Compensation for National Socialist Injustice. Indemnification Provisions

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1 Compensation for National Socialist Injustice Indemnification Provisions

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3 Compensation for National Socialist Injustice Indemnification Provisions November 2012

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5 Compensation for National Socialist injustice Indemnification Provisions Page 3 Contents I. Development of provisions governing compensation and the consequences of war in Germany Page Beginnings of compensation under occupation law Page Restitution Page Luxembourg Agreement, Hague Protocols and Settlement Convention.. Page Additional Federal Compensation Act (1953) and Federal Compensation Act (1956) Page Implementing regulations to the Federal Compensation Act Page Final Federal Compensation Act (1965) Page General Act Regulating Compensation for War-Induced Losses Page First comprehensive agreements with European states Page German government directives, Article 2 Agreement Page Arrangements with Eastern European states Page Central and Eastern European Fund (JCC) Page Compensation for forced labourers and other victims of National Socialism Foundation for Remembrance, Responsibility and the Future Page Ghetto Work Recognition Directive Page Washington Conference on Holocaust-Era Assets Page 1 II. Provisions based on the Federal Compensation Act Page Federal Compensation Act Page Extra-legal provisions for Jewish victims (Article 2 Agreement) Page Fund for those not of the Jewish faith who were persecuted as Jews under the National Socialist regime Page Compensation for non-jewish victims Page 17

6 III. Legislation for the new Länder Page Compensation Pension Act Page Extra-legal regulations based on the Compensation Pension Act Page Property law regulations in the territory of the former GDR Page 21 IV. Compensation under the General Act Regulating Compensation for War-Induced Losses Page General Act Regulating Compensation for War-Induced Losses of 5 November Page Government directives on hardship compensation to victims of National Socialist injustice under the General Act Regulating Compensation for War-Induced Losses Page Payments to victims of the National Socialist military judiciary Page Further information Page 27 Annexes Address List of law mentioned Page 28 Page 38 Page 40

7 Compensation for National Socialist injustice Page 5 I. Development of provisions governing compensation and the consequences of war in Germany 1.1 Beginnings of compensation under occupation law Almost immediately after the end of the Second World War, it became clear that compensation needed to be provided for the wrongs committed by the National Socialist regime. Those who had suffered oppression due to their political opposition to National Socialism or on the grounds of race, religion or ideology were particularly affected. Legislation was therefore drawn up in 1945 by the occupying powers and the municipalities. This led to a wide range of different measures, some of them compensatory, others more welfare-oriented in nature. The creation of the Länder (states) meant that larger administrative units were formed in Germany, and uniform regional compensation provisions were introduced too. Even then, however, it was difficult to keep track of the many different compensation provisions, both in terms of content and in terms of structure. The first step in standardising this area of law was to draw a line between restitution and compensation. 1.2 Restitution In 1947 and 1949, the three Western powers passed restitution acts for their occupation zones and for West Berlin governing restitution of and compensation for property unjustly confiscated between 1933 and 1945 as a result of racial, religious or political persecution. Following the establishment of the Federal Republic of Germany, restitution claims against the German Reich and other German entities involved in such confiscation were governed by the Federal Restitution Act of 19 July 1957 (Federal Law Gazette I, p. 734). Following German unification, provisions that were analogous to those in the restitution acts were adopted for the new Länder in the Act Regulating Open Property Matters (which entered into force together with the Unification Treaty) and the Victims of Nazi Persecution Compensation Act (Article 3 of the Compensation and Corrective Payments Act). The restitution process was concluded a long time ago. The application deadlines have passed and the administrative procedures have ceased to operate.

