are employed in a foreign country
at an official representation o f the Empire or o f a Federal State or are em
ployed by the heads or members o f the same.
A rticle 4.
The Federal Council may as a general measure, extend the insurance obli
gation to such persons who carry on an activity similar to those named in
article 1 for their own account without employing salaried persons in their
establishment.
A rticle 5.
The Federal Council may specify to what extent the German employees of
foreign States, and such persons who are not subject to German jurisdiction,
must fulfill the obligations o f the employer.
A rticle 6.
The employment o f one consort [i. e., husband or wife] by the other does not
establish an obligation to insure.
A rticle 7.
An employment for which only free maintenance is granted as compensation,
is exempt from the insurance.
A rticle 8.
The Federal Council shall specify to what extent temporary service shall be
exempt from the insurance.
A rticle 9.
P aragraph 1. Those persons shall be exempt from insurance who are em
ployed in establishments or in the service of the Empire, o f a Federal State,
o f a union of communes, o f a commune or of a carrier o f the imperial in
surance for workmen or salaried persons, if there has been provided for them
a right to retirement pension and survivors’ pensions equal to not less than
the minimum amount according to the rates o f a salary class (art. 16) to be
determined by the Federal Council; in such case the average income of the
appropriate class o f officials shall be considered.
P a r . 2. T h e sam e shall be applicable to the clergym en o f religious societies
recognized a s public legal corporations a s w ell as to teachers and tutors in
public schools or institutions.
P a r . 3. Whether a right is to be considered as having been granted shall be
decided by the imperial chancellor in the case o f employees in establishments
or in the service of the Empire or in the service o f a carrier o f the imperial
insurance for workmen or salaried persons, if the carrier is supervised by the
Empire; in other cases the decision shall be made by the highest administrative
authority o f that Federal State in whose establishments or service the employ
ment takes place or in whose territory the union o f communes or the commune
is located or the carrier o f the imperial workmen’s insurance has its seat.
In the cases mentioned in paragraph 2, the decision shall be made by the
highest administrative authority o f that Federal State in whose territory the
corporation or the public school or institution has its seat.
12
BULLETIN OP THE BUREAU OP LABOR.
A
r t ic l e
10.
1. The following are exempt from the insurance:
1. Officials of the Empire, of the Federal States, of the unions of communes
and of communes, clergymen of religious societies recognized as public
legal corporations, teachers and tutors in public schools or institu
tions, but only so long as they are being educated for their occupation,
as well as officials provisionally employed in the service of the Empire
or State, and clergymen, provisionally employed, of religious societies
recognized as public legal corporations;
2. Salaried employees in railroad, postal and telegraph establishments of
the Empire or Federal States, who have in prospect their transfer
to the status of officials and thereby a right to an adequate invalidity
and survivors’ relief;
3. Military persons who carry on one of the activities designated in
article 1 during their service or during the preparation for a civil
^employment, to whom article 9 is applicable;
4. Persons who teach for compensation during the scientific training for
their future occupation;
5. Physicians, dental surgeons and veterinary surgeons engaged in their
professional activities.
P aragraph
Par. 2. The authorities who are competent according to article 9, paragraph
3, shall decide whether the conditions specified in Nos. 1 and 2 are present.
A
r t ic l e
11.
On their own application, persons in the following two groups shall be
exempt from the insurance, if they have been granted a retirement pension,
service money or similar benefits, the minimum anfount of which is at least
equal to the rates of salary class A and in addition have been granted a
right to survivors’ benefits (art. 9) ; these two groups are:
Those who have been granted such rights by the Empire, a Federal State,
a union of communes, a commune or an insurance carrier of the imperial
workmen’s insurance;
Those who have been granted such rights on the basis of a previous em
ployment as teacher or tutor in public schools or institutions.
A
r t ic l e
12 .
P a r a g r a p h 1. The pension committee (art. 98) which is competent for the
legal residence of the applicant shall decide on the application. If the appli
cant has no legal residence in Germany, then the pension committee of his
permanent place of abode shall decide. On appeal, the arbitration court
(art. 156) shall d^ide finally.
P a r . 2. The exemption takes effect from the receipt of the application.
A
r t ic l e
13 .
P a r a g r a p h 1. The pension committee shall revoke the exemption as soon as
the prerequisites therefor cease to exist. On appeal the arbitration court shall
decide finally.
Par. 2. In case of waiver of the exemption and in case of its final revocation,
the insurance obligation shall again come into force.
A r t i c l e 14.
Upon application of the employer, the Federal Council may specify to what
extent article 9, article 10, numbers 1 and 2, and articles 11 to 13 are applicable
to the following three classes of persons:
1. Employees engaged in establishments or in the service of other public
unions, or of corporations or of railroads for public traffic, or as
teachers and tutors in nonpublic schools and institutions, if in such
cases rights at least equal to those designated in article 9 have been
granted them or if they are being trained solely for their occupation.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
13
Persons to whom because of their previous employment by such unions
or corporations or railroads, schools or institutions, retirement pen
sion, service pension or similar benefits have been granted equal in
amount to not less than the rates of the salary class (art. 9) specified
by the Federal Council and in addition, a right to relief for their sur
vivors (art. 9) has been granted.
3. Officials and employees of the court, domanial, cameralistic, forestry, and
similar administrations of the State sovereigns, of the ducal regency
of Brunswick, of the administration of the entailed estates of the
princes of Hohenzollem and of the administrations of the mediatized
(s ta n d e s h e rrlic h ) nobility, as well as salaried employees in establish
ments, for whom a special invalidity and survivors’ benefit system has
already been provided by imperial or State regulations.
2.
II. VOLUNTARY INSURANCE.
A
b t ic l e
15 .
P a b a g b a p h 1. Whoever has ceased to be engaged in an employment subject
to the insurance and has paid dues for at least six contributory months because
of being subject to the insurance, may continue the insurance voluntarily. If
he has paid dues for 120 contributory months, then he may retain for himself
the right to the benefits acquired up to that time by the payment of an acknowl
edgement fee (art. 172, par. 2).
P a b . 2. Under the same conditions the insurance may be voluntarily continued
or kept alive even while the insured person remains in a foreign country.
III. SALARY CLASSES.
A
b t ic l e
16.
The following salary classes are constituted for the insured persons according
to the amounts of the annual earnings:
Class A : Up to (and including) 550 marks [$130.90].
Class B : Over 550 marks to 850 marks [over $130.90 to $202.30].
Class C : Over 850 marks to 1,150 marks [over $202.30 to $273.70].
Class D : Over 1,150 marks to 1,500 marks [over $273.70 to $357].
Class E : Over 1,500 marks to 2,000
marks[over $357 to $476].
Class F : Over 2,000 marks to 2,500
marks[over $476 to $595].
Class G: Over 2,500 marks to 3,000
marks[over $595 to $714].
Class H : Over 3,000 marks to 4,000
marks[over $714 to $952].
Class I : Over 4,000 marks to 5,000 marks [over $952 to $1,190].
A b t ic l e 17.
If the salary is paid in cash, but not in annual sums, then in order to deter
mine the appropriate salary class, the annual earnings shall be considered as
52 times the weekly amounts paid, or 12 times the monthly amounts or 4 times
the quarterly amounts. In computing shares in profits and similar receipts the
amount of which is not fixed, the basis shall be the amount of the last year for
which these payments have been received by the insured person. If, at the time
when the monthly contribution falls due, payments of this kind have not yet
been made to him from his present employment subject to the insurance, then
the salary paid in cash shall be used in computing the annual earnings. For
payments in kind, the value computed according to article 2, paragraph 2, shall
be used as a basis.
A b t i c l e 18.
Voluntary insurance is only permissible in a salary class not higher than
that which is equal or approaches nearest to the average of the last six com
pulsory contributions.
A
b t ic l e
19.
P a b a g b a p h 1. Previous to the completion of his 25th year of life, the insured
person may have himself transferred to insurance in a higher salary class than
that coriesponding to the amount of his annual earnings.
14
BULLETIN OP THE BUREAU OF LABOR.
Par. 2. An insured person who takes up an occupation subject to the insur
ance obligation at a lower rate of pay than that of his previous salary class,
may remain in his former salary class in case he has paid dues for at least six
contributory months in the higher salary class on the basis of the insurance
obligation.
Par. 3. The employer is, however, obligated to pay the higher contributions
only if he has agreed thereto.
SECTION TWO.—OBJECT OE THE INSURANCE.
I. GENERAL PROVISIONS.
A r tic le
20.
The object of the insurance is the provision of retirement pensions and
pensions to survivors.
A rticle 21.
A retirement pension is received by one who proves occupational disability
(B e r u fs u n fa M g k e it) (art. 25.) or that he has reached the legal age, as well
as fulfills the waiting term ( W a r t e z e it ) and that he has kept his claim in force.
A rticle 22.
Survivors’ pensions are granted, if the deceased at the time of his death
had fulfilled the waiting term for the retirement pension and had kept his
claim in force.
A rticle 23.
Back payments of retirement pensions and other pensions will not be made for
a longer time than one year, counting from the date of receipt of the applica
tion therefor.
A rticle 24.
Paragraph 1. Whoever purposely brings occupational disability on himself,
loses his claim to the retirement pension.
Par. 2. If the insured person has brought occupational disability on himself
by the commission of an act which according to the decision of a criminal
court is a crime or a willful misdemeanor, then the retirement pension may be
refused either in part or altogether. The contravention of mining regulations or
of article 93, paragraphs 2 and 3, and of articles 95 to 97 of the Navigation Code
is not considered as a misdemeanor in the meaning of the preceding sentence.
The retirement pension may be allowed, either in part or altogether, to the
dependents residing in the Empire, if the insured person had previous thereto
maintained them either in part or entirely from his earnings. In the meaning
of this provision, German protectorates are considered the same as the Empire.
Par. 3. The retirement pension may also be refused if on account of the
death, the absence or of any other cause connected with the person of the
applicant, no penal decision is rendered.
II. RETIREMENT PENSION.
A rticle 25.
Paragraph 1. A retirement pension is received by those insured persons
who have completed the age of 65 years or who are permanently incapacitated
for the exercise of their occupation because of physical disability or because of
the weakness of their physical and mental faculties. Occupational disability
is to be admitted, if the ability to work has diminished to less than the half
of that of a physically and mentally sound insured person of similar education
and equal knowledge and capacity.
Par. 2. A retirement pension is also received by those insured persons who
are not permanently disabled, but who have been disabled without interruption
for 26 weeks, for the further continuation of the occupational disability (sick
ness retirement pension).
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
A
r t ic l e
15
26.
Without affecting the provisions of article 28 and article 25, paragraph 2, the
retirement pension begins with the day on which the 65th year of age is com
pleted or on which the occupational disability begins. The date on which the
application for the retirement pension is received by the pension committee
is considered as the latter date, in case the beginning of the occupational disa
bility can not be determined.
A
r t ic l e
27.
Periods of time during which a retirement pension is received, but during
which no employment subject to the imperial workmen’s insurance is carried
on, are, however, to be considered as contributory periods for the keeping in
force of a claim to the benefits of the imperial workmen’s insurance system.
III.
SURVIVORS’ PENSIONS.
A
r t ic l e
28.
The widow receives a widow’s pension upon the death of her insured
husband.
A
r t ic l e
29.
Orphans’ pensions are received by his legitimate children under 18 years of
age upon the death of an insured father and by her fatherless children under
18 years of age upon the death of an insured woman. Children not legitimate
are also to be considered as fatherless.
A
r t ic l e
30.
P a r a g r a p h 1. Upon the death of the insured wife o f a disabled husband,
who from her earnings has defrayed the cost of living of her family either
wholly or in part, the legitimate children under 1 8 years of age receive orphans’
pensions and likewise the husband a widower’s pension as long as he is
indigent.
Par. 2. This also applies to the orphans’ pensions, if at the time of the death
o f the insured woman, the marriage had been dissolved.
A
r t ic l e
31.
P a r a g r a p h . 1 . The legitimate children under 1 8 years of age shall receive
orphans’ pensions upon the death of an insured wife whose husband has ab
sented himself without lawful reasons from the common household and has
neglected to perform his paternal duty of support.
Par. 2. This shall also apply, if at the time of the death of the insured
woman the marriage no longer existed and the husband had neglected to per
form his paternal duty of support.
A
r t ic l e
32.
Without affecting the provisions of article 23, the survivors’ pensions begin
on the day of the death of the one providing the support.
A
r t ic l e
33.
1. The benefits under the law are also granted if the insured
person has disappeared. He shall be considered as having disappeared if dur
ing one year no trustworthy news of him have been received and the circum
stances make his death probable.
P aragraph
Par. 2. The pension committee can demand from the survivors a solemn
affirmation that they have received no other than the reported news concerning
the existence of the missing person.
A
r t ic l e
34.
The pension committee in its discretion determines the date of the death of
the person who has disappeared. In the case of the survivors of a person lost
16
BULLETIN OF THE BUREAU OF LABOR.
at sea, the pension begins on the day of the sinking of the vessel, or if the vessel
has disappeared, then one-half of a month from the day up to which the last
news of the lost vessel reaches.
A rticle
35.
Survivors have no claim to the benefits of the insurance, if they have inten
tionally brought about the death of the insured person.
IV. MEDICAL TREATMENT.
A rticle
36.
P a r a g r a p h 1. To prevent an insured person from becoming disabled as a
consequence of sickness, the Imperial Insurance Institute (art. 96) may in
augurate a course of medical treatment ( H e ilv e r f a h r e n ), in so far as a carrier
of the imperial workmen’s insurance has not yet provided a course of medical
treatment.
Par. 2. The same applies, also, if it is to be expected that a course of medical
treatment will restore his earning capacity, to the beneficiary of a retirement
pension.
A rticle
37.
P a r a g r a p h 1. The Imperial Insurance Institute may in particular place the
sick person in a hospital or in an institution for convalescents.
Par. 2. If he is married and lives with his family, or if he has a household
of his own, or if he is a member of the household of his family, then his consent
is necessary therefor.
Par. 3. In the case of a minor, his consent is sufficient.
A rticle
38.
Paragraph 1. Dependents of the sick person, whose maintenance he has
wholly or principally defrayed out of the earnings of his labor, shall receive
house money ( H a u s g e ld ) during the medical treatment (art. 37). Its amount
per day shall be at least three-twentieths of the last monthly contribution which
was paid.
Par. 2. The house money ceases as long as and to the extent that wages or
salary is paid because of a legal claim.
P a r . 3. The payment of the retirement pension ( R u h e g e ld ) may be stopped
either wholly or partly for the duration of the medical treatment
A rticle 39.
If a sick person without legal or other appropriate reason withdraws from the
medical treatment (art. 36) and if the occupational disability would probably
have been prevented or removed through the medical treatment, then the
retirement pension may be either wholly or partly disallowed for the time
being, provided that the sick person has been notified of this result.
A rticle 40.
If the Imperial Insurance Institute inaugurates a course of medical treat
ment in the case of a sick person subject to the imperial workmen’s insurance,
then the Institute may discontinue the payment of the house money or of the
retirement pension during the continuance of cash benefits from the imperial
workmen’s insurance up to the amount of these cash benefits.
A rticle 41.
In case of controversy between the Imperial Insurance Institute and the
insured person in connection with the provisions of articles 37 to 40, the arbi
tration court shall decide finally.
A rticle
42.
Insurance in miners’ sick funds and in substitute funds shall be considered as
part of the imperial workmen’s insurance (arts. 495 and 503 of the Imperial
Workmen’s Insurance Code).
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES,
17
A rticle 43.
The Imperial Insurance Institute shall not have a claim for reimbursement
against the carriers of the imperial workmen’s insurance on account of the
inauguration of a course of medical treatment.
Y. BENEFITS IN KIND.
A
r t ic l e
44.
1. Recipients of a retirement or other pension may on their own
application be placed in an invalids’ or orphans’ home, or in a similar insti
tution. The cash benefits may be used either wholly or*partly for this purpose.
Par. 2. Homes for invalids and similar institutions shall be considered as hos
pitals, asylums and medical institutions in the meaning of article 11, paragraph
2, and article 23, paragraph 2, of the law on poor relief residence (Reichs-Gezetzblatt, 1908, p. 381).
P aragraph
Par. 3. The act of placing in an institution obligates the beneficiary for the
quarter of a year and if he does not object one month prior to the expiration
of this period, then each time for an additional quarter; the obligation consists
of the release of the cash benefits, as far as such are to be used.
A
r t ic l e
45.
Pa r a g r a p h 1. Chronic inebriates who have not been placed under a guardian
may be granted benefits which are either wholly or partly in kind. Upon the
application of an interested poor law union or of the officials of the residence
of the inebriate, such action must be taken. In the case of chronic inebriates
who have been placed under a guardian, benefits in kind may only be granted
with the latter’s consent. On the guardian’s application the granting of benefits
in kind becomes compulsory.
P a r . 2. The commune of the place of residence shall provide the benefits in
kind. The commune shall then have a claim upon the cash benefits equal to the
value of the payments in kind. The benefits in kind may also be granted by
placing the beneficiary in a sanatorium for inebriates, or with the consent of
the commune, through the services of an institution for the care of inebriates.
Par. 3. Any residue of the cash benefits shall be transferred to the consort
of the beneficiary, to his children or to his parents and in case such do not
exist, then to the commune, to be used for his benefit.
A rticle 46.
1. The pension committee shall issue the decree after a hearing of
the communal officials and of the beneficiary, and shall communicate it in writ
ing to them and to the Imperial Insurance Institute. The committee shall
decide in case of controversy between the commune and the beneficiary. On
appeal the arbitration court shall decide finally.
Par. 2. If the claim to the cash benefits has been transferred finally to
the commune, then the pension committee shall notify the post-office department.
Paragraph
VI. SPECIAL REGULATIONS FOR PERSONS REMAINING IN A FOREIGN
COUNTRY.
A rticle 47.
1. If beneficiaries give up their residence in the Empire, then
they may receive a settlement amounting to one-half of the capitalized value of
the benefits granted them. The tariff for the computation of the settlement
shall be determined by the Imperial Insurance Institute with the approval of
the Federal Council.
P a r . 2. For border territories the Federal Council may suspend this provision.
Paragraph
VII. WAITING TERM.
A rticle 48.
1. The duration of the waiting term is as follows:
1. In regard to the retirement pension, for insured males, 120 contributory
months, for insured females, 60 contributory months.
2. In regard to survivors’ pensions, 120 contributory months.
Paragraph
58 9 6 6°— 1 3 -------2
18
BU LLETIN OF THE BUREAU OF LABOR.
