Adjustment Allowance for Employees in Lignite Mining and Stone/Lignite Plants

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Who is funded?

The Adjustment Allowance is aimed at older employees in the German lignite and hard coal industries who are affected by the shutdown measures of the Coal-Fired Power Generation Termination Act (KVBG). The goal is to facilitate the transition to retirement and mitigate social hardship.

What is funded?

This funding program focuses on financial support for individuals who lose their jobs due to the coal phase-out, rather than on financing projects or development initiatives. It serves as a bridging measure until retirement and provides financial security in old age.

Type and Scope of Funding

Support is provided in the form of a grant, the amount of which is based on the applicant's pension entitlements. The Adjustment Allowance can be granted for a maximum of five years and also includes subsidies for health insurance contributions and compensatory payments for pension reductions.

Conditions and Requirements

To receive the Adjustment Allowance, specific prerequisites regarding job loss, duration of employment, age, and timing of dismissal must be met. Companies must have the coal phase-out measure confirmed.

Application Procedure

The application process begins with a confirmation from the Federal Ministry for Economic Affairs and Climate Action for the affected company, followed by a preliminary inquiry from the employee to the Federal Office for Economic Affairs and Export Control. After positive review by the BAFA and the German Pension Insurance Knappschaft-Bahn-See, the actual application can be submitted.

Legal Basis

The Adjustment Allowance was introduced by the Coal-Fired Power Generation Termination Act and is based on specific guidelines that regulate the granting and details of the benefit.