8 Page 6 Development of provisions governing compensation and the consequences of war in Germany Compensation provisions in the occupation zones As far as compensation law governing personal injury cases and damage to property not covered by restitution is concerned, Land laws were adopted in the American occupation zone as early as They provided for provisional payments for healthcare, vocational training, self-employment, remedies for distress situations and pensions for victims and their dependants. On 26 April 1949, the Act on the Treatment of Victims of National Socialist Persecution in the Area of Social Security (Compensation Act) was adopted for the entire American occupation zone by the Southern German Länder Council. This was promulgated by Land laws in Bavaria, Bremen, Baden-Württemberg and Hesse in August In line with Article 125 of the Basic Law, these Land laws became federal law when the Federal Republic of Germany was established and the Basic Law entered into force. Corresponding laws were enacted in the Länder of the British and French occupation zones and in West Berlin. With the exception of Länder in the British occupation zone, these laws governed the same types of damage as the Compensation Act. 1.3 Luxembourg Agreement, Hague Protocols and Settlement Convention Just as the Länder and municipalities had done prior to its establishment, the Federal Republic of Germany continued to treat moral and financial compensation for the wrongs committed by the National Socialist regime as a priority. The German Government decided as early as on 26 July 1951 that victims of pseudo-medical experiments should be compensated. Over the course of the year, great efforts were made both in the Länder and at federal level to introduce nation-wide compensation rules. At a special meeting of the German Bundestag on 27 October 1951, Federal Chancellor Adenauer declared that Germany was responsible for the atrocities committed by the National Socialist regime and offered to enter into negotiations with the state of Israel and the Jewish Claims Conference (JCC). This Conference on Jewish Material Claims Against Germany had been founded by 23 Jewish organisations on the previous day with the aim of enforcing compensation claims against Germany. Talks with representatives of Israel and the JCC were taken up in The Hague on 21 March As a result of these talks, the Hague Protocols was initialled on 8 September 1952 and an agreement with the state of Israel was signed in Luxembourg on 10 September. In this Luxembourg Agreement, Germany committed itself to paying DM3 billion to the state of Israel and DM450 million to the JCC. Germany made a large part of its payments to Israel in the form of deliveries of goods. In return, Israel waived compensation for Jewish victims of persecution who were resident in Israel in According to the second protocol to the agreement, the DM450 million fund for the JCC was intended for the support and integration of Jewish victims of persecution living outside Israel. In the first protocol, the German Government committed itself to establishing a legislative programme for Germany-wide restitution and compensation rules, and the basic principles of this legislation were defined. Principles for uniform restitution and compensation legislation were also set down in the Settlement Convention concluded in 1952 with the three Western occupying powers (Federal Law Gazette II 1954, p. 57, 181, 194).

9 Compensation for National Socialist injustice Page Additional Federal Compensation Act (1953) and Federal Compensation Act (1956) The first compensation act that applied throughout the whole of Germany was the Additional Federal Compensation Act, which was adopted on 18 September 1953 (Federal Law Gazette I p. 1387) and entered into force on 1 October Although this was much more than an addition to the Act on the Treatment of the Victims of National Socialist Persecution in the Area of Social Security, and in particular created legal equality and security on the territory of the Federal Republic of Germany, its provisions also proved inadequate. Following very detailed and careful preparation, the Federal Compensation Act (Federal Law Gazette I, p. 562) was adopted on 29 June 1956 and entered into force with retroactive effect from 1 October This Act fundamentally changed compensation for the victims of National Socialism and introduced a number of amendments improving their situation. At the outset, the Federal Compensation Act only provided for applications to be submitted until 1 April Implementing regulations to the Federal Compensation Act The fourth implementing regulation governs the reimbursement of costs for the involvement of insurance companies in resolving claims for compensation for insurance losses. The fifth implementing regulation determines which pension schemes were dissolved by National Socialist oppression. In the sixth implementing regulation (concerning a concentration camp directory), the German Government established which prison camps were to be considered concentration camps in the context of the provision in section 31 subsection (2) of the Federal Compensation Act governing the assumed loss of earning power. 1.6 Final Federal Compensation Act (1965) In applying the Federal Compensation Act, further need for amendment became clear. There was an awareness that the new piece of legislation would not be able to take account of all the demands of those eligible for compensation and that, given the high number of settled cases, these could not be re-opened. The amendment was thus to constitute the final piece of legislation in this field. After four years of intense negotiations in the competent committees of the German Bundestag and Bundesrat, the Final Federal Compensation Act was adopted on 14 September 1965 (Federal Law Gazette I, p. 1315), its very name emphasising that it was to be the last. Six implementing regulations to the Federal Compensation Act have been issued, of which the first three have been regularly amended to adapt the ongoing payments (pensions) to increasing costs of living.