P a r . 2. If less than 60 contributory months on the basis of the insurance obli
gation are proved, then in regard to the retirement pension, the waiting term
for insured females is 90 contributory months, otherwise it is 150 contributory
months.
VIII. LAPSING OF THE CLAIM.
A rticle 49.
After the calendar year in which the first contributory month is contained
the claim lapses if within the next 10 calendar years following, less than 8
and after this time less than 4 contributory months during any one calendar
year are included or the payment of the acknowledgment fee {AnerTcervrmngsg e b u h r) (art. 172, par. 2) is not made.
A rticle 50.
P a r a g r a p h 1. The claim comes again into force, if within the calendar year
when the contributions are due or if within the calendar year following that
when the acknowledgment fee becomes due, the insured person pays up the
amounts in arrears.
P a r . 2. If a claim lapses during the waiting term, then upon application, the
Imperial Insurance Institute may grant a respite for the payment of the
arrears of contributions. The application must be filed before the expiration
of the time designated in paragraph 1. Obligatory contributions paid later,
may be used to cover arrears of contributions, for which a respite of payment
has been granted, in so far as they are not requisite according to article 49. By
using such contributions in this manner, the claim again comes into force.
IX. PERIODS WHICH SHALL BE INCLUDED IN THE COMPUTATION.
A rticle
51.
As contributory months in the meaning of articles 15 and 49, those calendar
months shall be included in which the insured person:
1. In fulfilling the duties of military service, has been drawn into service
either in times of peace, of mobilization or of war.
2. Had rendered voluntary military service in times of mobilization or
of war.
3. Has been unable to work for a time on account of sickness and can
submit proof that he was prevented from carrying on his occupation.
4. Was attending an educational institution recognized by the State, for
the purpose of technical education. The highest administrative au
thorities shall specify which educational institutions are to be con
sidered as recognized by the State in the meaning of this provision.
A rticle
52.
The period of convalescence shall be considered the same as that of sickness
(art. 51, No. 3). The same rule shall apply for the continuance of two months
in the case of inability to work which has been caused by pregnancy or a normal
confinement.
A rticle 53.
A sickness will not be included, which the insured person has purposely
brought on himself or has sustained in the commission of crime, determined as
such by the sentence of a criminal court, or has brought on himself by culpable
participation in rowdyism or disorderly conduct.
A rticle 54.
P a r a g r a p h 1. Military services which have been performed shall be proved by
the military papers.
P ar . 2. Periods of sickness shall be proved by certificates which are to be
made out by officials designated by the highest administrative authorities.
P a r . 3. For attendance at an educational institution recognized by the State*
a certificate of the director of the institution shall serve as proof.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
19
X. COMPUTATION OF THE BENEFITS OF THE INSURANCE.
1. BETIBEMENT PENSION.
A rticle 55.
The retirement pension (R u h e g e ld ) amounts—after the expiration of 120 con
tributory months—to one-fourth of the contributions paid during this time, and
one-eighth of the other contributions.
A rticle 56.
If in the case of an insured female, the condition against which insurance is
carried occurs after the expiration of 60 contributory months and before the
completion of the 120 contributory months, then the retirement pension shall
amount to one-fourth of the contributions paid in during the first 60 contribu
tory months.
2. SURVIVORS’ PENSIONS.
A
r t ic l e
57.
1. The widow’s pension or the widower’s pension amounts to
two-fifths of the retirement pension which the one providing the support re
ceived at the time of his death or would have received in case of occupational
disability.
Par. 2. Half orphans receive each one-fifth and orphans each one-third of the
amount of the widow’s pension.
P aragraph
A rticle 58.
P a r a g r a p h 1. The widow’s or widower’s pension, plus the orphan pensions
may not together exceed the amount of the retirement pension which the one
providing the support received at the time of his death or would have received
in case of occupational disability.
Par. 2. If the pensions add up to a higher amount, then they shall be reduced
in proportion to their size.
P a r . 3. When one survivor ceases to draw a pension, the pensions of the
others shall be increased to the highest permissible amount.
3.
ROUNDING OFF THE AMOUNTS.
A
r t ic l e
59.
Retirement and other pensions shall be paid in advance, in monthly install
ments, rounded off to sums of 5 pfennigs [1.2 cents].
XI. RETURN OF CONTRIBUTIONS.
1. IN CASE OF DEATH OF INSURED FEMALE SALARIED PERSONS.
A rticle 60.
P a r a g r a p h 1. If an insured female dies after the expiration of the waiting
term of 60 contributory months and before the receipt of a retirement pension
(R u h e g e ld ) or annuity (L e ib r m t e ) and if there is no claim to a survivor’s
pension, then upon demand one-half of the contributions paid in on behalf of
the insured person up to the time of her death shall be repaid as a settlement.
P a r . 2. In the order specified, the husband, the children, the father, the
mother, and the brothers and sisters are entitled to this claim, if at the time of
the death of the insured person, they were living in a common household with
her or were supported to a material extent from the earnings of her labor.
The claim lapses if it is not made effective within one year after the death of
the insured person.
A rticle 61.
Instead of the settlement, the Imperial Insurance Institute may grant the
beneficiary a life pension. The tariff for the conversion of the settlement into
a pension shall be determined by the Imperial Insurance Institute with the
approval of the Federal Council.
BULLETIN OF THE BUREAU OF LABOR.
20
2.
UPON LEAVING AN EMPLOYMENT SUBJECT TO INSURANCE.
A
r t ic l e
62.
If an insured female after the expiration of the waiting term for the retire
ment pension, leaves an employment subject to the insurance on account of mar
riage, then she shall have a claim to the return of one-half of the contributions
paid in on her account. The reimbursement then excludes any further claim
against the Imperial Insurance Institute.
XII. ANNUITIES.
A rticle
63.
Instead of the voluntary continuation of the insurance or of the maintenance
of the accrued rights (art. 15) or of the return of the contributions (art. 62),
an annuity will upon application be granted to insured females who leave an
employment subject to insurance; this annuity .shall be based on the value of
the accrued rights to the retirement pension and according to the age of the
applicant and shall be determined by the pension committee. Upon applica
tion of the beneficiary, the determination of the time of the beginning and of
the amount of the annuity may be reserved to a later date. The tariffs for the
computation of the value of the accrued rights and of the annuity shall be de
termined by the Imperial Insurance Institute with the approval of the Federal
Council.
XIII. STOPPING THE BENEFITS.
A rticle
64.
P a r a g r a p h 1. The pensions to widows and widowers cease on remarriage.
As a settlement the widow shall be granted three times the amount of her
annual pension. The claim lapses if it is not made effective within one year
after the remarriage.
Par. 2. The orphan’s pension ceases as soon as the orphan completes his
eighteenth year or marries.
A r t ic l e 6 5 .
1. The amounts shall be paid in full for the month in which
the death occurs and for the month in which the retirement or other pension
ceases, under reservation of article 58, paragraph 3.
Paragraph
Par. 2. If in addition to a part of a month of the retirement pension of an
insured person, there are also the pensions of the survivors, then they shall
have a claim to the retirement pension only.
A r t ic l e 6 6 .
If upon the death of the recipient, the retirement pension still due or the
pensions still due, have not been collected, then in the order specified, the
consort, the children, the father, the mother and the brothers and sisters are
entitled thereto, if they had lived in a common household with the recipient
at the time of his death or had been supported to a material extent by him
from the earnings of his labor.
A r t ic l e 6 7 .
If an insured person or a person entitled to the receipt of a widow’s or a
widower’s pension dies after he has filed his claim, then in the order specified
the consort, the children, the father, the mother and the brothers and sisters,
are entitled to continue the procedure and to receive the amounts due up to the
date of death, if they have lived in a common household with the beneficiary
at the time of his death or have been supported to a material extent by him
from the earnings of his labor.
XIV. WITHDRAWAL OF THE BENEFITS.
A r t ic l e 6 8 .
If the recipient of a retirement pension is no longer in a condition of occu
pational disability as defined in article 25, then the pension committee shall
withdraw from him the retirement pension.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
A r t ic l e
21
69.
Widowers’ pensions granted under the provisions of article 30, shall be with
drawn by the pension committee as soon as the indigence of the recipient ceases.
A
r t ic l e
70.
A decision which withdraws a retirement or other pension, shall become
effective with the expiration of the month in which it is delivered.
A
r t ic l e
71.
*
If a retirement pension is granted anew, then the previous payments of con
tributions shall be credited to the insured person.
A r t ic l e 7 2 .
If it is proved that an insured person who was treated as having disappeared,
is still living, then the further payment of the survivors’ pensions shall cease.
The Imperial Insurance Institute is not required to demand the repayment of
the amounts paid without a right thereto.
XY. SUSPENSION OF THE PENSION.
A r t ic l e
73.
The retirement pension shall be suspended if it is received at the same time
as—
1— pensions of the imperial workmen’s insurance,
2— salary, wages or other income from gainful occupation,
in so far as all receipts or the retirement pension together with one of the
receipts specified under 1 and 2 exceed that amount of annual earnings which
corresponds to the average of the 60 highest monthly contributions. In com
puting this average, the average of the highest and lowest annual earnings of
tiie salary class (art. 16) for which the contribution is paid is to be reckoned
for each monthly contribution. The amount of 450 marks [$107.10] is to be
reckoned as the average for salary class A.
A r t ic l e 7 4 .
Survivors’ pensions shall be suspended if they are received at the same time
as pensions of the imperial workmen’s insurance, and if both together exceed
six-tenths of the amount specified in article 73.
A r t ic l e 7 5 .
P a r a g r a p h 1. Retirement and other pensions shall be suspended as long as
the beneficiary is subjected to a penalty consisting of the loss of liberty for
more than one month, or is placed in a workhouse or in a reformatory.
P a r . 2. If he has dependents in Germany whom he has been supporting either
wholly or principally from the earnings of his labor, then the retirement pension
shall be turned over to them.
A rticle 76.
Retirement and other pensions shall be suspended as long as the beneficiary
regularly resides in a foreign country without the consent of the pension com
mittee. In case the pension continues to be paid, the beneficiary must send in
the medical certificates of his occupational disability which the Imperial In
surance Institute requires. The imperial chancellor shall specify the nature
and the form of the certificates.
A rticle
77.
The Federal Council is authorized to continue the payment of the retirement
pensions and other pensions for foreign border territory and for those States
whose legislation grants to Germans and their survivors a relief corresponding
to the provisions of this law.
22
BU LLETIN OF THE BUREAU OF LABOR,
A rticle 78.
In the meaning of articles 75 and 76 German protectorates shall be considered
as being the same as Germany.
XVI. SPECIAL POWERS OF THE IMPERIAL INSURANCE INSTITUTE.
A rticle 79.
If the Imperial Insurance Institute becomes convinced by a new examination
that the benefits were improperly disallowed, or withdrawn, or stopped on
account of suspension or from other reasons, or were determined too low, then
the Institute may direct the pension committee to make a new determination.
A rticle 80.
The Imperial Insurance Institute is not required to demand the repayment of
retirement pensions and other pensions which under the law, it had to pay
before a decision of legal force had been made.
XVII. RELATION TO OTHER CLAIMS.
A rticle 81.
This law does not affect the legal obligations of the communes and poor-law
unions regarding the support of indigent persons and other obligations on the
basis of law, ordinance, contract, or obligations arising out of testamentary
provisions to provide relief for the persons insured according to this law and
their survivors.
A rticle 82.
If a commune or a poor-law union in accordance with its legal obligations,
supports an indigent person for a period during which he had or still has a
claim under this law, then the commune or poor-law union may claim reimburse
ment, though only to the amount of this claim.
A rticle 83.
The reimbursement of funeral expenses which have been provided at the death
of an insured person may be claimed from the lump-sum settlement (art. 60)
unless the carrier of the imperial accident insurance or sickness insurance must
provide the repayment; in other cases, however, only the retirement pension or
other pensions may be attached.
A rticle 84.
In satisfaction of claims for reimbursement, arrears of retirement pension
or other pension payments may be attached to their full amount, but other pen
sion payments may be attached only to one-half of the payment.
A rticle 85.
The claim for reimbursement for relief must be filed with the competent
pension committee of the place of residence of the beneficiary. This committee
shall decide, though with reservation of the provisions of article 89.
A rticle 86.
A commune or a poor-law union may also claim reimbursement in a case where
an indigent person dies who had a claim to retirement or other pension, but who
has not filed his claim.
A rticle 87.
Those who are entitled to reimbursement may also call for the determination
of the benefits according to this law, and may also institute legal measures.
The expiration of time limits which have been exceeded without their fault shall
not be used against them; this however does not apply to time limits in pro
cedure in so far as those entitled to reimbursement are themselves carrying on
the case.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
23
A rticle 88.
The claim to reimbursement is not allowable if it is not brought forward
within six months after the relief ceases.
A rticle 89.
Controversies in regard to claims for reimbursement based on articles 82
to 88 shall be decided by the procedure for administrative disputes, or if such
does not exist, then by the supervisory authorities having jurisdiction over
those entitled to reimbursement. The decision of the latter may, within one
month after its delivery, be contested in the manner of an appeal according
to articles 20 and 21 of the Industrial Code ( G e w e rb eo rd n u n g ) .
A rticle 90.
The provisions of this section in regard to communes and poor-law unions
apply also to heads of establishments and to funds which, in place of the abovementioned obligors, must furnish, according to law, relief for indigent persons.
A rticle 91.
Paragraph 1. In so far as the persons insured according to this law and
their survivors may by law claim from a third person compensation for an
injury which has occurred to them because of occupational disability or because
of the death of the one supporting them, the claim shall be transferred to the
Imperial Insurance Institute up to the amount of those benefits which the
Institute had to provide as the result of the injury.
Par. 2. If a regular court has to pass on such claims, then it must accept
the decision which is rendered in the procedure under this law and which pre
scribes whether and to what extent the Imperial Insurance Institute is
obligated.
XVIII. SPECIAL PROVISIONS.
A r t ic l e
92.
Benefits which are granted under this law and the relief refunded through the
transfer of the claim, are not public poor-law relief.
A rticle 93.
Paragraph 1. Claims of beneficiaries may with legal validity, be transferred,
pledged and attached, only in the following cases:
1. On account of a loan which the beneficiary has received on the basis
of his claims in advance of the granting of the benefits, from the
employer or from the Imperial Insurance Institute;
2. On account of the claims specified in article 850, paragraph 4, of the
Code of Civil Procedure ( Z iv ilp ro z e s s o rd n u n g ).
3. On account of the claims of the communes and poor-law unions which
are entitled to reimbursement according to article 82, likewise em
ployers and insurance carriers of the imperial workmen’s insurance
system, miners’ associations and miners’ funds as well as other sub
stitute funds (art. 372) taking their place, if they are entitled to
reimbursement; the transfer, pledge or attachment is permissible only
to an amount equal to the legal claims for reimbursement;
4. On account of arrears of contributions, which have been due for not
more than three months.
Par. 2. In other cases also, with the approval of the pension committee and
as an exceptional measure the beneficiary may transfer to other parties his
claim either wholly or in part.
A rticle 94.
Claims to the retirement and other pensions may be computed only upon—
Demands for reimbursement for accident pensions and compensation re
ceived, in so far as the Imperial Insurance Institute possesses a claim
thereto on the basis of articles 91 and 95;
24
BU LLETIN OP THE BUBEAU OP LABOR,
Contributions due;
Advances paid;
Retirement and other pension amounts improperly paid;
Costs of procedure (art 311) which must be repaid;
Money fines imposed by the official agencies of the Imperial Insurance
Institute.
A rticle 95.
If benefits have been paid during a time when the recipient has a claim to
an imperial accident pension and if according to article 73 the retirement pen
sion or other pension should have been suspended, then the Imperial Insurance
Institute may through reducing the benefits, re-collect the amounts paid in
excess in appropriate installments.
SECTION THREE.—CARRIER OF THE INSURANCE.
I. DESIGNATION.
A rticle 96.
In so far as this law does not specify otherwise, the carrier of the insurance
is the Imperial Insurance Institute for Salaried Employees. (B eichsversiche ru n g s a n s ta lt f u r A n g e s te llte ) , to be established in Berlin.
II. LEGAL STATUS.
A rticle 97.
The Imperial Insurance Institute is a legal person.
It is a public authority.
III. OFFICIAL BODIES.
A rticle 98.
The official bodies of the Imperial Insurance Institute are:
1. The directorate ( D ir e k to r iu m ).
2. The administrative council ( V e r w a ltu n g s r a t ).
3. The pension committees (R en ten ausschiisse ).
4. The district agents ( V ertra u en sm d n n er ) .
I. THE DIRECTORATE.
A rticle 99.
The directorate represents the Imperial Insurance Institute in and out of
court. It has the status of a legal representative.
A rticle 100.
Paragraph 1. The directorate shall consist of a president and the requisite
number of official members as well as of two representatives each of the insured
salaried persons and of their employers (nonofficial members).
Par. 2. It shall make its decisions by a majority of the votes, unless this law
prescribes otherwise. In voting on a motion, such a number of nonofficial mem
bers shall not vote as is necessary to give the official members a majority.
Until the election of the nonofficial members, the directorate shall be qualified
to vote on motions without them. In other respects the transaction of business
shall be regulated by an order of business, which shall be issued by the imperial
chancellor after a hearing of the administrative council.
Par. 3. The directorate shall be under the supervision of the imperial chan
cellor. ’
A rticle 101.
The president and the official members of the directorate, as well as the
higher statutory officials, shall be appointed by the Emperor for life, upon the
nomination of the Federal Council. In so far as the nomination of the official
members and the higher statutory officials takes place after the creation of the
administrative council, the latter must be heard in advance.
GEBMAN INTSUBANCE LAW FOB SALABIED EMPLOYEES.
25
A rticle 102.
P a r a g r a p h 1. The officials designated in article 101 have the rights and
duties of officials of the Empire.
Par. 2. Their compensation, pensions, and other emoluments of service, as
well as the pensions and relief for their survivors, shall be borne by the Impe
rial Insurance Institute. The salary and pension schedule for the directorate
shall be determined by the budget of the Empire, while for the other officials
designated in article 101 they shall be determined annually by the Federal
Council upon the proposal of the imperial chancellor.
A rticle
103.
Paragraph 1. The nonofficial members of the directorate are elected by the
administrative council for six-year terms. For each member at least two sub
stitute members are elected; they represent the nonofficial member when he is
unable to serve, and if he leaves the directorate the substitutes enter the direc
torate for the remainder of that term, and do so in the order of their election.
