The German Pension Insurance has now clarified that this is false. The rumors are apparently linked to the new EU Payment Services Directive (PSD3), which takes effect in October and aims to make fraud more difficult.
The German Pension Insurance (Deutsche Rentenversicherung) is warning against false reports on internet portals and social media about allegedly suspended pension payments. The news currently circulating claims that pension payments will not be made in October because a new EU directive for payment services is being introduced. “This claim is false!” the Pension Insurance agency clarified.
The rumors are based on the new EU Payment Services Directive (PSD3) that will take effect in October to make fraud more difficult. Under the directive, financial institutions must verify that a recipient’s IBAN account number matches the name on file exactly.
However, companies or authorities can decide whether to perform an IBAN-name check for bulk transfers. Pension recipients will not be affected by this check because “the German Pension Insurance, as part of the designated opt-out procedure, has decided to waive the IBAN-name check for pension payments,” the agency explained.
Therefore, starting in October, pensions will be transferred as usual, even if there are minor discrepancies in the name.
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