10 Page 8 Development of provisions governing compensation and the consequences of war in Germany The Final Federal Compensation Act considerably extended the deadline (originally 1 April 1958, cf. I.5) as follows: > The deadline was annulled in cases of claims for immediate assistance and for mitigation of hardship (section 189 subsection (1) of the Federal Compensation Act) > The original legal position was restored in the case of failure to submit applications prior to the deadline through no fault of the applicant (section 189 subsection (3) of the Federal Compensation Act) > The deadline for subsequent registration of claims was extended to 31 December 1965 (section 189a subsection (1) of the Federal Compensation Act) > The subsequent registration of facts that had come to light after 31 December 1964 within one year (section 189a subsection (2) of the Federal Compensation Act) was introduced Nevertheless, Article VIII (1) of the Final Federal Compensation Act provides that even in cases of the original legal position being restored, no claims can be made after the 31 December 1969 deadline. In other words, claims for compensation payments under the Federal Compensation Act can no longer be submitted today. However, payments for damage to health can be adapted in cases where the victim's condition deteriorates. Furthermore, initial decisions can be revised through secondary procedures if they have been proved wrong according to the current interpretation of the law. The compensation and restitution acts were complemented by laws on compensation for public sector employees and in the sphere of insurance and pension law. 1.7 General Act Regulating Compensation for War-Induced Losses The payments provided for in the compensation laws are reserved for those who were victims of typical National Socialist injustice those persecuted for reasons of race, religion or political conviction. For other injustice leading to loss of life, damage to limb or health, or deprivation of liberty, compensation is granted under the General Act Regulating Compensation for War-Induced Losses of 5 November 1957 (Federal Law Gazette I, p.1747). Pensions and one-off compensation payments could and, in exceptional cases, still can be paid under section 5 of this Act in conjunction with the general legal provisions. 1.8 First comprehensive agreements with European states From 1959 to 1964, comprehensive agreements were concluded with Austria, Belgium, Britain, Denmark, France, Greece, Italy, Luxembourg, the Netherlands, Norway, Sweden and Switzerland for the benefit of nationals of these countries who had suffered National Socialist persecution. The Federal Republic of Germany made available a total of million (DM971 million) on the basis of these agreements. It fell to the governments of the countries concerned to distribute this financing amongst the victims. The comprehensive agreements have now been closed.

11 Compensation for National Socialist injustice Page German government directives, Article 2 Agreement After the deadline under the Final Federal Compensation Act had expired at the end of 1969, special cases of hardship continued to emerge where applicants were not eligible for payments because they had missed the deadline. Moreover, various Eastern European countries introduced emigration systems for Jewish citizens, as a result of which significant numbers of Jewish victims of Nazi persecution were able to emigrate from these countries to Israel. Because people in this group were excluded from receiving compensation at the time, the Knesset demanded changes in German compensation provisions. The German Bundestag requested the German Government to enact hardship compensation to enable those affected to receive support (resolution of 14 December 1979, (German Bundestag printed document 8/3511)). As a result, the directives on hardship compensation for Jewish victims of National Socialist persecution were issued on 3 October 1980 (Federal Gazette of 14 October 1980, No 192). Under these directives, a fund worth DM400 million was created, from which the JCC was to distribute one-off payments of DM5,000 to Jewish victims of National Socialist persecution. Similar rules were introduced for non-jewish victims of National Socialist persecution in 1981 (Federal Gazette of 29 August 1981, No 160). A compensation reserve fund was also established under the directives on hardship compensation for non-jewish victims of persecution, enabling victims resident in Germany to receive monthly payments of DM500. Although the DM400 million fund for Jewish victims of Nazi persecution was depleted over the subsequent years, numerous applicants had still not received any compensation, and the German Government therefore made a further pledge to provide a total of DM135 million for the fund. The situation changed with German unification. Article 2 of the supplementary agreement to the Unification Treaty (Agreement between the Federal Republic of Germany and the German Democratic Republic on the Enactment and Interpretation of the Treaty concluded in Berlin on 30 August 1990 between the Federal Republic of Germany and the German Democratic Republic on the Establishment of German Unity, published in Bulletin No. 112, p of 20 September 1990 Press and Information Office of the German Government) stipulated that the Federal Republic of Germany should conclude an agreement with the JCC on the compensation of Jewish victims of Nazi persecution who had not yet received any payments. This agreement known as the Article 2 Agreement was enacted on 29 October From then on, the one-off payments of DM5,000 defined in the hardship directives of 1980 were provided under this agreement. The agreement also introduced the possibility of a monthly payment of DM500 to Jewish victims who had suffered particularly severe persecution. The Federal Ministry of Finance conducts regular talks with the JCC about the implementation of the agreement with the aim of modifying and enhancing the entitlement to payments. In 2012, twenty years after it was originally concluded, it was decided that the agreement should be revised in order to simplify the rules and take account of arrangements that have been made in the meantime with regard to modifications.