Par. 2. The representatives of the employers are elected by the employer
members and the others by the salaried employee members from the member
ship of the administrative council.
Par. 3. Articles 112 to 114 are here correspondingly applicable.
Par. 4. A member of the administrative council who becomes a member of the
directorate, thereby ceases to be a member of the administrative council.
A rticle 104.
Paragraph 1. The other officials are appointed by the directorate. Article
102, paragraph 2, sentence 1, is here applicable. At least one-third of the posi
tions must be filled by persons entitled to civil positions because of military
service ( M ilit d r a m c d r t e r ), in so far as qualified applicants are available.
Par. 2. W ith the approval of the administrative council, the directorate issues
the service regulations for these officials.
A rticle
105.
Paragraph 1. The books of the Imperial Insurance Institute are to be closed
each year; for the fiscal year just expired, a balance sheet must be drawn up
on the basis of the books, and a report setting forth the condition as well as
the development of the Institute must be prepared and transmitted to the
imperial chancellor. The balance sheet and the report are to be laid before
the Imperial Parliament.
Par. 2. The fiscal year shall be the calendar year.
A rticle 106.
At every five-year period the balance sheet must have added to it the regular
actuarial balance (art. 173). For each year a preliminary balance is to be
drawn up. The Federal Council shall issue detailed regulations on this subject.
A rticle 107.
The accounts of the Imperial Insurance Institute in regard to its personal
and business costs of administration shall be audited by the Auditing Office
(B e c h n u n g s h o f ) of the German Empire.
2. THE ADMINISTRATIVE COUNCIL.
A rticle 108.
Paragraph 1. The administrative council shall advise the directorate in the
preparation of important decisions. The following matters are reserved for the
decision of the administrative council:
1. The determination of the preliminary budget (V o r a n s c h la g ), subject,
however, to the provisions of article 102, paragraph 2, sentence 2;
2. The final acceptance of the balance sheet (art. 105) and of the actuarial
balances (art. 106).
26
BULLETIN OF THE BUREAU OF LABOR.
P a r . 2. Until the administrative council is created, the directorate shall make
the decisions reserved to the former.
A rticle 109.
P a r a g r a p h 1. The administrative council shall consist of the president of the
directorate or his substitute, as presiding officer, and of not less than 12 repre
sentatives each of the insured salaried employees and of their employers. The
imperial chancellor may increase the number of members according to need.
Par. 2. The representatives of the employers shall be elected from the num
ber of the employer members of the district agents ( Vertrauemmarmer), the
others from the salaried employee members of the district agents.
A rticle 110.
Paragraph 1. The administrative council shall make its decisions by majority
vote. In other respects the conduct of business shall be regulated by an order
of business which the imperial chancellor shall issue after a hearing of the
administrative council.
Par. 2. The president shall call the meetings of the administrative council.
On the demand of the majority of the administrative council it must be con
vened.
A rticle 111.
P aragraph 1. The election shall take place according to the principles of
proportional representation.
P a r . 2. The imperial chancellor shall issue election regulations and shall
conduct the election through his representatives.
Par. 3. For each representative at least two substitutes must be elected;
they shall take the place of the representative when he is unable to serve and
if he leaves, they shall serve for the rest of the term in the order of their
election.
Par. 4. The imperial chancellor shall decide controversies relating to elec
tions.
A rticle 112.
Paragraph 1. Only adult Germans are eligible to the administrative council.
Par. 2. The following are not eligible:
1. Whoever as the result of a criminal verdict has lost the right to hold
a public office or who has been prosecuted because of a crime or mis
demeanor, which would result in the loss of this capacity: P ro v id e d ,
That the final trial has been inaugurated.
2. Whoever in consequence of a court decree, is restricted in the disposi
tion of his property.
A rticle 113.
Whoever regularly employs at least one insured salaried employee is eligible
as representative of the employers.
A rticle 114.
Only insured persons who are not eligible as representatives of the employers
are eligible as representatives of the insured persons.
A rticle 115.
Paragraph 1. The term of office lasts for six years.
Par. 2. The persons elected remain in office after the expiration of this term
until their successors assume office.
Par. 3. Whoever ceases to be a member may be reelected.
A rticle 116.
Paragraph 1. An employer may decline the election only for important
reasons, in particular the following:
1. If he has completed his sixtieth year;
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
27
2. If he has more than four minor legitimate children; those of his children
adopted by another shall not be counted in this connection;
3. If he is prevented by sickness or infirmity from administering the office
according to regulations;
4. If he has more than one guardianship or trusteeship ( Vormundschaft
Oder Pflegschaft). The guardianship or trusteeship of children of the
same parents shall count as only one; two coguardianships ( Gegenr
vormundschaften) shall be considered as one guardianship and an
honorary office in the imperial workman’s insurance system shall be
considered as one coguardianship.
P a r . 2. After a minimum tenure of office of two years a reelection for the
next following term of office may be declined.
A rticle
P a r a g r a ph
117.
1. The directorate shall decide whether a refusal to serve is
permissible.
Par. 2. Whoever declines election without a permissible reason, may be fined
by the president of the directorate not more than 500 marks [$119].
Par. 3. The directorate may release a representative from his office if an
important reason exists therefor.
P a r . 4. On appeal, the imperial chancellor shall decide finally.
A rticle
118.
The members of the administrative council and the nonofficial members of
the directorate shall administer their office without compensation as an
honorary office. For participating in sessions they shall receive a per diem
allowance and reimbursement for travel expenses according to fixed rates
determined by the imperial chancellor.
A rticle
119.
The representatives of the insured persons shall report to their employers
every call to a session. If they do this in due time, then their absence from
work shall not furnish the employer a sufficient reason for canceling the rela
tion of employment without observing the required period of notice.
Article 120.
1. If facts become known concerning a person who has been
elected which make him ineligible, then the administrative council, by a
decision, shall remove him from his office.
Par. 2. Before the decision is made, an opportunity must be given him to
make a statement.
Par. 3. Against such a decision an appeal to the imperial chancellor is per
missible.
Article 121.
P a r a g r a ph
Article 120 is correspondingly applicable to the nonofficial members of the
directorate.
3.
the
p e n sio n
c o m m ittees .
Scope o f th e ir a c tiv itie s .
A rticle
122.
The pension committee shall take cognizance of the. duties conferred upon
it in this law. In particular these include the following:
1. To determine and certify retirement pensions, other pensions and set
tlements ;
2. To withdraw and suspend retirement pensions and other pensions;
3. To take up applications for the inauguration of courses of medical
treatment, to investigate the facts in these cases and to notify the
Imperial Insurance Institute whenever it ascertains that through a
course of treatment an insured person may be kept from occupational
disability or that the recipient of a retirement pension or a widower’s
pension may again be made capable of carrying on his occupation.
4. To furnish information concerning matters of the salaried employees’
insurance system.
28
BULLETIN OF THE BUREAU OF LABOR,
A rticle
123.
1. The pension committee is an official body of the Imperial
Insurance Institute and has the properties of an official authority. However,
in making its decisions according to article 122, Nos. 1 and 2, it is not bound
by directions from the Imperial Insurance Institute.
Par. 2. In so far as this law does not regulate the order of business and
procedure of the pension committees, it shall be done by a decree of the Im
perial Chancellor which shall be issued after a hearing of the Imperial Insur
ance Institute.
Article 124.
P a r a g r a ph
With the approval of the admininstrative council, the Imperial Insurance
Institute may transfer to the pension committee the supervision of the re
cipients of retirement pensions; in the same manner and with the approval of
the Federal Council, still other matters may be assigned to the pension com
mittee through the Imperial Insurance Institute; excepted from this, however,
is the supervision of the payment of the contributions.
Article 125.
In the transaction of its business, the pension committee may require the
assistance of the district agents (arts. 143 to 155) in accordance with the pro
visions of this law.
T h e ir es ta b lis h m e n t .
Article 126.
The pension committees s^all be created according to need by the Imperial
Insurance Institute with the approval of the Federal Council. The latter shall
specify their seat and district and may change the same.
Article 127.
The Imperial Insurance Institute shall publish the seat and the district of
the pension committees within one month of their creation or change.
Article 128.
Each pension committee shall consist of a permanent presiding officer, of at
least one substitute and of associates ( B e is itz e r ) ; the requisite official em
ployees shall be furnished the pension committee.
T h e p re s id in g officer.
A rticle
129.
Paragraph. 1. The imperial chancellor shall appoint the presiding officer and
his substitute after a hearing of the highest administrative authorities for
whose district the pension committee has been created. The chancellor shall
also determine the duration of the office and the emoluments of the presiding
officer and his substitute.
Par. 2. Before entering upon their office, the presiding officer and his sub
stitute shall be obligated by the imperial chancellor or his representative to
the fulfillment of their duties.
Par. 3. If an imperial or State official is appointed to serve in a subsidiary
official quality, as presiding officer or his substitute, then such official shall
remain under authority of the officials who are his superiors in regard to his
principal office.
Article 130.
The presiding officer shall conduct the affairs of the pension committee.
T h e associates .
Article 131.
P a r a g r a p h 1. In the cases specified in-this law, insurance representatives
are to be called in as associates of the pension committee; in other cases, asso
ciates may be called in, in so far as the law does not provide otherwise.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
29
P ar . 2. They shall be taken one-half each from the insured salaried em
ployees and from their employers.
Par. 3. Only men may serve as associates in judicial decisions, especially in
the cases mentioned in articles 12, 13, 122 (Nos. 1 and 2), 210, 211, 215 (para
graph 3), 216, and 347.
A rticle 132.
P aragraph 1. The number of insurance representatives shall be at least 20;
the number may be increased by the pension committee with the approval of
the arbitration court, and also by the latter after a hearing of the pension
committee.
Par. 2. An insurance representative may not at the same time be an associate
in an arbitration court or in the superior arbitration court.
A rticle
133.
P a r a g r a ph 1. The associates from among the employers shall be elected by
written ballot from the employer members among the district agents, the other
associates from the salaried employee members among the district agents.
Par . 2. District agents who reside in the district of the pension committee
are eligible.
A rticle 134.
P ar a g r a ph 1. Articles 111 to 114 are here
Par . 2. Controversies concerning elections
correspondingly applicable.
shall be decided by the highest ad
ministrative authority in whose district the pension committee has its seat.
Article 135.
P a r a g r a ph 1. At least one-half of each group of the insurance representatives
( V e rs ic h e ru n g s v e rtre te r) must either reside or must be employed at the seat of
the pension committee itself or not more than 10 kilometers [6.2 miles] distant
therefrom.
Par. 2. In the election due consideration must be given to the principal
branches of industry and to the various sections of the district.
Par . 3. In this matter the Federal Council may issue special rules or even
rules conflicting with the above.
A rticle
136.
Articles 115, 116, and 119 are here correspondingly applicable.
A rticle
137.
P a r a g r a ph 1. Whether a declination to serve is permissible shall be decided
by the competent pension committee of the place of residence of the person
elected.
Par. 2. Whoever declines an election without a permissible reason may be
fined by the presiding officer of the pension committee not more than 50 marks
[$11.90].
Par. 3. The pension committee may remove a representative from his office if
there is an important reason for such action.
P a r . 4. On appeal the arbitration court shall decide finally.
A rticle
138.
P a r a g r a ph 1. If facts become known concerning an insurance representative
which nullify his eligibility or which indicate a serious violation of his official
obligations, then the presiding officer shall remove him from his office.
Par. 2. On appeal, the arbitration court shall decide finally.
A rticle
139.
P a r a g r a ph 1. Before rendering their first service, the presiding officer shall
obligate the insurance representatives to the faithful performance of their
duties.
30
BULLETIN OF THE BUREAU OF LABOR.
Par. 2. The presiding officer may impose a fine of not more than 30 marks
[$7.14] upon an insurance representative who neglects to perform his duties
and in case of repetition, a fine of not more than 100 marks [$23.80]. The fine
must be remitted if it is afterwards proved that there was a satisfactory excuse.
P a r . 3. On appeal the arbitration court shall decide finally.
Article 140.
P a r a g r a p h 1. The insurance representatives shall administer their offices
without compensation and as an honorary office.
P a r . 2. The Imperial Insurance Institute shall reimburse them for their cash
expenditures, and for their loss of time or loss of earnings it shall pay them a
fixed sum, which shall be specified by the imperial chancellor.
S u b o rd in a te officers .
Article 141.
The subordinate officers of the pension committee are officials of the Imperial
Insurance Institute; they shall be appointed by the Imperial Insurance Institute
after a hearing of the presiding officers of the pension committee.
E x p e n d itu re s .
A rticle
142.
All expenditures of the pension committee shall be defrayed by the Imperial
Insurance Institute.
4.
t h e d istrict a g e n t s .
A rticle
143.
The district agents ( V e rtra u e n s m w n n e r) shall elect the associates for the
pension committees, for the arbitration courts, for the superior arbitration court,
and for the administrative council.
A r t icle
144.
Special duties may be transferred by the pension committee to the district
agents. The latter must also, even without being so requested, make reports
on all facts which become known to them which in their opinion are of im
portance either for the pension committee or for the Imperial Insurance
Institute.
A rticle 145.
P a r a g r a ph 1. The district agents shall be elected, one-half each from the in
sured persons who are not employers and from the employers of the insured
salaried employees.
Par. 2. Their number shall be six for the district of a lower administrative
authority; if more than 10,000 insured persons reside in the district of the lower
administrative authority, then the highest administrative authority may for
each additional 10,000 or part thereof increase the number of district agents
by two.
Par. 3. It shall remain within the discretion of the highest administrative
authority to reduce the number of district agents to the number of two for
smaller districts, or to consolidate the districts of several lower administrative
authorities into one district, and to specify by which of the inferior administra
tive authorities, the business shall be transacted which is referred to these
authorities according to article 149, paragraph 3, article 152, paragraph 2,
article 153, and article 154, paragraph 1.
A rticle
146.
The district agents selected from the employers shall be elected by the em
ployers of the insured salaried employees while the others shall be elected by
the insured salaried employees.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
31
A kticle 147.
P a b a g b a ph 1. Adult Germans have the right to vote in so far as they belong
to the group of insured salaried employees or of their employers and reside in
the district of the lower administrative authority.
P ab . 2. The persons described in article 112, paragraph 2, are not entitled to
vote.
A bticle 148.
In the election by the employers the imperial chancellor may fix the number
of votes at a varying number according to the number of insured persons em
ployed by them.
,
A bticle 149.
P a b a g b a p h 1. The election shall be by written ballot according to the princi
ples of proportional representation. For the insured salaried employees, the
insurance card (art. 188) shall serve as identification, while for the employers
a certificate made out by the communal authority shall serve. In the second
and following elections after this law comes into force, only those insurance
cards shall serve as identification which show at least one contribution to have
been made within the last 12 months before the election.
P a b . 2. The imperial chancellor shall issue the election regulations and shall
appoint the one to conduct the election.
P a b . 3. In controversies concerning the election, the lower administrative
authorities shall decide.
A bticle 150.
For every district agent there shall be elected in the same manner two sub
stitutes ; they shall take his place when he is unable to serve and if he leaves,
they shall serve for the remainder of the term in the order of their election.
A bticle 151.
Eligible as district agent are only those insured persons who are not em
ployers, and employers of the insured salaried employees who reside in the
district of the lower administrative authority, or in the case of employees are
employed there or in the case of employers have the seat of their establishment
there, and who are not ineligible according to article 112.
A bticle
152.
P a b a g b a ph 1. Articles
P a b . 2. In so long and
115, 116 and 119 are here correspondingly applicable.
so far as no election takes place or the elected persons
decline to perform their duties, the lower administrative authorities shall
appoint the district agents from the number of those eligible.
A bticle
153.
1. The lower administrative authority shall decide whether it is
permissible to decline to serve.
P a b . 2. Whoever declines an election or an appointment to office, without
permissible ground, may be fined by the lower administrative authority up to
150 marks [$35.70].
P a b . 3. The lower administrative authority may remove a district agent from
his office if important reasons exist for such action.
Pab. 4. On appeal the higher administrative authority shall decide.
P a b a g b a ph
A b t icle 154.
1. If facts concerning a district agent become known which make
him ineligible or indicate a serious violation of his official duties, then the
lower administrative authority shall remove him from his office.
P a b . 2. On appeal the higher administrative authority shall decide.
P abagbaph
A bticle
155.
P a b a g b a ph 1. The district agents shall administer their office without com
pensation and as an honorary office.
32
BULLETIN OF THE BUREAU OF LABOR,
P a r . 2. The Imperial Insurance Institute shall reimburse them for their cash
expenditures. In special cases, reimbursement for their loss of time or their loss
of earnings may be granted them. The Imperial Insurance Institute can issue
regulations in regard to this matter.
SECTION POTJIL—THE ARBITRATION COURTS AND THE SUPERIOR ARBI
TRATION COURT.
I. GENERAL PROVISIONS.
A rticle
156.
P a r a g r a ph 1. The arbitration courts and the superior arbitration court are
the judicial authorities of higher instance.
P a r . 2. In so far as this law does not regulate the order of business and the
procedure of the arbitration courts and of the superior arbitration court, it
shall be done by imperial decree with the approval of the Federal Council.
II. THE ARBITRATION COURTS.
1. THEIR ESTABLISHMENT.
A rticle 157.
The arbitration courts according to the provisions of this law shall take
cognizance of the business of the insurance of salaried employees as the higher
authorities for rendering opinions and decisions.
A rticle 158.
The number of, the seat, and the district of the arbitration courts shall be
specified by imperial decree with the approval of the Federal Council. Changes
may be made in the same manner.
2. THEIR COMPOSITION.
A rticle 159.
The arbitration court shall consist of the president, his substitute and the
associates.
A rticle 160.
P a r a g r a ph 1. The associates shall be elected one-half each from the insured
persons who are not employers, and from the employers of the insured salaried
employees.
P a r . 2. The number of the associates shall be at least 12; this number may be
increased by the highest administrative authority of the district in which the
arbitration court has its seat.
P a r . 8. The president, his substitute and the associates may not at the same
time be members of the superior arbitration court.
A rticle
161.
P a r a g r a p h 1. Articles 127, 129, 130 and 133 to 140 are here correspondingly
applicable; however, only men are eligible. The president shall be appointed,
as far as the principal office is concerned or for the term of the principal office,
from the number of public officials. The temporary appointment of an officer to
the place of president may not exceed the period of one year.
Par. 2. Fines (arts. 137 and 139) may be imposed up to 300 marks [$71.40].