12 Page 10 Development of provisions governing compensation and the consequences of war in Germany 1.10 Arrangements with Eastern European states Following the process of German unification and the end of the East-West conflict, the Federal Republic of Germany concluded arrangements on compensation for National Socialist injustice with Poland and three successor states of the Soviet Union (the Republic of Belarus, the Russian Federation and Ukraine). The Federal Republic of Germany and the Republic of Poland agreed to establish the Foundation for German-Polish Reconciliation in Poland, which is subject to Polish law and was financed with a one-off contribution of million (DM500 million). These funds were for persons who had suffered serious damage to health during the Second World War due to National Socialist injustice and were subsequently in a difficult financial situation. Foundations for understanding and reconciliation were established in Moscow, Minsk and Kiev in 1993 for the same purpose. Germany donated a total of 0.51 billion (DM1 billion) for these foundations. They in turn gave the assurance of making payments to National Socialist victims in other states of the former Soviet Union. More than 15,000 eligible persons in the Baltic states (Estonia, Latvia and Lithuania) received payments on the accepted scale from the funds of the foundations in Moscow and Minsk. Because some of those eligible from the Baltic states refused to apply to the foundations in Moscow and Minsk, additional infrastructure assistance of 1.02 million (DM2 million) was granted to the government of each Baltic state. Social institutions have been supported using these funds, especially for victims of National Socialism. Compensation payments were also made to the other Eastern and South-Eastern European states of the former Eastern bloc. For Czech victims of National Socialism, compensation was granted by the German- Czech Future Fund in accordance with the German-Czech declaration of 21 January Germany made million (DM140 million) available for this Fund. In order to carry out similar measures in the other Central and Eastern European countries (Albania, Bosnia, Bulgaria, Yugoslavia, Croatia, Macedonia, Romania, Slovakia, Slovenia and Hungary), the 1998 German budget earmarked million (DM80 million) to be made available from 1998 to Various national institutions, usually the national Red Cross, assumed responsibility for carrying out such measures in the remaining Central and Eastern European states Central and Eastern European Fund (JCC) Given the particular suffering of Jewish victims in Central and Eastern European states, the JCC established a Fund to finance additional measures for Jewish victims who had suffered particular hardship. The fund made monthly payments to victims of National Socialism who were residents of Eastern European countries. In the revised version of the Article 2 Agreement, this fund was incorporated into its broader regulatory framework.

13 Compensation for National Socialist injustice Page Compensation for forced labourers and other victims of National Socialism Foundation for Remembrance, Responsibility and the Future The Foundation for Remembrance, Responsibility and the Future was established by the Act on the Creation of a Foundation for Remembrance, Responsibility and the Future (Foundation Act) of 2 August 2000 (Federal Law Gazette I, p. 1263, most recently amended by the Act of 21 December 2006, Federal Law Gazette I, p. 3343) and equipped with 5.16 billion (DM10.1 billion) to provide compensation in particular to former forced labourers. These monies were made available by the Federal Republic of Germany and German companies. The main purpose of the Foundation was to make financial compensation available to affected persons through partner organisations. The individual partner organisations were responsible for accepting and examining claims. An application deadline 31 December 2001 had to be introduced to ensure that payments to those eligible were made without delay. An extension until 31 December 2002 was granted where applicants failed to meet this deadline through no fault of their own. This brought an end to the individual payments as of 31 December 2006, as provided for in the Foundation Act. New applications may no longer be filed. The Foundation s resources for payments to forced labourers and other victims of National Socialism have now been fully disbursed. More than 1.7 million people, 1.66 million of whom were former forced labourers, received payment. Of the Foundation s capital, 4.37 billion was disbursed for payments to former forced labourers. Under the Foundation Act, the following groups of people were eligible: > Persons who were detained in a concentration camp as defined in section 42 subsection (2) of the Federal Compensation Act or detained under comparable conditions in some other prison camp outside the present-day territory of the Republic of Austria or in a ghetto and who were subjected to forced labour (section 11 subsection (1) number 1 of the Foundation Act). > Persons who were deported from their home country to the territory of the German Reich within its 1937 borders or to a region occupied by the German Reich and were subjected to forced labour in an industrial or commercial enterprise or in the public sector and were detained under conditions other than those named above or were subjected to prison-like conditions or comparable exceptionally hard living conditions. This does not apply to persons who are able to receive payments from the Austrian reconciliation fund for forced labour performed mainly in the present-day territory of the Republic of Austria (section 11 subsection (1) number (2) of the Foundation Act). In addition, the Foundation Act contained an escape clause which allowed the partner organisations charged with implementation to provide assistance to other victims of National Socialist injustice, in particular to forced labourers in agriculture.

14 Page 12 Development of provisions governing compensation and the consequences of war in Germany Forced labour as a prisoner of war was not a cause of entitlement. The Foundation Act also provided for payments to compensate for other personal injury suffered in connection with National Socialist injustice, first and foremost in the course of medical experiments or in the case of death or serious damage to the health of a child kept in a home for forced labourers children (section 11 subsection (1), fifth sentence, of the Foundation Act). The Foundation Act also allowed for payments to persons who, in the course of racial persecution, suffered property damage, as defined in the restitution laws, significantly and directly caused by German companies and who, because they did not meet the residence requirements under the Federal Compensation Act, were unable to receive any payment (section 11 subsection (1) number 3 of the Foundation Act). The Foundation Act further envisaged a separate procedure for compensating other damage to property in connection with National Socialist injustice. The International Organization for Migration was responsible for compensating property damage, while insurance claims arising from racial persecution fell under the jurisdiction of the International Commission on Holocaust Era Insurance Claims. The ceiling for damage to property was 0.53 billion (DM1.05 billion). Following the end of the payments, the Foundation for Remembrance, Responsibility and the Future now works solely as a benevolent foundation, as provided in the Foundation Act. The Foundation s partner organisations have completed and concluded their duties in providing compensation to forced labourers. More information is available online at or at Ghetto Work Recognition Directive On 1 October 2007, the German Government passed a directive under which victims of Nazi persecution can receive a payment of 2,000 for work in a ghetto which did not constitute forced labour and which has not been recognised to date under social insurance law. The directive thus covers circumstances for which no compensation could be provided either under the Act Regarding the Conditions for Making Pensions Payable on the basis of Employment in a Ghetto (Ghetto Pensions Act) or from funds of the Foundation for Remembrance, Responsibility and the Future. The directive was enacted against the background of the very high rejection rate of applications made under the Ghetto Pensions Act of 20 June The directive made it much easier to meet the requirements for receiving payment than it was under the Ghetto Pensions Act. The Federal Social Court s new rulings on the Ghetto Pensions Act of 2 and 3 June 2009 made it necessary to re-evaluate the situation from the point of view of pensions law and led to the Ghetto Pensions Act s eligibility requirements being brought into line with those of the Ghetto Work Recognition Directive. A large number of the applications which had been rejected were reexamined by the German Statutory Pension Insurance Scheme and approved. This affected the further implementation of the directive in the version of 1 October 2007, because the payments made under the directive had to be returned if a pension under the Ghetto Pensions Act was granted for identical periods and employment. For example, repayment had to be made even if the pension granted under the Ghetto Pensions Act was well below the 2,000 payment made under the directive. Such hardship cases had to be avoided.