Par. 3. In appeals and controversies concerning elections, the superior ar
bitration court shall decide.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
33
III. THE SUPERIOR ARBITRATION COURT.
1. ITS ESTABLISHMENT.
Article 162.
P a r a g r a p h 1. In accordance with the provisions of this law, the superior ar
bitration court shall take cognizance of the business of the insurance of salaried
employees as the highest authority for opinions and decisions.
Par. 2. Its seat shall be in Berlin.
Article 163.
Its decisions are final.
2. ITS COMPOSITION.
Article 164.
P a r a g r a ph 1. In regard to the composition of the superior arbitration court,
articles 159 to 161 are correspondingly applicable; however, the president shall
be appointed fo£ the term of his principal office or for life.
P a r . 2. The officials to be called into service according to article 288 shall be
appointed by the imperial chancellor for the term of their principal office.
Temporary appointments may not exceed the period of one year. For these
officials, the requisite number of substitutes shall be appointed.
Article 165.
For participating in the work and sessions of the superior arbitration court,
the members appointed shall receive an allowance which the imperial chancel
lor shall determine.
IV. SUPERVISION.
COSTS.
Article 166.
Paragraph 1. The highest administrative authority in whose district the seat
is located shall conduct the supervision of the arbitration court.
P a r . 2. This authority shall supply the necessary subordinate officials and
provide the business offices.
P a r . 3. The officers, clerical force, and the subordinate employees shall have
the rights and duties of imperial or State officials if they are employed for the
office itself, and not merely temporarily or as a means of training; the State
Government shall specify the details in this respect.
Par. 4. The president shall obligate them to the faithful performance of
their duties in so far as they are not already obligated through an oath of
office.
Article 167.
Paragraph 1. All expenses of the arbitration court shall be advanced by the
federal State in which its seat is located.
Par. 2. The Federal Council may, upon application of the Imperial Insur
ance Institute, determine the basis for the apportionment of the expenses.
Article 168.
Paragraph 1. The fines as well as the specially imposed costs of procedure
(art. 311) shall be turned into the treasury of the Imperial Insurance Institute.
Par. 2. The Imperial Insurance Institute shall each quarter reimburse the
federal States upon demand for expenditures made.
Article 169.
Paragraph 1. The imperial chancellor is charged with the supervision of
the superior arbitration court.
58966°—13----- 3
34
BULLETIN* OF THE BUBEAU OF LABOR.
Par. 2. The Imperial Treasury shall advance the cost of the superior arbitation court.
Par. 3. For other matters, articles 166 to 168 shall be correspondingly
applicable.
SECTION FIVE.—PROVIDING FOR THE BENEFITS.
I. RAISING THE MEANS.
1. GENERAL PROVISIONS.
Article 170.
Paragraph 1. The employers and the insured persons shall provide the means
for the insurance.
Par. 2. They shall pay for each calendar month in which the employment
subject to the insurance has taken place, current contributions in equal parts.
The same shall apply to periods of sickness in which the insured person has
continued to draw his salary.
Par. 3. Only those persons are exempt from contributions who are receiving
retirement pensions according to the provisions of this law.
Article 171.
In the computation of the benefits the contributory months shall be the cal
endar months for which the contributions have been paid.
2. AMOUNT OP THE CONTRIBUTIONS.
Article 172.
Paragraph 1. The monthly contribution is to be computed according to the
procedure of average premium (P rd m ie n d u rc h s c h n itts v e rfa h re n ) for all in
sured persons of the same salary class, and to be of equal amount. For the
present it shall amount to the following:
In salary class A.
1. 60 marks [$0.38]
In salary class B.
3.20 marks [$0. 76]
In salary class C.
4.80 marks [$1.14]
In salary class D.
6.80 marks [$1. 62]
In salary class E.
9.60 marks [$2.28]
In salary class F.
13.20 marks [$3.14]
In salary class G.
16. 60 marks [$3. 95]
In salary class H.
20.00 marks [$4.76]
In salary class I.
26. 60 marks [$6.33]
Par. 2. The acknowledgment fee (A n e rk e n n u n g s g e b u h r) for the maintenance
of the claim shall amount to 3 marks [$0.71] a year and may be paid either in
partial amounts or in one sum.
Article 173.
The Imperial Insurance Institute shall draw up for five-year periods and at
first for December 31, 1919, an actuarial balance sheet for testing the adequacy
of the contributions.
Article 174.
The Federal Council shall specify the rate of interest for the actuarial com
putation. In other matters, articles 40 and 261 of the Commercial Code
( H an d elsg esetzb u ch ) shall receive corresponding application.
Article 175.
If the actuarial balance sheet shows a deficiency, then the contributions are
to be correspondingly increased by law. If it shows a surplus, then in the
same manner the benefits to be granted in the future may be increased.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
85
3. PAYMENT OF THE CONTRIBUTIONS THROUGH THE EMPLOYERS.
Article 176.
An employer who has employed an insured person throughout a contributory
month shall p*ay the contribution for himself and for the insured person.
A rticle
177.
If several employers employ an insured person during the month or if the
employment has not taken place through the whole of the contributory month,
then each employer must pay 8 per cent of the compensation paid for the
employment as his contribution. The contribution so computed for the month
shall be rounded off upward to even 10 pfennigs [2.4 cents]. If the contribu
tions so paid for the month exceed the contribution of the highest salary class,
then the amount in excess shall be credited to the insured person for later
contributory months.
A rticle 178.
P a r a g r a ph 1. At the time of the salary payment, a person subject to the
insurance must allow the deduction from his salary of one-half of the amount
of the contributions, and whoever has insured himself in a higher than the
legal salary class without having agreed with the employer for the insurance
in such higher salary class must also permit deduction from his salary of the
amount in excess. Only in this manner may the employer reimburse himself
for the insured person’s share of the contribution.
P a r . 2. The deductions are to be distributed equally upon the times of the
salary payment. The partial amounts are to be rounded off upward to sums
of even 10 pfennigs [2.4 cents].
A rticle 179.
If the deductions have not been made at the time of the salary payment,
then they may be made up only at the first following payment, unless the
employer, without any fault on his part, later pays valid contributions (art.
205).
Article 180.
The highest administrative authority may specify in what manner the share
of the contributions of persons subject to the insurance is to be made from
their compensation when the latter consists only of payments in kind or is
provided by third persons.
A r t icle 181.
P a r a g r a ph 1. In the cases mentioned in article 176, the employers must for
ward postpaid to the contribution office (B e itra g s s te lle ) those contributions
which are due at the close of the month, not later than the 15th of the next
following month.
P a r . 2. At the time of the first payment of contributions the employers must
forward to the contribution office a summary statement of the contributions
due, and the office shall transmit the same to the Imperial Insurance Institute.
P a r . 3. Whenever a change occurs, the employers must report this fact to
the contribution offices not later than the time of the next contribution payment.
P ar . 4. The contributions shall be paid into the Imperial Bank (R e ic h s J x m k )
for the account of the Imperial Insurance Institute.
Article 182.
On the basis of these reports the Imperial Insurance Institute shall draw
up insurance accounts for the computation of the claims of the insured salaried
employees and their dependents.
Article 183.
Paragraph 1. Contributions paid in shall be receipted for by means of stamps
which the Imperial Insurance Institute shall supply to the contribution offices
for each of the salary classes.
Par. 2. The stamps must contain the designation of the salary class and of
the money value.
36
BU LLETIN OF THE BUBEAU OF LABOK,
A rticle 184.
With the approval of the imperial chancellor, the Imperial Insurance Insti
tute may permit longer periods of payment (art. 170), a different procedure
of payment (art. 181), and other means of receipt (art. 183).
A bticle 185.
Pabagbaph 1. The employers must immediately affix the stamps so received
to the insurance cards of the salaried employees and must cancel them. The
stamps shall then be considered as a receipt for the payment of the contribution.
Pab. 2. The Federal Council shall issue regulations for the cancellation; it
may also punish violations with fines of not more than 30 marks [$7.14.]
A bticle
186.
The contribution offices shall be established by the Imperial Insurance Insti
tute according to need. In so far as special contribution offices are not created,
then upon application of the Imperial Insurance Institute their business shall
be conducted by the offices designated for this purpose by the highest administra
tive authority or transacted by the post office. The compensation to be granted
to the contribution offices shall be determined by the Federal Council after a
hearing of the Imperial Insurance Institute.
A bticle 187.
Pabagbaph 1. In the cases mentioned in article 177, the employers must affix
special stamps on the insurance cards upon payment of the salary for the con
tributions then due and this must be done not later than at the close of the
contributory month. The stamps shall serve as the basis for the computation
of the legal benefits. Stamps are to be obtained from the contribution offices
and offices for the sale of stamps established by the Imperial Insurance Insti
tute. The stamps so affixed are to be canceled. Article 185, paragraph 2, is
here to be applied in corresponding manner.
Pab. 2. The value of the stamps so affixed must be equal to the value of the
contributions due rounded off upward to even 10 pfennigs [2.4 cents].
P a b . 3. With the approval of the imperial chancellor, the Imperial Insurance
Institute may also issue other regulations for the collection of these contri
butions.
A bticle 188.
The insured person must provide himself with an insurance card. By means
of an application card for admission, which shall give information concerning
his age, family conditions and the receipts representing his salary, the insured
person shall make application at the office of issue (art. 194) for the issuance
of an insurance card. The local police authority may require him to take these
steps under penalty of a fine of not more than 10 marks [$2.38]. If the insured
person has no insurance card or if he refuses to produce it, then the employer
may procure one for him.
A bticle 189.
At the close of the month, the office of issue shall send to the Imperial In
surance Institute the application cards for admission which have come in during
the course of the month.
A bticle 190.
By presenting a new application for an admission card, the insured person
may always demand a new insurance card.
A bticle 191.
After hearing the Imperial Insurance Institute, the Federal Council shall
specif the form of the report (art. 181), the insurance card (art. 185) and the
application card for admission (art. 188). The cost of the preparation and
delivery of these shall be borne by the Imperial Insurance Institute.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
37
Article 192.
The insurance card shall contain the year and day of issue and the contents
of the provisions of articles 195, 198, 199 and 347.
Article 193.
Paragraph 1. It must have space for at least 48 stamps. In the cases men
tioned in articles 177 and 187 the Federal Council may specify that it shall con
tain space for a larger number of stamps.
Par. 2. For each insured person, the cards shall be numbered consecutively.
Article 194.
Paragraph 1. The higher administrative authority shall specify the offices
which shall issue the cards (offices of issue) [A u sg abestellen,].
Par. 2. The imperial chancellor shall specify the offices of issue in the pro
tectorates.
Article 195.
Paragraph. 1. Within five years after the date of issue, the card shall be re
placed by a new one. If this is not done, then the local police authority may
require the insured person to take such action under penalty of a fine of not
more than 10 marks [$2.38].
Par. 2. In the cases mentioned in articles 177 and 187, the insured person is
required to forward the insurance card to the Imperial Insurance Institute not
later than two months after the expiration of the calendar year. The insured
person may for this purpose request the intervention of the offices established
by the Imperial Insurance Institute for the receipt of contributions and the
issue of stamps, which offices on request shall accept the cards and also give a
receipt therefor and shall forward the cards to the Imperial Insurance Institute.
Par. 3. Whoever does not send in the insurance card punctually, may be
punished by the Imperial Insurance Institute with a fine of not more than
20 marks [$4.76].
Par. 4. On appeal the imperial chancellor shall decide finally.
Par. 5. The fines shall be collected in the same manner as communal taxes.
Article 196.
For making out the cards, the offices of issue shall be granted a compensation,
the amount of which shall be determined by the Federal Council after a hearing
of the Imperial Insurance Institute.
Article 197.
Paragraph 1. Insurance cards which are lost or which become unusable or
which are destroyed shall be replaced by new ones.
Par. 2. Contributions which can be proved shall be transferred and certified
to; the Imperial Insurance Institute shall be consulted in advance if a card
which has become unusable is not produced, and in every case it shall be notified
afterwards by a new application card for admission.
Article 198.
The cards may contain only the statements prescribed by law and shall bear
no special marks of any kind; above all they may not contain anything con
cerning the conduct or services of the owner.
Article 199.
Paragraph 1. No one may retain the insurance card contrary to the will of
its owner. This shall not apply to the competent officers, if they retain cards
for the purpose of making out new ones, of making corrections or of supervis
ing contributions.
Par. 2. Whoever retains a card contrary to this provision shall be responsible
to the one entitled thereto for any damages arising therefrom. The local police
authority shall take possession of the card and turn it over to the one entitled
thereto.
38
BU LLETIN OF THE BUREAU OF LABOR.
A b t icle
200.
The Federal Council shall specify how the contributions for persons subject
to the insurance under the provisions of articles 3 and 4 shall be collected.
4. PAYMENT OF THE CONTRIBUTIONS THROUGH THE INSURED PERSONS.
A rticle
201.
In the case of the voluntary continuation of the insurance or of the mainte
nance of the rights already attained (art. 15), the contributions or acknowledg
ment fee are to be sent in by mail postpaid to the Imperial Insurance Institute
not later than at the expiration of the calendar year for which they were to be
applicable. Until the arrival of the receipt therefor from the Imperial Insur
ance Institute, the post-office receipt shall serve as a receipt. In special cases,
the Imperial Insurance Institute may also permit other insured persons to make
payment of their contributions by mail.
A rticle
202.
With the approval of the Federal Council, the Imperial Insurance Institute
may regulate the payment of contributions in other ways.
A rticle
203.
The insured person (art. 201) is required at any time to give upon demand
to the Imperial Insurance Institute information in regard to his family status
and the age of the members of his family. The local police authority may
require him to do this under penalty of a fine of not more than 10 marks [$2.38].
A rticle
204.
Whoever insures himself voluntarily during an employment for which he is
paid but not paid in cash, or which is only a tem porary employm ent (articles
7 and 8), shall have a claim to the share of the contribution of the employer.
The latter may decline to pay more than he would be required to pay according
to this law for an employment subject to the insurance.
5. INVALID CONTRIBUTIONS.
A rticle
205.
Obligatory contributions are to be refused if they are paid after the expira
tion of two years; in case, however, the payment of the contribution has been
omitted through no fault of the party affected, then after the expiration of
four years after the date when due.
A rticle
206.
After the beginning of the occupational disability, voluntary contributions
may not be paid.
A rticle 207.
P a r a g r a ph 1. Provided that the contributions are thereafter paid within an
appropriate period, the following shall be considered as equivalent to the pay
ment of the contribution in the meaning of articles 205 and 206:
1. A notice of payment due sent to the employer by the competent office;
2. A declaration of the employer or of the insured person of his readiness
to make subsequent payment as regards such office.
Par. 2. Periods of time in which a controversy concerning contributions (arts.
210 and 211) or a procedure in regard to a claim for retirement pensions or
other business is pending, shall not be included in the time-limits mentioned in
articles 205 and 206.
Par. 3. These facts (pars. 1 and 2) shall also interrupt the lapsing of arrears
of contributions (art. 228).
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
A rticle
39
208.
If within one year after the payment of the contributions, the Imperial In
surance Institute has not objected to the insurance obligation or the right to
voluntary insurance, then the claim to a pension shall not be disallowed for
the reason that the contributions have been paid without legal basis.
6. CONTRIBUTIONS PAID BY MISTAKE.
A rticle
209.
P a r a g r a ph 1. Contributions which have been paid under a mistaken assump
tion that the insurance obligation exists and the return of which is not de
manded, shall be considered as paid for the voluntary continuation of the
insurance if the right thereto exists at the time of payment
Par. 2. The insured person may demand the return of the contributions
within 10 years after their payment if a retirement pension or other pension
has not already been granted to him with legal effect and if the payment of
the contribution has not been made for a fraudulent purpose.
P a r . 3. The employer may no longer demand the return of the contributions
if the insured person has returned to him the value of his share or if two
years have elapsed since the time of payment.
7. CONTROVERSIES CONCERNING CONTRIBUTIONS.
A rticle
210.
1. In case of a controversy concerning the payment of contri
butions, unless it has arisen on the determination of the benefits, the pension
committee which is competent for the place of employment shall decide, and
on appeal the arbitration court shall decide finally.
P a r . 2. If the matter concerns the application of legal provisions of funda
mental importance, and these provisions have not yet been passed upon, then
the arbitration court shall turn the matter over to the superior arbitration
court, at the same time setting forth its own views: P ro v id e d , That the one
making the appeal has applied therefor within the time limit allowed. Other
parties affected may also make this application within one week after they
have been granted an opportunity to make a statement. In these cases the
superior arbitration court shall decide instead of the arbitration court.
P a r . 3. If in the procedure according to this law the insurance obligation of
the person is decided negatively because such person does not belong to those
designated in article 1, paragraph 1, then in the opinion it must be decided
whether such a person belongs to those designated in article 1226, paragraph
1, Nos. 1 or 6, of the Imperial Workmen’s Insurance Code. If it is decided that
he does belong to this group of persons, then this decision is binding for the
procedure according to the Imperial Workmen’s Insurance Code. An oppor
tunity for making a statement must be given to the carrier of the invalidity
insurance; the latter is authorized to inaugurate legal procedure, and as an
interested party to make application according to paragraph 2, above.
P a r . 4. If in the procedure according to the Imperial Workmen’s Insurance
Code, the insurance obligation of a person is decided negatively because he
does not belong to the persons designated in article 1226, paragraph 1, No&
1 or 6, then in the opinion it must be decided whether he belongs to the persons
designated in article 1, paragraph 1, of this law. If it is decided that he does
belong to this group of persons, then this decision is binding for the procedure
according to this law. Paragraph 3, sentence 3, above, is applicable as concerns
the carrier of the insurance of salaried employees.
P a r a g r a ph
Article 211.
All other controversies between employers and employees in regard to the
computation and accounting, return, and reimbursement of the contributions
(arts. 176 to 180, 185, 187 and 204) shall be decided finally by the pension
committee competent for the place of employment.
A rticle
212.
If the controversy is decided finally, then the pension coihmittee shall take
steps to see that the contributions collected in insufficient amount shall later
40
BULLETIN OF THE BUREAU OF LABOR,
be covered according to articles 181 to 183. Contributions collected in excess;,
the return of which may still be demanded (article 209), the committee shall
on application collect from the Imperial Insurance Institute and pay back to
the party affected. The stamps shall be destroyed.
A rticle
213.
If the insurance obligation or right to insurance is finally decided negatively,
then the parties affected shall on application have paid back to them the con
tributions which have not yet become forfeited. In this connection, article
209 is not affected.
8.
SUPERVISION.
A rticle
214.
The Imperial Insurance Institute shall supervise the punctual and complete
payment of contributions. It may transfer this business to the pension com
mittee (art. 124).
A rticle 215.
P a r a g r a p h 1. The employers must give information concerning the number
of their employees, their earnings and the duration of the employment to the
pension committee competent for the place of employment, and to the Imperial
Insurance Institute itself, as well as to the authorized agents of both. The
insured persons also must give information concerning the place and duration
of their employment as well as their earnings.
Par. 2. On demand both groups are required to give to the authorities desig
nated above and their authorized agents, the insurance cards for examination
•and correction upon the giving of a receipt.
Par. 3. The pension committee may require the employers and the insured
persons to comply with their duties (pars. 1 and 2) under penalty of a fine of
not more than 150 marks [$35.70]. On appeal the arbitration court shall decide
finally.
A rt ic l e 216.
With the approval of the imperial chancellor, the Imperial Insurance Insti
tute may issue regulations concerning supervision. The imperial chancellor
may order the issuance of such regulations, and if such order is without effect,
may issue them himself. The pension committee may require the employer and
the insured persons to comply with such regulations under penalty of a fine
of not more than 150 marks [$35.70]. On appeal the arbitration court shall
decide finally.
A rticle 217.
P a r a g r a ph 1. If on account of the supervision cash expenditures are made,
then they may be imposed upon the employer if they have been caused by his
neglect of duty. On appeal, the arbitration court shall decide finally.
Par. 2. The expenses shall be collected in the same manner as communal
taxes.
A rticle 218.
With the consent of the parties affected or at the conclusion of the procedure
in controversies, the insurance card shall be corrected by the supervisory
authorities or their duly authorized agents according to articles 181 to 183.
II. ASSETS.
A rticle
219.
P a r a g r a ph 1. The means of the Imperial Insurance Institute may be em
ployed only for the purposes prescribed or permitted by law.
Par. 2. The income and expenditures are to be accounted for separately and
the assets in hand shall be kept separately.
P a r . 3. The Imperial Insurance Institute may undertake only such business
as is authorized to it by law.
GEBMAN INSUBANCE LAW FOB SALABIED EMPLOYEES,
41
A rticle 220.
P a r a g r a p h 1. The assets o f the Imperial Insurance Institute must be invested
at interest in the same manner as trust funds (arts. 1807 and 1808 of the Civil
Code) in so far as this law does not permit otherwise.
P a r . 2. In addition, the assets may be invested in the securities which are
permissible according to State law for the investment of trust funds, as well as
in registered mortgage debentures issued by German mortgage banks, on which
the Imperial Bank (R eichsbanlc) makes loans under the rating of class 1.
A rticle 221.
P a r a g r a p h 1. In the meaning of article 1807, paragraph 1, No. 1, of the
Civil Code, the security of a mortgage, a trust on real estate or a ground rent
{ H y p o th e c R en ten sch u ld , G ru n d s c h u ld ) may be assumed, if the loan does not
exceed three-fifths of the value of the parcel of ground. In so far as the
highest administrative authority of a federal State in accordance with article
11, paragraph 2, of the law on mortgage banks (H ypotheJceribankgesetz) per
mits loans on agricultural real estate up to two-thirds of the value, the security
of such loans may also be assumed.
Par. 2, The loan may as a rule be made only on a first mortgage.
A rticle 222
Loans are not to be permitted on building lots and on such new buildings as
have not yet been completed and 4° not yet produce an income, as well as on
parcels of ground which do not provide a permanent income, more particularly
such as pits, quarries and mines.
A rticle
223.
The value of the real estate assumed at the time the loan is made may not
exceed the ordinary value as determined through a careful investigation. In
the determination of such value, only the permanent qualities of the real estate
and such return therefrom are to be considered which the real estate can per
manently provide any owner managing it in the usual and ordinary manner.
A rticle
224.
P a r a g r a p h 1. The imperial chancellor may permit assets to be invested in
loans to communes and unions of communes, to school communes and church
communes in so far as such action is not already permissible according to
article 220, paragraph 1. The creditor must have the right to call the loan
after giving notice or it must contain provision for a regular amortization.
Par. 2. He may also restrict investments in specific categories of interestbearing securities to specific amounts.
P a r . 3. With the right to revoke such permission, the chancellor may also
permit temporarily available funds to be invested in other ways.
A rticle
225.
P a r a g r a p h 1. With the approval of the imperial chancellor, the Imperial
Insurance Institute may invest not more than one-fourth of its assets in a
manner differing from that specified in articles 220 and 224.
Par. 2. Such investment may be made only in securities; it may be made
in other ways only for purposes of administration, to avoid loss in assets or
in undertakings which are exclusively or principally for the benefit of the
insured persons.
A rticle 226.
Not less than one-fourth of the assets must be invested in the bonds of the
Empire or of the federal States.
A rticle 227.
1. Arrears shall be collected in the same manner as communal
taxes. The postponing effect of protests against the obligation to make pay
ment shall be regulated according to the provisions of State laws.
P
a r a g r a p h
42
B U LLETIN OF TH E BUREAU OF LABOR.
Par. 2. In so far as it is not already specified according to State law, the pro
cedure of compulsory collection must be preceded by a demand in due legal
form. A fee for this demand may be collected. This shall be collected in the
same manner as arrears. The determination of its amount must have the
approval of the imperial chancellor.
P a r . 3. Arrears shall be considered as preferred debts as specified in article
61, No. 1, of the Code on Bankruptcy (K o n k u rs o rd n u n g ).
A
r t ic l e
228.
P a r a g r a p h 1. The claim to arrears lapses in two years after the expiration
of the calendar year when due: P ro v id e d , That the payments are not purposely
defaulted.
Par. 2. The claim for repayment of contributions lapses in six months after
the expiration of the calendar year in which they have been paid, subject,
however, to the provisions of article 209 paragraph 2, articles 212 and 213.
Par. 3. The claim to benefits of the Imperial Insurance Institute expires in
four years after the date when due, in so far as this law does not prescribe
otherwise.
SECTION SIX .— PROCEDURE.
I. PROCEDURE BEFORE THE PENSION COMMITTEE.
1. SUBMISSION OF CLAIMS.
A rticle 229.
Paragraph 1. Applications for benefits are to be made to the pension com
mittee ; the documents in proof are to be attached.
Par. 2. With legal effect, the application may also be made to one of the other
official bodies of the Imperial Insurance Institute or to one of the other authori
ties of the Empire. The latter must without delay forward the documents to
the competent pension committee.
P a r . 3. Minor persons who have reached their sixteenth year may inde
pendently file applications for themselves and prosecute such applications inde
pendently.
A rticle 230.
Paragraph 1. That pension committee shall be competent in whose district
the insured person resides or is employed at the time of the application.
Par. 2. If several pension committees are compentent under this provision,
then that committee shall take precedence to which the application was first
made.
A rticle 231.
Paragraph 1. If the insured person had no residence or place of employment
in Germany or if he has died or disappeared, then his last place of residence
or employment in Germany shall be decisive.
Par. 2. If such place does not exist, then the seat of the undertaking shall be
decisive in which the insured person is employed or was last employed.
A rticle 232.
Paragraph 1. If the pension committee considers that another committee is
competent, then it shall transfer the matter to such committee.
Par. 2. If the latter committee likewise does not consider itself competent,
then the presiding officer of the arbitration court to which both authorities are
subordinate shall decide, or if such does not exist then the superior arbitration
court shall decide.
Par. 3. The decision is final and is binding upon the bodies of lower instance.
2.
d is q u a l if ic a t io n
and
c h a l l e n g in g
of
A r t ic l e
m em bers of t h e
p e n s io n
c o m m it t e e .
233.
The following may not participate in the oral proceedings:
1. Whoever is himself one of the parties in the matter;
2. Whoever is obligated to make compensation to one of the parties.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
43
3. Whoever is married or has been married to one of the parties;
4. Whoever is related to a party either in the direct line or by marriage,
or is related in a collateral line in the second or third degree, or is
related by marriage in the second degree.
5. Whoever has been called into the case as the authorized representative
or as counsel of a party, or is or has been entitled to appear as the
legal representative of a party.
6. Whoever has been examined in the case as a witness or as an expert.
A rticle 234. .
Paragraph. 1. Members may be challenged both for reasons which justify
their disqualification and because of being prejudiced. A challenge on account
of prejudice is justified if facts are submitted which may warrant distrust of
the member’s inpartiality.
Par. 2. No member may be challenged as prejudiced if the party knew the
reason for challenging before, but brings it forward only after the party has
entered into a proceeding, or motions have been made.
A rticle 235.
Paragraph. 1. The grounds for challenging must be proved.
Par. 2. If the party challenges a member as prejudiced after the proceedings
have been started or after motions have been made, then he must show that the
grounds for the challenge have arisen at a later time or have only later become
known to him.
A rticle 236.
Paragraph 1. If the presiding officer or the substitute of the presiding officer
is challenged, then the arbitration court shall decide finally.
Par. 2. If an insurance representative is challenged, then the presiding officer
shall decide. If he declares the motion to be well founded, then the decision is
final. If he disallows the motion, then the decision may only be contested with
the decision in the principal case. The decision of the arbitration court as to
the challenge is final.
Par. 3. A decision is not required if the person challenged admits the claim
to be well founded.
A rticle 237.
Article 236 shall also be applicable if a member of the pension committee him
self reports a fact which would justify his exclusion from the committee, or if
doubts arise on the point as to whether such member is excluded for legal
grounds.
3. DETERMINATION OF THE BENEFITS.
A rticle 238.
Applications for the inauguration of a course of medical treatment (art. 36)
shall be turned over by the presiding officer of the pension committee to the
Imperial Insurance Institute after setting forth the facts in the case.
A rticle 239.
The pension committee shall determine the other benefits.
A rticle 240.
Paragraph 1. The presiding officer of the pension committee shall decide, by
himself without oral proceedings, in case the matter relates to retirement pen
sions because of the completion of the legal age, or concerns annuities, or con
cerns survivors’ pensions, or concerns a settlement or a return of contributions.
Par. 2. The decree (art. 123, par. 2) -may specify additional cases in which
the presiding officer shall decide by himself without oral proceedings.
44
BU LLETIN OF TH E BUREAU OF LABOR.
A rticle 241.
P aragraph 1. In the preparation of the decision, the presiding officer may
make inspections on his own discretion, may take the testimony of witnesses and
experts, especially from coemployees of the applicant, and may also take such
testimony under oath, as well as procure opinions from physicians and official
information of any kind whatever.
P ar . 2. If procuring the proof by the presiding officer of the pension committee
meets with serious difficulties, more particularly because of the great distance
of the place of abode of the person from whom the testimony is to be secured
from the seat of the pension committee, then the presiding officer of another
pension committee, or if procuring the proof before the presiding officer of an
other pension committee be similarly subject to great difficulties, then another
official body or in the case of taking testimony under oath the local court
(A m ts g e ric h t) may be requested to do this work. The same rule shall be ap
plicable in case there is risk from delay.
P ar . 3. In making the inspection, and in taking the testimony of witnesses and
experts, the Imperial Insurance Institute and the applicant must be given oppor
tunity to participate.
A
r t i c l Ie
242.
P aragraph 1. If the undertaker of the establishment declines to allow the
presiding officer of the pension committee to make the inspection, then the local
police authority at the request of the presiding officer may compel him to submit
to it.
P ar . 2. The highest administrative authority shall specify in how far para
graph 1 shall be applicable to establishments which are placed under the
supervision of the mining authorities
P ar . 3. If the inspection is to be made in a service room of an authority or
in a vessel of the Imperial Navy, then the consent of the competent service au
thorities or of the commanding officer must be secured.
A rticle 243.
P aragraph 1. The provisions of the Code of Civil Procedure ( Z iv ilp ro -
s e s s o r d m i n g ) in regard to the obligation to appear as a witness or as an expert,
to submit to examination and the taking of an oath, are here correspondingly
applicable.
P ar . 2. Witnesses and experts shall be sworn only if it is necessary in order
to procure truthful testimony. Testimony may not be declined to be given
because this law affords a basis for the obligation of silence. The presiding
officer of the pension committee shall decide whether testimony or the taking
of an oath may be declined. Against such decision an appeal may be taken
to the arbitration court within one week; the court shall decide finally.
A rticle 244.
P aragraph 1. Only fines o f not more than 300 marks [$71.40] may be imposed
upon witnesses or experts who—
Do not appear, or,
Decline to give testimony or to take oath without a statement of the reason,
or after the reason given has been legally declared to be untenable.
Par. 2. The presiding officer of the pension committee shall impose the fines.
On appeal the arbitration court shall decide finally.
A rticle 245.
P aragraph 1. Military persons who belong to the active service in the Army
or Navy, or to one of the colonial forces, shall on request be summoned as wit
nesses or experts by the military authorities.
Par. 2. I f they decline to give testimony or to take oath, then the military
court, on request, shall impose fines.
A rticle 246.
P aragraph 1. Witnesses and experts shall receive fees as in the taking of
testimony before regular courts in civfl controversies.
P ar . 2. The arbitration court shall decide finally on appeals against the
determination of the fees.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
A r t ic l e
45
247.
The provisions of article 243, paragraph 2, and article 244 shall be applicable
also for the procedure before the local court (A m ts g e ric h t) which has been
requested to act. In other respects, the provisions of the Code of Civil Pro
cedure shall be correspondingly applied to this, procedure.
A
r t ic l e
248.
P a r a g r a p h 1. The contents, and on request a copy, of the proceedings in the
taking of proof shall be communicated to the applicant and the entire proceed
ings shall be communicated to the Imperial Insurance Institute.
Par. 2. The presiding officer shall decide to what extent the medical cer
tificates and opinions are to be communicated to the applicant.
A
r t ic l e
249.
P a r a g r a p h 1. If the claim depends upon a status of family rights or heredi
tary rights, then the presiding officer may direct the parties affected to have the
status determined by the ordinary courts.
P a r . 2. He shall also specify up to what time the suit must be filed; the time
limit may upon application be extended.
A
r t ic l e
250.
Paragraph 1. The decision is to be accompanied by a statement of the
grounds therefor and is to be signed by the presiding officer. A copy of the
decision is to be given to the Imperial Insurance Institute and to the applicant.
The decision must also contain a statement that it becomes of legal effect if the
beneficiary does not file an appeal with the arbitration court within one month
after its delivery. For seamen who are in localises outside of Europe, article
328, paragraph 2, is applicable.
Par. 2. If a retirement or other pension is granted, then the decision must
contain a statement as to the amount, date of beginning, and manner of compu
tation of the benefits.
A r t i c l e 251.
With the exception of the case mentioned in article 240, the decision shall be
made after oral procedure; to this procedure there must be called in as asso
ciates, one insurance representative each from the employers and from the in
sured salaried employees.
A r t i c l e 252.
The presiding officer shall prepare the case, and may collect evidence before
the oral proceedings begin. The provisions of articles 241 to 249 are here cor
respondingly applicable.
A r t i c l e 253.
P a r a g r a p h 1. The presiding officer shall decide on the time of the proceed
ings and shall give notice of the same to the Imperial Insurance Institute and
to the applicant.
Par. 2. The presiding officer may summon witnesses and experts for the oral
proceedings and may issue other directions, and in particular require the per
sonal appearance of the applicant.
A r t ic l e
254.
The presiding officer shall specify the order in which insurance representatives
are to be called into the proceedings. The imperial chancellor may issue gen
eral directions in regard to this matter.
A
r t ic l e
255.
1. The oral proceedings shall be public.
Par. 2. Publicity of proceedings may be omitted for reasons of public welfare
or public morality; the decision must be announced in public.
P aragraph
46
B U LLETIN OF TH E BUREAU OF LABOR.
A
r t ic l e
256.
P a r a g r a p h 1. The Imperial Insurance Institute is entitled to send representa
tives to the oral procedure.
Par. 2. The applicant may himself appear or have himself represented.
P ar. 3. The representative of the Imperial Insurance Institute, as well as the
applicant or his representative are to be heard.
A
r t ic l e
257.
P a r a g r a p h 1. The pension committee may decline to allow the appearance of
agents and counsel who make a business of appearing in proceedings before
authorities for compensation.
P a r . 2. This shall not apply to attorneys and similar persons to whom the
appearance before a court is permitted (art. 157 of the Code of Civil Procedure).
A rticle 258.
P a r a g r a p h 1. The provisions of the law on the constitution of the courts
( G erich tsverfassu n g sg esetz) in regard to the maintenance of order in the ses
sions are here correspondingly applicable (arts. 176 to 182 and 184).
Par. 2. The arbitration court shall decide finally on appeals against penalties
imposed for acts of disorder.
A
r t ic l e
259.
P a r a g r a p h 1. If the pension committee holds that the matter is not made
sufficiently clear, then it may order the requisite proof. The committee may
turn over to the presiding officer the execution of this decision.
Par. 2. Articles 243 to 248 are applicable in regard to the production of evi
dence, while article 249 shall be correspondingly applicable as to a subsequent
order to have a legal status determined by the ordinary law procedure
A
r t ic l e
260.
P a r a g r a ph 1. The pension committee shall make its decision by majority vote.
Par. 2. I f in voting on the amount of the benefits, no majority is secured, then
the votes cast for the larger amount shall be added to those given for the next
smaller amount until a majority results.
A
r t ic l e
261.
P a r a g r a p h 1. If on the order of the presiding officer, the applicant has ap
peared in the oral procedure, then on demand his cash expenses and loss of
time shall be reimbursed to him; these may also be reimbursed if he has
appeared without an order and the pension committee considers his appearance
as having been necessary.
Par. 2. The arbitration court shall decide finally on appeals against the
decision which fixes this reimbursement or declines to allow it.
P a r . 3. If the applicant appears without an order, then this reimbursement
shall be considered as disallowed if the pension committee does not expressly
determine that his appearance was necessary. In such cases no appeal shall
be allowed.
A r t i c l e 262.
P a r a g r a p h 1 . The decision shall be announced publicly even if the public
were excluded from the proceedings.
P a r . 2. In other respects article 250 shall be applicable as regards the
decision.
A r t i c l e 263.
A record shall be kept of the oral proceedings.
A r t ic l e
264.
P a r a g r a p h 1. Errors in writing and in computation and similar obvious
inaccuracies which occur in the decision may at any time be corrected upon
application or upon the initiative of the officials.
GERMAN INSURANCE L A W FOR SALARIED EMPLOYEES.
47
P a r . 2. The presiding officer shall decide without oral procedure whether a
correction is to be made.
P a r . 3. If he makes a correction, then the correction shall be made upon the
original of the decision and upon the copies thereof. The party affected
may make an appeal to the arbitration court in regard to the correction; the
arbitration court shall decide finally.
Par. 4. A decision which declines to allow a correction may not be appealed.
A
r t ic l e
265.
P a r a g r a ph 1. If the decision omits one of the principal or subordinate claims
raised by a party either wholly or in part, then on application the decision
shall be later supplemented.
P a r . 2. In regard to such application, even if the case mentioned in article
240 is not present, the decision may be made without oral proceedings if the
matter relates to a subordinate claim.
Par. 3. A supplementary decision shall be noted upon the original of the
decision and upon the copies thereof.
A
r t ic l e
266.
P a r a g r a ph 1. If the application for retirement pension is finally disallowed
because an occupational disability was not proved, then the applicant may
repeat his claim not earlier than one year after the date when the opinion was
delivered; before that time, however, he may do it only if it is credibly certified
that in the meantime circumstances have occurred which afford this proof.
P a r . 2. If this certificate is not attached, then the presiding officer of the
pension committee shall return the application as being repeated at too early
a date. This decision may not be contested.
A r t i c l e 267.
The application for a determination of retirement pension or survivors’
pension may not be disallowed because occupational disability or death was
the result of an accident entitling to a pension under the imperial workmen’s
insurance system. The retirement pension and other pensions are to be paid in
full until the accident pension is granted.
A
r t ic l e
268.
P a r a g r a p h 1. The Imperial Insurance Institute may take steps to have the
accident pension determined and may also inaugurate the legal steps thereto.
The expiration of time limits which have lapsed without any fault of the
Institute shall not be effective against it; this shall not apply to time limits in
the procedure in so far as the Institute itself has prosecuted the case.
P a r . 2. The Imperial Insurance Institute may grant to the presiding officer
of the pension committee the authority to conduct such cases.
A
r t ic l e
269.
P ar a g r a ph 1. The provisions in regard to the determination of benefits shall
be correspondingly applicable if the retirement pension or widowers’ pension is
withdrawn (arts. 68 and 69), or if the house money or the pension has been
stopped on account of suspension or for other reasons (arts. 38 to 40, 72 and
73 to 78), or if they are to be reduced (art. 95).
P a r . 2. Articles 230 to 232 are here correspondingly applicable in regard to
the competency of the pension committee.
Par. 3. An oral procedure shall not take place if the matter relates to the
suspension of the pensions (arts. 73 to 78), their stopping (arts. 38 to 40, and
72) and their reduction (art. 95).
II. PROCEDURE BEFORE THE ARBITRATION COURT.
A
r t ic l e
270.
*
Against the decision of the pension committee or of its presiding officer, the
legal measure of an appeal to the arbitration court is permissible.
48
BU LLETIN OF TH E BUREAU OF LABOR.
A bticle 271.
Paragraph 1. If the appeal is delayed or is not admissible, then the presiding
officer may disallow it without oral proceeding.
Par. 2. Within one week after the delivery of the decision the applicant may
appeal against the decision to the arbitration court. The decision must refer
to this fact.
A rticle 272.
The appeal shall be decided by the arbitration court for the district of that
pension committee by which the contested decision Was delivered. The same
shall apply to the decision of the presiding officer of the pension committee.
A rticle 273.
The decision shall be delivered on the basis of oral proceedings; in addition
to the presiding officer or his substitute, there must be called in to the pro
ceedings two each of the insurance representatives of the employers and of the
insured salaried employees.
A rticle 274.
The provisions in regard to the procedure before the pension committee shall
be correspondingly applicable in regard to the procedure of the appeal in so
far as the following articles do not prescribe otherwise.
A rticle 275.
Paragraph 1. The associates shall be called into the proceedings in a sequence
determined in advance. The imperial chancellor shall specify the details in this
connection.
Par. 2. I f the presiding officer desires to vary the order of assignment for
special reasons, then he must note these reasons in the record.
A rticle 276.
Paragraph 1. The arbitration court is not to be considered as disqualified
to render a decision because in addition to the presiding officer only one each
of the associates from the employers and insured persons has appeared.
Par. 2. If three associates are present, then from the group containing two
persons, the younger person shall withdraw.
A rticle 277.
The appeal acts as a stay in the following cases:
1. If it is filed by the Insurance Institute, in so far as it relates to a sum
which must be paid subsequently for the time before the issuance of
the contested decision;
2. If it relates to a claim for reimbursement or return of payment.
A rticle 278.
Paragraph 1. If the arbitration court reverses the contested decision because
the procedure was lacking in important respects, then the court may return the
case to the lower body.
Par. 2. In such case the court may order the granting of a provisional benefit.
A rticle 279.
If it is determined that the judgment can not be made the subject of an
appeal (art. 282), then the presiding officer must make note of the fact that
against the decision no other legal steps are permissible, referring to the legal
provisions on this subject at the close of the decision.
A rticle 280.
If in a case in which a review is not permissible (art. 282), the arbitration
court wishes to depart from an officially published fundamental decision of the
GERMAN INSURANCE LA W FOR SALARIED EMPLOYEES,
49
superior arbitration court, then it must hand over the case to the superior
arbitration court together with a statement of its construction of the law. The
latter shall then decide in place of the arbitration court. The Imperial Insur
ance Institute and the applicant are to be informed that the case has been so
referred.
III. PROCEDURE BEFORE THE SUPERIOR ARBITRATION COURT.
A rticle 281.
From the judgments of the arbitration court, a review may be allowed.
A rticle 282.
A review is not allowable if the matter relates to the following:
1. The amount, date* of beginning and ending of the retirement pension or
annuity;
2. Survivors’ pensions;
3. Settlement or repayment (arts. 47, 60, and 62);
4. Cost of procedure.
A rticle 283.
If a review of a party which is otherwise permissible also relates to claims
for which no review is allowed, then the decision may be made on the latter
only if the permissible review asked for was either wholly or partly allowed.
A rticle 284.
The superior arbitration court shall decide in regard to the review.
A rticle 285.
Application for a review is to be made in writing; it must give the reasons
for the review. A judgment which is contested may also be changed for rea
sons other than those given in the application for a review.
A rticle 286.
An application for a review may only be based on the following:
1. Where the contested judgment rests upon a failure to apply the law,
or upon an incorrect application of the existing law or upon a violation
of the obvious content of the record.
2. Where the procedure was lacking in important respects.
A rticle 287.
If the contested judgment is incorrectly designated as being final (art. 279),
then an appeal is permissible; it must be filed within one year after the delivery
of the judgment.
A rticle 288.
The decision shall be made on the basis of oral proceedings in a public ses
sion ; in addition to the presiding officer or his substitute, two permanent mem
bers of the Imperial Insurance Office (R e ic h s v e rs ic h e ru n g s a m ts ) and two judi
cial officials as well as one insurance representative each of the employers and
the insured salaried employees shall be called in.
A rticle 289.
If a member of the superior arbitration court has been challenged because of
reasons which justify his exclusion or because prejudice is apprehended, then
the superior arbitration court shall decide on the application for disqualification.
The member disqualified may not participate in the decision. In the case of a
tie vote, the application shall be regarded as disallowed.
58966°— 13------ i
50
B U LLETIN OF TH E BUBEAU OF LABOR,
A rticle
290.
If the presiding officer agrees with the one making the report that the appeal
is not permissible or is made too late, then he may disallow it without oral pro
ceeding. If the appeal is disallowed as having been made too late then within
one week after the delivery of the decision the applicant may appeal from the
decision to the superior arbitration court; the decision must make reference to
this fact.
Article 291.
The provisions in regard to the procedure before the arbitration court shall
be correspondingly applicable to the procedure concerning reviews in so far as
articles 292 to 296 do not prescribe otherwise.
A
r t ic l e
292.
The imperial chancellor shall specify in which order the official members and
the insurance representatives shall be called into the proceedings.
A
r t ic l e
293.
Paragraph 1. If the contested decision is reversed, then the superior arbitra
tion court may itself either decide the case or return it to one of the lower
bodies. In such cases it may order the granting of a provisional benefit.
P ar . 2. The office to which the case is referred is bound by the legal decision
upon which the reversal o f the contested judgm ent is based.
A rticle 294.
Paragraph 1. The superior arbitration court shall publish those of its de
cisions which are of fundamental importance.
P ar . 2. The im perial chancellor shall specify the manner o f publication.
A rticle
295.
Paragraph 1. The decisions of the superior arbitration court shall be signed
by the presiding officer, by the member making the report, and by one other
member of the superior arbitration court.
P ar . 2. I f the presiding officer or member m aking the report is prevented
from signing, then another member o f the superior arbitration court m ust sign
for him .
A rticle 296.
The decision which rectifies a judgment (art. 264) shall be given out by the
presiding officer and those members who have signed the judgment; such de
cisions may not be contested.
IY. REOPENING OF THE PROCEDURE.
1. GROUNDS FOR CONTEST.
A rticle 297.
Paragraph 1. A procedure concluded by a valid judgment may be reopened—
1. If the judgment authority was not constituted according to regulations;
2. If a person had participated in the decision who was disqualified from
participation on legal grounds, unless this objection has been brought
forward without success either by means of a challenge or by the use
of legal means;
3. If a person had participated in the decision in spite of the fact that
such person had been challenged as prejudiced and the challenge was
declared to have been well founded;
4. If a party was not represented in the proceedings according to the pro
visions of the law, in so far as he has not either expressly or tacitly
approved of the conduct of the controversy.
P ar . 2. In the cases mentioned under N os. 1 and 3, a reopening o f the case is
not perm itted if the ground for contesting could have been made valid by legal
measures.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
A bticle
51
298.
The reopening is also permissible if—
1. A document on which the decision is based, was made out falsely or was
forged;
2. In swearing to testimony or expression of opinion, on which the decision
is based, the witness or expert has either willfully or negligently
violated the obligation imposed by the oath;
3. The representative of the party or the opponent or his representative
has secured the decision through an action subject to a public penalty;
4. A person had participated in the decision who had violated his official
obligations against the party in the proceedings, in so far as such
violation is subject to a public penalty;
5. A penal judgment on which the decision is based has been abrogated by
another judgment which has become legally effective;
6. A party has subsequently discovered or bas been placed in a position to
use documents which would have brought about a more favorable
decision.
A rticle 299.
The reopening is only permissible in the cases of article 298, Nos. 1 to 4, if—
1. A valid criminal sentence has been rendered on account of the penal act;
2. A judicial criminal procedure could not be instituted or concluded for
reasons other than absence of proof.
A rticle 300.
The reopening is in all the instances mentioned in article 298 only permissible
if the party without any fault of his own could not make effective the grounds
for contesting in the earlier procedure and particularly by the inauguration of
a legal remedy.
A rticle 301.
Together with the application for a reopening, the grounds for contesting
which relate to an older decision of the same or of the lower authorities may be
made valid if the contested decision is based on the older one.
2.
A
COMPETENCE.
r t ic l e
302.
Paragraph 1. That authority whose decision is contested shall decide upon
the application.
Par. 2. If several decisions are contested which have been issued by authori
ties of different rank, the decision shall rest with the authority of higher rank.
The arbitration court shall decide in the place of the superior arbitration court
if a judgment has been contested which was issued in a reviewing procedure on
the basis of article 298, Nos. 1, 2, 5 or 6.
3.
COURSE OP THE PROCEDURE.
A
r t ic l e
303.
Paragraph 1. The application must be filed within one month.
Par. 2. The time limit begins with the date on which the party learned of
the grounds for contesting but not before the decision has become legally
effective. After the expiration of 5 years from the date of validity, such ap
plication is not permissible.
Par. 3. The provisions of paragraph 2 shall not be applicable if the reopening
of the case is applied for on the ground of inadequate representation. The time
limit then begins from the date on which the decision was delivered to the party
or if the party was not himself able to prosecute his case then from the date
on which the decision was delivered to his legal representative.
A r t i c l e 304.
The reopening of the case may also be instituted by the officials on their own
motion.
52
B U LLETIN OP TH E BUREAU OF LABOR.
A rticle
305.
The provisions of article 329, paragraphs 2 and 3, in regard to the observance
of the time limit, shall also be correspondingly applicable for the time limits
mentioned in article 303 relating to forfeiture.
A rticle
306.
P a r a g r a ph 1. If the application is delayed or is not permissible, then the
presiding officer of the authority competent for making the decision may dis
allow it without oral proceedings by delivering a decision in which the grounds
therefor are specified. The presiding officer of the superior arbitration court
may take such action only if he concurs in the report of the member assigned to
the case.
P a r . 2. Within one week after the delivery of the decision, the applicant
may appeal to the competent authority against the decision. The decision must
refer to this point.
A rticle 307.
P ara g r a ph 1. If the application has been made within the proper time and is
permissible, then the principal matter in the case, in so far as the reasons for
contesting affect it, shall be tried anew.
Par. 2. In the new procedure, those provisions shall be applicable which are
controlling for that authority in which the new procedure has been opened.
A rticle
308.
Legal remedies are permissible in so far as they are allowable against the
decisions of the authorities which have to deal with the reopening.
FINAL PROVISION.
A rticle 309.
The reopening of the procedure may be regulated in a manner different from
that specified in the preceding provisions by an imperial decree with the consent
of the Federal Council.
Y. CONTESTING FINAL DECISIONS.
A rticle 310.
1. A new investigation may be applied for in opposition to a
decision of legal effect if one of the conditions mentioned in articles 297 and
298 is present.
P ar a g r a ph
Par. 2. The pension committee shall decide in regard to the application;
articles 299 to 301 and 303 to 309 are correspondingly applicable.
VI. COSTS OF THE PROCEDURE.
A rticle 311.
If a party either through willfulness, obstructive measures, or deception, has
caused costs in the procedure, then such costs may wholly or partly be imposed
upon him.
A rticle 312.
In other respects, no costs of procedure shall be imposed upon the parties
affected.
SECTION SEVEN.— PAYMENT OF THE BENEFITS.
I. PAYMENT THROUGH THE POST OFFICE DEPARTMENT.
A rticle 313.
P ar a g r a ph 1. Upon authorization of the pension committee, the Imperial
Insurance Institute shall make payments through the Post-Office Department,
and as a rule through that post office in whose district the payee resides at the
time of the application. The pension committee shall notify the payee of the
of payment.
Digitized office
for FRASER
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
53
Pab. 2. If th‘e payee changes his residence, he may apply to the pension com
mittee or to the post office of the former place of residence to have the pay
ments transferred to the post office of the new place of residence.
A
r t ic l e
314.
Every person who is entitled to keep a public seal is authorized to make out
the requisite certificates for payments and to certify them.
A
r t ic l e
315 .
The highest postal authorities may collect an advance payment from the
Imperial Insurance Institute. According to the choice of the Imperial Insur
ance Institute, this advance payment shall be transmitted quarterly or
monthly to the offices designated by the Post-Office Department and may not
exceed the amount which the Imperial Insurance Institute will probably have
to pay during the current fiscal year.
A
r t ic l e
3 16.
The compensation to be paid to the Post-Office Department shall be deter
mined by the Federal Council after a hearing of the Imperial Insurance In
stitute.
A rticle 3 1 7 .
The imperial chancellor may specify how the payments are to be made to
beneficiaries who customarily reside in a foreign country.
II. SETTLING OF THE POST-OFFICE ACCOUNTS.
A rticle 318.
The highest postal authorities shall report to the Imperial Insurance Insti
tute what the Post-Office Department has paid out upon the order of the pen
sion committees in the preceding fiscal year.
A rticle 319.
Within two weeks after the receipt of the communication the Imperial In
surance Institute must pay the amount from its available funds.
SECTION EIGHT.— OTHER PROVISIONS.
I. AUTHORITIES.
A
r t ic l e
320.
The highest administrative authority may transfer the rights and duties
which this law imposes upon it to other authorities.
A rticle 3 2 1.
P ar a g r a ph 1. The highest administrative authority shall specify the fol
lowing :
1. By which State authorities and by which other authorities the duties
shall be performed which this law imposes upon the higher and the
lower administrative authorities as well as upon local police authori
ties;
2. Which unions shall be considered as unions of communes; a single com
mune shall be considered as a union of communes in the meaning of
this law only in case the highest administrative authority shall so
specify.
Par. 2. These specifications shall be published in the Reichsanzeiger.
II. LEGAL ASSISTANCE.
A rticle 322.
P a r a g r a ph 1. The public authorities are obliged to comply with the requests
made in the execution of this law which come to them from the superior arbi
tration court, from the arbitration courts, from other public auhorities and from
54
B U LLETIN OF TH E BUREAU OF LABOR.
the official bodies of the Imperial Insurance Institute, and in particular to carry
out the legal decisions and, even though not requested, to supply to the official
bodies of the Imperial Insurance Institute all information which is of impor
tance for the carrying out of its business. The same obligation rests upon the
official bodies of the insurance carriers of the imperial workmen’s insurance
system.
Par. 2. If a court declines to grant a request for taking testimony, then the
State supreme court shall decide finally.
A rticle 323.
Per diem allowances, traveling expenses, fees for witnesses and experts, and
all other cash expenditures arising out of legal assistance shall be repaid by
the Imperial Insurance Institute as if they were incurred as its own adminis
trative costs.
III. TIME LIMITS.
A rticle 324.
Paragraph 1. I f the beginning of a time limit is based on an event or on a
date, then the time lim it shall begin with the day following the event or the
date.
Par. 2. If a time limit is extended, then the new time limit shall begin with
the expiration of the old one.
Article 325.
Paragraph 1. A time limit specified by days shall end with the expiration of
its last day, and a limit specified by weeks or months with the expiration of
that day of the last week or the last month which corresponds to the name or
numbered day on which the event or date falls.
Par. 2. If the corresponding day is lacking in the last month, then the time
lim it shall end with the month.
A rticle 326.
If the period of time of months or of years is not required to be consecutive,
then the month shall be computed as of 30 days and the year as of 365 days.
A rticle 327.
Paragraph 1. If the day set for the statement of intention or for a payment,
or for the expiration of a time limit falls upon a Sunday or upon a general
holiday which is recognized in the place of declaration or of payment by the
State, then the next following working-day shall take its places
Par. 2. This provision shall not be applicable for the duration of benefits to
which the Imperial Insurance Institute is obligated.
A rticle 328.
Paragraph 1. In so far as this law does not prescribe otherwise, legal steps
are to be inaugurated within one month after the delivery of the contested
decision.
Par. 2. In the case of seamen sojourning outside of Europe, this time limit
shall be specified by the office which has issued the contested decision; it must
amount to at least three months after the date of delivery.
Article 329.
Paragraph 1. Legal measures shall be inaugurated at that authority which
is to give the decision.
Par. 2. The time limit shall be considered as having been observed, if the
legal measures have been received in due time by another German authority
or by an official body of the Imperial Insurance Institute.
Par. 3. The papers relating to the legal measures must be delivered to the
competant body without delay.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
A rticle
55
330.
The legal measures shall act as a stay only in cases where the law so
prescribes.
A rticle 331.
Paragraph 1. I f an interested party, either by natural events or other un
avoidable accidents has been prevented from observing a legal time limit in
the procedure, then upon application he shall be reinstated to his former status.
Par. 2. Upon application such reinstatement shall also be granted if the
document which was received too late was mailed at least three days before
tile expiration of the time limit for delivery.
A rticle 332.
P a r a g r a p h 1. In the case mentioned in article 331, paragraph 1, application
for reinstatement must be made within a period whose duration shall be deter
mined by the duration of the time limit lapsed. The time limit begins with the
day on which the preventive cause is removed.
P a r . 2. In the cases mentioned in article 331, paragraph 2, the reinstatement
must be applied for within one month. The time limit begins with the day on
which the parties affected became aware that they had exceeded the time limit.
P a r . 3. After the expiration of two years from the end of the expired time
limit, the reinstatement to former rights may no longer be applied* for.
A rticle 333.
Paragraph 1. The application for reinstatement shall—
1. State the f^cts which form the basis for the reinstatement;
2. Designate the means by which these facts may be proved;
3. Make good the acts which have been omitted if such has not already been
done.
Par. 2. The application shall be made to that authority where the time limit
has been exceeded; article 329, paragraphs 2 and 3, are here correspondingly
applicable. The decision rests with the authority which has to decide in regard
to the action which has been made good.
A rticle
334.
Paragraph 1. The proceedings in regard to the application shall be combined
with that concerning the action which has been made good, though the applica
tion may first of all be discussed and decided alone.
Par. 2. For the decision as to whether the application is permissible and
the appeal therefrom, the same provisions shall be applicable as in the case of
an action later made good.
IV. NOTIFICATIONS.
A rticle 335.
Paragraph 1. Notifications which initiate a time limit may be made through
registered letter.
Par. 2. After two years from its making out, the post-office receipt justifies
the presumption that the delivery has been made within the regular time limit.
A rticle 336.
Paragraph 1. Persons not living in Germany must, upon demand, name an
authorized agent to receive such notification.
Par. 2. If his abode is unknown or if an authorized agent is not appointed
within the time limit specified, then posting the notification for one week in the
business offices of the authority or of the official body may be substituted for
the delivery; the time limit may not be shorter than one month.
56
BU LLETIN OF TH E BUREAU OF LABOR.
V. FEES AND STAMP TAXES.
A bticle
337.
Unless this law prescribes otherwise, all proceedings and documents which
are required according to this law for the determination of the benefits by the
competent authorities or which are required in order to determine the legal
relations between the Imperial Insurance Institute on the one side and the
employers and the insured persons or their survivors on the other side are
exempt from fees and stamp taxes.
A rticle
338.
The same shall be applicable for proceedings out of court and documents of
this kind as well as for such private authorizations and official certifications
which according to this law are requisite for proof or for evidence.
VI. PROHIBITIONS AND PENALTIES.
A rticle
339.
If the employers make entries in the reports or notices which they have to
make out according to the provisions of this law or according to the regula
tions of the Imperial Insurance Institute, the incorrectness of which they knew
or under the circumstances must have known, or if they neglect either wholly
or partly to make the prescribed entries, then the Imperial Insurance Institute
may impose upon them fines of not more than 500 marks [$119].
A rticle
340.
P a r a g r a p h 1. If the employers neglect to transmit the contributions at the
proper time for their employees subject to the insurance, or neglect to make
use of the proper stamps (arts. 185 and 187), then the Imperial Insurance Insti
tute may impose upon them fines of not more than 300 marks [$71.40]. Inde
pendently of the fine and of the collection of the arrears, the Imperial Insurance
Institute may impose upon a person so penalized the additional payment of one
to two times these arrears. The amount shall be collected in the same manner
as communal taxes.
Par. 2. I f the employer contests his obligation to make contributions, then
the obligation shall be determined according to article 210.
A rticle 341.
The following shall be punished with fines up to 300 marks [$71.40] or with
arrest, unless according to other provisions of law more severe penalties are
imposed:
1. Employers or their representatives who purposely deduct from the sala
ries of their employees higher contributions than this law permits;
2. Those persons who contrary to law withhold an insurance card from the
person entitled thereto.
A rticle
342.
1. Employers shall be punished with confinement in jail if they
intentionally fail to use for the insurance those shares of contributions which
they have deducted from the salaries of their employees or have received from
them.
P a r . 2. In addition, a fine up to 3,000 marks [$714] and the loss of civic
rights may be imposed.
P a r . 3. In the case of mitigating circumstances the fine alone may be im
posed..
A rticle 343.
P a r a g r a ph
In so far as this law imposes penalties upon employers, the following shall be
considered as such:
1. The members of the directorate, if the employer is a stock company, a
mutual insurance association, a registered cooperative society, a guild,
or other legal person.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
57
2. The business directors, if the employer is an association with lim ited
liability.
3. A ll partners personally liable in so far as they are not excluded from the
representation, if another type o f business corporation is the em ployer.
4. The legal representatives o f employers not legally competent to transact
business or partially so, as well as liquidators o f a business corpora
tion, a m utual insurance association, a registered cooperative society,
a guild, or any other legal person.
A rticle 344.
Paragraph 1. The employer m ay transfer the duties which this law imposes
upon him to the directors o f the establishm ent, the supervisory personnel, or to
other salaried employees o f his establishm ent.
Par. 2. I f such representatives act contrary to the provisions which impose
penalties upon em ployers, then the penalty shall apply to them . In addition
to them the employer is also liable to punishment—
1. I f the violation has occurred w ith his knowledge or,
2. I f in the selection and supervision o f his representatives, he has not
observed the care required cu stom arily; in such case no other penalty
m ay be imposed upon the employer than the fine.
Par. 3. The payment o f one up to two tim es the arrears o f contributions m ay
also be imposed upon the representative (art. 340). In addition the employer
is liable w ith him for this amount in case the employer is punished according to
paragraph 2.
A rticle 345.
Paragraph 1. The employers and their salaried employees as well as the
Im perial Insurance Institute are prohibited from restricting the insured per
sons in the acceptance or execution o f honorary offices in the insurance system
for salaried employees, or from injuring them because o f the acceptance or
because o f the nature o f their adm inistration o f such honorary offices. T h e
persons designated are further prohibited from excluding the insured person
from the provisions o f this law to his injury either by agreement or by work
ing regulations, either wholly or partly.
Par. 2. Provisions o f contracts which are contrary to the above are void.
A rticle 346.
Em ployers or their salaried employees who violate article 345, paragraph 1,
shall be punished with a fine o f not more than 300 m arks [$71.40] or w ith
arrest, unless according to other legal provisions more severe penalties are
provided.
A rticle 347.
Paragraph 1. W hoever makes prohibited entries upon insurance cards or
places special m arks upon them, m ay be punished by the pension com m ittee w ith
a fine o f not more than 20 m arks [$4.76].
Par. 2. The same penalty may be imposed upon the person who falsely fills
out the blank spaces (VordJruck) upon insurance cards, or who fraudulently
alters words or figures entered in filling out the blank spaces, or who knowingly
uses such cards.
Par. 3. An appeal against the decision o f the pension com m ittee may be made
to the Im perial Insurance Institute.
The latter shall decide finally.
A rticle 348.
Paragraph 1. W hoever m akes entries, m arks or falsifications w ith the inten
tion o f m aking the holder known to employers shall be punished with a fine o f
not m ore than 2,000 m arks [$476], or with confinement in ja il not to exceed
six months. In case o f m itigating circumstances the penalty m ay consist o f
arrest instead o f confinement in ja il.
Par. 2. A prosecution for falsification o f documents (articles 267 and 268 o f
the Im perial Penal Code) shall be instituted only against persons who have
made fa lse entries for the purpose o f securing a pecuniary benefit for them selves
or for others., or to inflict injury upon another.
58
BULLETIN OF THE BUREAU OF LABOR.
A rticle 349.
P aragraph 1. The persons named below, If they disclose without authority
what they have learned w hile perform ing their official duty, about diseases or
other invalidity o f insured persons, or the causes thereof, shall be punished by
fines not to exceed 1,500 m arks [$357] or by confinement in ja il fo r not more
than three m onths; prosecution shall be instituted only on application o f the
insured person or o f the supervisory au th ority; these persons a r e :
A member o f an adm inistrative body or an employee o f the Im perial Insur
ance In stitu te; a member or an employee o f an authority which accord
ing to this law is competent for the determ ination o f the benefits.
A representative or associate o f such an authority.
P ar . 2. Other persons for whom this law provides a benefit from the Im perial
Insurance Institute are considered as insured persons.
A rticle 350.
P aragraph 1. The persons designated in article 349, paragraph 1, shall be
punished w ith a fine o f not more than 1,500 m arks [$357] or w ith confine
ment in ja il if they disclose without authority business or trade secrets which
have become known to them in their official capacity.
P ar . 2. I f they do this in order to injure the employer or to procure for them
selves or other persons pecuniary advantages they shall be punished w ith im
prisonm ent. In addition to the imprisonment, the penalty m ay consist o f loss
o f civic rights and o f a fine o f not more than 3,000 m arks [$714].
Par. 3. In the case of paragraph 1, the prosecution shall be instituted only
upon application of the employer.
Article 351.
The persons designated in article 349, paragraph 1, shall be punished with
im prisonm ent if w ithout authority they make use o f business or trade secrets
in order to injure an employer or to procure for them selves or other persons a
pecuniary advantage. In addition to the imprisonment, the penalty m ay consist
o f loss o f civic rights and a fine o f not more than 3,000 m arks [$714] m ay be
imposed.
Article 352.
I f in the cases mentioned in article 350, paragraph 2, or in article 351, m iti
gating circum stances are present, then only a fine up to 3,000 m arks [$714]
shall be imposed.
Article 353.
In the case o f officials who are subject to the service regulations o f a State
or communal authority, the provisions in force for them take the place of
articles 349 to 352.
A rticle 354.
Penalties o f im prisonm ent for not less than three m onths and in addition
loss o f civic rights shall be imposed upon the one who m akes counterfeit stam ps
or alters stam ps w ith the purpose o f using them as genuine, or whoever with
the sam e purpose provides him self with counterfeit stam ps, or uses or offers
for sale or brings them into use.
Article 355.
The same penalty (a rt. 354) shall be imposed upon whoever knowingly makes
use o f stam ps which have already been used, or procures the same for use
again, or offers them for sale, or brings them into use. In case o f m itigating
circum stances a fine up to 300 m arks [$71.40] or arrest m ay be imposed.
Article 356.
In the cases mentioned in articles 354 and 355 steps m ust be taken fo r the
seizing o f the stam ps, even if they do not belong to the person condemned.
The same m ust also occur i f no specified person can be prosecuted or condemned.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
59
A rticle 357.
Paragraph 1. W hoever m anufactures without the w ritten order o f the Im
perial Insurance Institute or o f another authority the stam ps, seals, cuts, plates,
or other form s which can be used in the m anufacture o f stam ps, or im pressions
o f such form s, or procures them for him self, or hands the same over to persons
other than the Im perial Insurance Institute or the authorities, shall be punished
w ith a fine up to 150 m arks [$35.70] or w ith arrest.
Par. 2. In addition to the fine or arrest, the seizing of the stamps, seals, cuts,
plates, or other forms may be ordered, even if they do not belong to the person
condemned.
Article 358.
The arbitration court shall decide finally on appeals against penalty decisions
o f the Im perial Insurance Institute.
Article 359.
Paragraph 1. W ith the exception o f those imposed by the courts, fines shall
be turned into the treasury o f the Im perial Insurance Institute.
Par. 2. W ith the exception of those imposed by the courts, fines shall be
collected in the same manner as communal taxes.
Article 360.
Contraventions o f the penalty provisions o f this law for which the courts
are not competent expire by lim itation in one year, if not punishable with a
fine o f more than 300 m arks [$71.40], otherwise in five years. The period of
lim itation begins w ith the day on which the act w as committed. It is inter
rupted by any action directed against the violator by the bodies competent
to impose a penalty. W ith the interruption begins a new period o f lim itation ;
it ends at the latest with the expiration o f 10 years from the day on which the
contravention took place.
A rticle 361.
Punishments imposed finally and not decreed by the courts expire by lim itation
in two years. The period o f lim itation begins w ith the day on which the de
cision became final. It is interrupted by any action directed to the execution
o f the punishment by the bodies charged with the execution. W ith the inter
ruption begins a new period o f lim itation ; it ends at the latest with the expira
tion o f four years from the day on which the decision became final.
V II. FO R E IG N L E G ISL A T IO N .
A rticle 362.
Paragraph 1. So fa r as other countries have put into operation a system o f
relief corresponding to the insurance system for salaried employees, the im perial
chancellor, with the approval o f the Federal Council and with due regard to
reciprocity, m ay make agreements as to what extent the relief shall be regulated
according to th is law or the relief provisions o f the other country for establish
ments overlapping from the territory o f one country into that o f another, as
w ell as for insured persons tem porarily occupied in the territory o f the other
country.
Par. 2. Likewise if there is a reciprocal consideration, the insurance of
citizens o f a foreign country m ay be regulated otherwise than according to the
provisions o f this law , and the operation o f the relief o f the one country be
facilitated in the territory o f the other. In these agreements the obligation o f
the employers to pay contributions according to th is law must not be reduced
or done away w ith. The Reichstag must be notified o f these agreements.
A rticle 363.
W ith the approval o f the Federal Council, the im perial chancellor may decree
that a right to reimbursement m ay be exercised against subjects o f a foreign
State or their legal successors.
60
BULLETIN OF THE BUREAU OF LABOR.
SECTION NINE.—FINAL AND TRANSITORY PROVISIONS.
I. COST O F T H E F IR S T E S T A B L ISH M E N T .
A rticle 364.
The cost arising from the first establishm ent o f the Im perial Insurance In sti
tute shall be advanced from the Im perial Treasury. This shall be returned
from the insurance contributions which first come in.
II. P R IV A T E P E N SIO N IN S T IT U T IO N S .
1. SUPPLEMENTARY FUNDS.
A rticle 365.
Paragraph 1. Factory funds, establishm ent funds, house funds, seamen’s
funds, and sim ilar funds, for one or several undertakings m ay include the
retirem ent and survivors’ pensions o f this law in the invalidity, old age or sur
vivors’ relief which they grant to their members insured according to th is law .
It is required in th is case that the funds shall be created only for the persons
designated in article 1, paragraph 1, as also that the share o f the assets o f the
funds for the insurance system for salaried employees shall be separated, and
be separately adm inistered, and furtherm ore that the funds shall pay the con
tributions from their own resources and that the em ployers shall pay supple
m entary am ounts to the funds which shall be equal to at least one-half o f the
contributions to be paid according to this law . The benefits specified in the
constitution, if they are to be covered in participation w ith the Im perial Insur
ance Institute, shall be determined according to the procedure o f this la w ; in
case o f controversy the decision w ill be m ade by the sam e procedure. The
Im perial Insurance Institute shall transfer the amounts so determined, cur
rently to the funds affected, in so fa r as th*ey are borne by it according to
articles 55 to 58. On application, paym ents shall be made through the PostOffice Departm ent directly to the beneficiary. The other benefits o f th is law
shall be granted directly to the insured members o f the fund.
P ar . 2. I f several funds are involved because they have paid contributions for
the beneficiary to the Im perial Insurance Institute, then the Im perial Insur
ance Institute shall indicate to each individual fund w hat amount is placed to
its credit, corresponding to the contributions paid in for the benefits o f this
law . In these cases, the total amount o f the benefits o f the im perial law shall
be paid to the beneficiary through the post office upon order o f the Im perial
Insurance Institute.
A rticle. 366.
P aragraph 1. I f w ithin the first 10 years after th is law comes into effect, a
disability of the kind described in this law , occurs to members o f the funds des
ignated in article 365, and if the funds according to their constitution m ust
provide benefits in which the Im perial Insurance Institute does not participate,
then the Im perial Insurance Institute shall m ake a single supplementary pay
ment (Zuschuss) for defraying the benefits o f the fund equal in amount to the
net contributions plus the computable interest and compound interest.
Par. 2. The superior arbitration court shall decide controversies in regard to
the supplementary payment.
A rticle 367.
P aragraph 1. The funds designated in article 365 are entitled to transfer to
the Im perial Insurance Institute the payment o f the benefits specified in their
constitution, which they have granted before this law comes into force, by pay
ing in the amount o f capital necessary to cover them.
Par. 2. B y paying the corresponding premium reserve to the Im perial Insur
ance Institute, they can reduce the w aiting term o f their members or transfer
a ll the claim s to the Institute.
Par. 3. The provisions of this law in regard to procedure shall be applicable
as regards the determination of the benefits the payment o f‘ which has been
turned over, and as regards the decision of controversies in this connection.
GEBMAN INSTJBANCE LAW FOB SAT.ARTED EMPLOYEES.
61
A rticle 368.
Paragraph 1. The Federal Council m ay specify the details fo r the payment
o f contributions from the m eans o f the fund (art. 3 6 5 ).
Par. 2. A fter a hearing o f the Im perial Insurance Institute, the Federal
Council shall specify the principles for the computation o f the supplem entary
payment (a rt. 3 6 6 ), as w ell as for the capital sum necessary to cover the
benefits, and fo r the premium reserve (art. 3 6 7 ).
A rticle 369.
Paragraph 1. In order to carry out the provisions o f articles 365 to 367, the
constitutions o f the funds m ust be am ended; the amendment m ust have the
approval o f the competent authority. The authority can itse lf undertake the
amendment w ith the force o f law if the fund declines to do so on application
to this effect from the employers affected, or from a m ajority o f the members.
Par. 2. In the case mentioned in paragraph 1, sentence 2, the Federal Council
shall specify the procedure before the Im perial Office for the Supervision of
Private Insurance.
A rticle 370.
Paragraph 1. A rticles 365 to 369 are to be applied correspondingly to w elfare
institutions and to such insurance institutions which have been created for the
persons designated in article 1, paragraph 1.
Par. 2. Institutions which are adm inistered by unions o f communes m ay also
be extended to include other persons.
A rticle 371.
Paragraph 1. The provisions o f articles 93 and 94 relating to transfer, assign
ment, attachm ent and deduction o f insurance claim s shall be correspondingly
applicable fo r claim s against supplementary funds. They are not applicable
in so fa r as the benefits o f the supplementary fund exceed the benefits o f the
im perial law .
Par. 2. The highest adm inistrative authority shall specify w hat authority is
competent for the approval in accordance w ith article 93, paragraph 2.
2. SUBSTITUTE FUNDS.
A rticle 372.
Paragraph 1. On application the Federal Council shall specify that insur
ance institutions o f the kind designated in articles 365 and 370 m ay be adm itted
as substitute funds.
Par. 2. The insurance institutions m ust have been in existence before the
5th o f December, 1911, and m ust be capable o f suing and being sued at the
tim e o f m aking the application. The application m ust be made before the 1st o f
January, 1913, to the Federal Council by the directorate o f the insurance insti
tution or by the m ajority o f the salaried employees insured in it.
Par. 3. In order to guarantee the payment o f the contributions under the
im perial law s in case the fund is not adm itted, the insurance institution m ust
deposit w ith the Im perial Insurance Institute a guaranty to be specified by the
Federal Council after a hearing o f the Im perial Insurance Institute.
P ar . 4. I f the application for adm ission is refused, then the contributions in
arrears subsequent to the tim e that the law came into force m ust be paid up,
inclusive o f 3$ per cent interest and compound interest. The superior arbitra
tion court shall decide in case o f controversy in regard to the amount to be
paid subsequently.
A rticle 373.
Paragraph 1. Participation in an adm itted substitute fund shall be considered
as equal to insurance in the Im perial Insurance Institute. The same shall
apply until the procedure concerning the adm ission is completed.
Par. 2. The substitute funds m ust comply with the provisions o f articles 374 to
378 and article 172, paragraph 2.
62
BULLETIN OF THE BUREAU OF LABOR.
A rticle 374.
Paragraph 1. A ll persons subject to insurance m ust belong to the insurance
institutions which have been created for the establishm ents in which they are
employed unless they are exem pt from payment o f contributions according to
article 390.
Par. 2. The provisions o f paragraph 1 w ill be regarded as having been com
plied w ith, if in any one establishm ent several funds are present and each
salaried employee subject to the insurance belongs to at least one o f these
funds.
Par. 3. In the case o f funds which have been created fo r several establish
m ents, the joining o f an establishm ent, which on December 5, 1911, w as not
yet under contractual obligation to the fund to insure in it the m ajority or a
specified group o f its employees, does not exem pt the employees o f this estab
lishm ent from the obligation to insure in the Im perial Insurance Institute.
A rticle 375.
Paragraph 1. The benefits o f the fund m ust be a t least equal in value to the
benefits o f the im perial law and m ust be guaranteed in th is amount. The
benefits fo r the purpose o f m edical treatm ent shall be considered as o f equal
value if in the first three years after this law comes into force at least 5 m arks
($1.19) per member o f the insured salaried em ployees has been expended or
has been accum ulated. In the years follow ing the average amount expended by
the Im perial Insurance In stitu te per capita o f the insured persons as given in the
last published actuarial balance (a rt. 105) shall be used as the rate. The
supervisory authorities competent fo r the substitute funds shall supervise the
carrying out o f this provision.
P ar . 2. The guaranty o f the benefits can also be proved by reinsurance o f the
benefits obligatory to these funds according to paragraph 1 in a reinsurance
federation (m utual insurance association) which funds o f the kind designated
in article 365 have form ed, and which has been recognized by the im perial
chancellor as solven t; this recognition is to be made dependent on the fa ct that
through the reinsurance at the same tim e the claim o f the Im perial Insurance
Institute for the transfer o f the capital sum necessary to cover the benefits
(a rt. 384) has also been guaranteed.
A r t ic l e 376.
Paragraph 1. I f the adm ission as a substitute fund is withdrawn or if the
substitute fund is dissolved, then the obligation fo r paym ent o f claim s under
the im perial law shall be transferred to the Im perial Insurance Institute. The
premium reserves are to be transferred to the Im perial Insurance Institute
from the assets o f the substitute fund in an amount which corresponds to the
obligation. A rticle 368, paragraph 2, is here correspondingly applicable.
Par. 2. The superior arbitration court shall decide in case of controversy.
A rticle 377.
The contributions o f the employers to the funds m ust be a t least equal to
the em ployers’ contributions under the im perial law s, and in so fa r as the con
tributions o f the insured persons are higher, they m ust equal the latter. The
special expenditures m ade by the em ployers are to be computed equally against
the contributions o f the insured persons and the em ployers.
A rticle 378.
Paragraph 1. In the adm inistration o f the funds and in the determ ination o f
the benefits o f the fund, the insured persons m ust be granted a participation
corresponding to the provisions o f this law . The elections m ust be secret.
Par. 2. A s against the determ ination o f the benefits o f the fund, an appeal to
the arbitration court w ithin the tim e lim its specified in article 328 is perm issible
and as against the decision o f the court in the cases specified in this law , an ap
peal to the superor arbitration court is also perm issible. The provisions o f this
law shall be correspondingly applicable in regard to the procedure.
Par. 3. The funds m ust pay a lum p sum specified by the Federal Council,
after a hearing o f the Im perial Insurance Institute, tow ard the cost o f the arbi
tration courts and the superior arbitration cou rt
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
63
Article 379.
A rticle 371 is here correspondingly applicable.
Article 380.
In the computation o f the w aiting term, o f the retirement pension and other
pensions the contributory tim e accumulated in the substitute funds and in the
Im perial Insurance Institute after this law comes into force, shall be included
in the claim under the im perial law s.
Article 381.
Paragraph 1. A t least one-fourth o f the assets o f the fund in so fa r as they
are intended for the insurance system for salaried employees m ust be invested
in bonds o f the Em pire or o f the Federal States. The competent supervisory
authority shall supervise the carrying out o f this provision.
P ar . 2. A s long as the funds have not invested one-fourth o f their assets
under the provision in paragraph 1, they m ust each year invest not less than
one-third o f the increase o f their assets in such bonds.
A rticle 382.
Paragraph 1. I f after this law has come into force, the insured person w as
insured in several recognized substitute funds or in the Im perial Insurance Insti
tute and in one or several substitute funds, then the Im perial Insurance In
stitute is obligated to pay the benefits o f the im perial law s to the beneficiary.
These benefits shall be determined and authorized according to the provisions
o f th is law by the competent pension com m ittee. The substitute funds affected
are to be called into the procedure according to articles 253 and 2 5 6 ; in addition
each one o f them is entitled to inaugurate legal m easures. The substitute funds
affected m ust transfer to the Im perial Insurance Institute, according to the
provisions o f articles 383 to 385, the benefits which have been determ ined and
which are one o f their charges.
Par. 2. The benefits o f the substitute funds as specified in their constitutions
shall be reduced by the amount o f the benefits to be covered by them under
im perial law .
A rticle 383.
W henever a member leaves a substitute fund, th at fund m ust within one
month a fter his leaving transm it a certificate to that effect to the Im perial
Insurance Institute, which shall give inform ation concerning the duration o f
membership since th is law came into force as w ell as concerning the salaried
classes in which the member would have been rated during this membership
in the case o f insurance in the Im perial Insurance Institute. A sim ilar certifi
cate is to be transm itted in case a member becomes disabled or dies who has
been insured in several substitute funds or in the Im perial Insurance Institute
and in one or several substitute funds.
Article 384.
Paragraph 1. The capital sum for covering the benefits according to the
im perial law s which are a charge against the substitute funds according to
article 382, paragraph 1, m ust be transferred by them to the Im perial Insurance
Institute w ithin two weeks after they have received the request therefor. The
Im perial Insurance In stitu te m ay extend th is period by charging interest for
the delay.
P ar. 2. The superior arbitration court shall decide as to the amount o f the
capital sum for covering the benefits in case o f controversy.
Par. 3. The capital sum for covering the benefits shall be collected in the
same manner as communal taxes.
Article 385.
The Federal Council, after a hearing o f the Im perial Insurance Institute,
shall specify the form and contents o f the certificate (a rt. 383) as well as the
principles for the computation o f the capital sum for covering the benefits
(a rt. 3 8 4 ).
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BULLETIN OF THE BUREAU OF LABOR.
Article 386.
Paragraph 1. I f the certificate (a rt. 383) is not transm itted at the proper
tim e to the Im perial Insurance Institute, then the Im perial Insurance Institute
m ay impose a fine on the delinquent bodies o f the substitute funds up to 20
m arks ($ 4 .7 6 ).
Par. 2. On appeal, the imperial chancellor shall decide finally.
Par. 3. The fines shall be collected in the same manner as communal taxes.
III.
P U B LIC LE G A L P E N SIO N FU N D S.
Article 387.
Paragraph 1. Invalidity relief, old age relief, and survivors’ relief which
m iners’ associations or m iners’ funds grant to their members insured under
the provisions o f article 1, paragraph 1, o f this law m ay be reduced by the
amount o f the retirement pension and survivors’ pensions as granted by this
law . In th is case the contributions for the insurance under im perial law s are
to be paid from the m eans o f the m iners’ association or the m iners’ fu n d ; the
em ployers’ contribution m ust be equal to at least one-half o f the contribution
to be paid according to this law . The assets are to be accounted for separately
in so fa r as they are intended for members insured according to article 1, para
graph 1, o f th is law , and likew ise the other assets are to be sim ilarly accounted
fo r ; in particular the contributions are to be determined separately.
Par. 2. The benefits may also be reduced to a part of the amount specified
in paragraph 1. In this case only a corresponding part of the contribution for
insurance under the imperial laws is to be paid from the means of the miners’
association or of the miners’ fund; the employer’s contribution must be equal
to at least one-half of the contributions paid from the means of the miners’
association or the miners’ fund.
Par. 3. The reduction of the benefits must take place at least in the same
proportion as the benefits of the members who are not insured according to
article 1, paragraph 1, of this law, and are reduced according to articles 1321
and 1322 of the Imperial Workmen’s Insurance Code.
Par. 4. The benefits which the miners’ association or the miners’ fund ac
cording to their constitution have granted before a decision of a competent
official body or before this provision comes into force, may not be reduced.
Par. 5. The requisite regulations are to be brought about by amendments to
the constitution. I f a decision as to the amendment o f the constitution is not
reached, then the highest adm inistrative authority, upon the application o f the
m ajority o f one o f the two groups in the body which decides as to the amend
ment o f the constitution, m ay specify whether and to what extent the benefits
are to be reduced according to paragraphs 1 to 4. The m ajority o f the mem
bers insured according to article 1, paragraph 1, o f this law are also authorized
to make such application.
Par. 6. The Federal Council shall specify the details in regard to the payment
o f the contributions from the means o f the m iners’ association or m iners’ fund.
Par. 7. A rticle 365, paragraph 1, sentences 3 to 6, and paragraph 2, and article
366 and article 368, paragraph 2, are here correspondingly applicable.
Article 388.
Paragraph. 1. On application o f the directorate, the Federal Council shall de
cide whether the m iners’ associations or the m iners’ funds or federations o f
such bodies are to be adm itted as substitute funds, if they comply with articles
375 and 377. The Federal Council m ay also specify the same upon application
o f the m ajority o f the members insured according to article 1, paragraph 1, of
this law . In this case the directorate is to be given a hearing.
Par. 2. The guaranty o f the benefits o f the fund (a rt. 375, par. 2 ) can also
be proved through a guaranty from a reinsurance federation o f m iners’ asso
ciations or m iners’ funds or federations of such bodies, form ed according to
the law o f the State.
Par. 3. A rticle 373, paragraph 1, and articles 380 to 386 are here correspond
ingly applicable.
GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES,
65
A rticle 389.
Paragraph 1. Articles 365 to 377, 378, paragraph 1, and articles 379 to 386
are correspondingly applicable to other public legal pension institutions and fo r
such funds which provide invalidity, old age and survivors’ relief for which the
obligation to make contributions exists according to local ordinance.
Par. 2. In addition, communes, unions o f communes, and other public legal
bodies are authorized to deduct from the retirement pensions or survivors’
pensions which they grant, the benefits o f th is law corresponding to the dura
tion and the amount o f their contributory paym ents.
IY . IN SU R A N C E
CO N TR ACTS
W IT H
L IF E
IN SU R A N C E
CO M PAN IES.
A rticle 390.
P a r a g r a p h 1. Those salaried persons fo r whom previous to December 5 ,1 9 1 1 ,
an insurance contract has been made w ith a public or private life insurance
undertaking (a rt. 1 o f the law on private insurance undertakings o f M ay 12,
1901, Reichs-Gesetzblatt, p. 139) m ay on their application be exempted from
payment o f the contribution, if the annual amount o f the contributions for such
insurance a t the tim e this law comes into force is at least equal to the con
tributions which they would have had to pay according to th is law in propor
tion to their salaried receipts a t the tim e o f the application.
P ar . 2. The same shall apply to salaried persons who a t the tim e they took
up employment subject to the insurance had passed their thirtieth year o f life
and for a t least three years have been insured in a manner corresponding to
that mentioned in the first paragraph.
A rticle 391.
Paragraph 1. The application fo r exemption from payment o f contributions
is to be noted in the first application card (art. 1 8 8 ). The insurance policy
(certificate o f acceptance and the lik e) is to be produced a t the tim e o f the
application. The exemption is to be certified in the application and insurance
cards.
Par. 2. Controversies in regard to the exem ption shall be decided according to
article 210.
Article 392.
Paragraph 1. In the cases mentioned in article 390, the employer is required
to transm it to the Im perial Insurance Institute the share o f the contributions
due from him according to th is la w ; for this, one-half o f the benefits o f this
law shall be granted to the insured person.
Par. 2. I f the employer has paid a supplementary amount to the contributions
fo r the insurance o f his salaried employees (art. 3 9 0 ), then he m ay reduce the
amount o f this supplementary sum by the amount o f the contributions which
he has to pay to the Im perial Insurance Institute.
P ar . 3. On the application o f the insured person, the Im perial Insurance
Institute shall continue to pay to the life insurance company out o f the em
ployers’ contributions (par. 1 .) the amounts deducted from the supplementary
sum in the follow ing cases:
1. I f the insurance still amounts to a sum corresponding to that specified
in article 3 9 0 ;
2. I f the insurance policy is deposited;
3. I f, to guarantee a claim to retirement pension and survivors’ pensions,
the claim arising out o f the insurance to that part which corresponds
to the reduced amount o f the employer’s supplementary payment under
the im perial law s, is assigned legally to the Im perial Insurance
Institute.
P ar . 4. The Federal Council shall specify the details for carrying out these
provisions. A fter a hearing o f the Im perial Insurance Institute the Council
shall determ ine the compensation which shall be paid by the life insurance com
panies for the paym ent o f the contributions.
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BULLETIN OF THE BUBEAU OF LABOR.
Article 393.
I f the insurance (a rt. 390) before the occurrence o f the death o f the salaried
person is suspended by expiration, by lapsing, or through other reasons, then
the exemption from payment o f the contributions ceases. The life insurance
companies m ust notify the Im perial Institute ( Reichsanstalt) o f the cancella
tion o f the insurance contracts, if they have been notified o f the exem ption o f
the salaried person from the payment o f contributions. Contraventions shall be
punished by the supervisory officials w ith a fine o f not m ore than 100 m arks
[$23.80].
V . V O L U N T A R Y IN SU R A N C E .
A rticle 394.
Paragraph 1. D uring the first year after this law comes into force, the Im pe
rial Insurance Institute m ust, upon application, grant to the salaried persons
w ith annual earnings o f 5,000 to 10,000 m arks [$1,190 to $2,380] perm ission to
insure them selves according to the provisions o f this law in regard to voluntary
insurance, if they deliver proof that during the four calendar years preceding
the coming into force o f this law , they have carried on an employment subject
to insurance according to the provisions o f this law without considering their
earnings and that they have carried on such occupation for at least 30 calendar
months.
Par. 2. The same right shall be granted to persons who have regularly em
ployed in their establishm ents not more than three persons subject to the insur
ance under the presumption that they have carried on an occupation correspond
ing to the provisions o f article 1 for at least 30 calendar months.
Par. 3. The periods o f tim e designated in article 51 are to be considered as
equivalent to an employment subject to the insurance.
V I. R E D U C T IO N O F T H E W A IT IN G TER M .
A rticle 395.
During the first three years after this law comes into force the Im perial In
surance Institute after a previous m edical exam ination m ay perm it individual
salaried employees to reduce the w aiting term necessary for receiving the
benefits o f this law by the payment of the corresponding premium reserve.
A rticle 368, paragraph 2, is here correspondingly applicable.
A rticle 396.
Paragraph 1. D uring the first 10 years after this law comes into force the
accum ulation o f 60 contributory m onths on the basis o f the insurance obliga
tion shall be regarded as sufficiently complying w ith the w aiting term for sur
vivors’ pensions (a rt. 48, No. 2 ).
Par. 2. The widows’ or widowers’ pensions shall be computed according to a
retirement pension which amounts to one-fourth o f the value o f the contribu
tions made in the first 60 contributory months.
A rticle 397.
Salaried employees who at the tim e this law comes into force have already
completed their fifty-fifth year, m ay upon their application be exempted from
the insurance obligation, if the reduction o f the w aiting term is not granted
them or is im possible for other reasons.
A rticle 398.
I f the risk case fo r which the insurance is carried occurs within the first 15
years after this law comes into force, and no claim to the benefits can be made
according to this law , then in the case o f the death o f the insured person the
widow or widower, or in case such do not exist, the orphan children under 18
years o f age shall have a claim to the repaym ent o f one-half o f the contribu
tions paid in fo r the deceased person. In case o f voluntary insurance, three-
• GERMAN INSURANCE LAW FOR SALARIED EMPLOYEES.
67
fourths o f the contributions paid in by the person voluntarily insured shall be
repaid. The claim lapses if it is not made within one year after the death o f
the insured person.
V II. D A T E OF LEG AL E FFE C T.
A rticle 399.
Paragraph 1. The provisions o f this law which relate to the arrangem ents
necessary for carrying the system o f insurance for salaried employees into
effect shall come into force on the day of the publication o f this law .
Par. 2. In other respects the tim e on which the law comes into force either
w holly or partly throughout the Em pire shall be specified by im perial decree
w ith the approval o f the Federal Council.
@FedFRASER