15 Compensation for National Socialist injustice Page 13 The directive was therefore amended with retroactive effect and redrafted in The new version removed the link between payments under the Ghetto Work Recognition Directive and the receipt of a pension under the Ghetto Pensions Act. As a consequence, the fact that work in a ghetto has been taken into account under social security law now no longer precludes a one-off payment being made in recognition of ghetto work. The Federal Office for Central Services and Unresolved Property Issues, which is responsible for implementing the directive, is reviewing the applications already processed. Final decisions are now being made on applications that were suspended because of a pension being paid. There is thus no need to submit fresh applications. The following people can apply for and receive the one-off payment of 2,000 in recognition of work in a ghetto: > people who were Victims of National Socialist persecution within the meaning of section 1 of the Federal Compensation Act, > forced to live in a ghetto which was under National Socialist influence and > employed in the ghetto without coercion during this time. Those whose work in the ghetto has already been compensated for as forced labour from funds from the Foundation for Remembrance, Responsibility and the Future do not qualify for payment. There is no legal entitlement to the payment. Only the person entitled to the payment can apply. Applications must be made in writing to the Federal Office for Central Services and Unresolved Property Issues. Further details can be found on the website of the Federal Office for Central Services and Unresolved Property Issues: ( _links/f0_ghetto/index.html) 1.14 Washington Conference on Holocaust-Era Assets Despite the material compensation that had already been granted, the Federal Republic of Germany again declared its readiness, on the basis of the principles adopted at the Washington Conference on Holocaust-Era Assets on 3 December 1998, to continue its efforts to clarify the provenance of works of art confiscated under National Socialism in so far as the legal and factual possibilities allow. Moreover, it pledged to take the steps necessary to reach an equitable and fair solution when such works of art are identified. A number of paintings by well-known artists have been returned from public ownership to their legitimate owners or their heirs in the last twelve years as a result of the implementation of the Washington principles, a joint declaration by the Federation, the Länder and national associations of municipalities, and the research undertaken. This requires careful examination of each individual case, including a check against material compensation already provided to ensure that the legitimate owners are identified and to avoid duplicate compensation. A manual on the implementation of the joint declaration and the website of the central office for the documentation of lost cultural property ( offer practical guidance for tracing and identifying works of art confiscated by the National Socialists and for making decisions on their possible return. The Federal Office for Central Services and Unresolved Property Issues carries out investigations on the provenance of works of art.

16 Page 14 Provisions based on the Federal Compensation Act II. Provisions based on the Federal Compensation Act 2.1 Federal Compensation Act The Additional Federal Compensation Act of 18 September 1953 (Federal Law Gazette I, p. 1387) was the first law to codify compensation for National Socialist injustice at national level, although it was only intended as temporary legislation. Prior to its introduction, only the compensation laws of the individual Länder applied, which were based on the compensation provisions in the occupation zones of the Western powers. The Federal Compensation Act of 29 June 1956 (Federal Law Gazette I, p. 562) entered into force with retroactive effect from 1 October It is a comprehensive piece of legislation that covers all aspects of compensation for National Socialist injustice. It is implemented by the compensation authorities of the Länder (section 184 of the Federal Compensation Act). Disputes are settled by the ordinary courts (section 208 of the Federal Compensation Act). The structure created by the Federal Compensation Act was also used as a basis for extralegal provisions that were subsequently introduced. The purpose of the Act is to compensate those subjected to oppression by the National Socialist regime. a. Victims of persecution as defined in section 1 of the Federal Compensation Act Only victims of persecution by the National Socialist regime are eligible for compensation. Section 1 of the Federal Compensation Act defines victims of persecution as those who suffered damage to life, limb or health, depreciation of freedom, property or assets in their business or professional career as a result of National Socialist oppression (as defined in section 2 of the Federal Compensation Act) due to their political opposition to National Socialism or for reasons of race, religion or ideology. Those who suffered oppression as a result of being involved in artistic or academic pursuits of which the Nazi regime disapproved, or because they were close to a victim of persecution, are themselves treated as victims of persecution. Under the Federal Compensation Act, surviving dependants and close relatives who, as such, were adversely affected by National Socialist oppression are also considered to be victims of persecution. When applying the Federal Compensation Act, it became necessary to define the reasons for persecution more precisely. For example, in cases of persecution for reasons of political opposition, distinctions were

17 Compensation for National Socialist injustice Page 15 made depending on the motivation of the perpetrators. In cases where individuals were detained by the National Socialist state based on their assumed political opposition, the actual beliefs of the detainees are no longer relevant. Nationals of countries which were occupied by Germany were not considered victims of persecution due to political opposition to National Socialism because it was assumed that they were generally persecuted on the grounds of nationality. Conscientious objectors were likewise not considered to be victims of persecution due to political opposition to National Socialism. Victims had to actually have been subjected to persecution within the meaning of section 2 of the Federal Compensation Act. For instance, Jewish citizens of what used to be Palestine and is now Israel were included in the racial fanaticism of the National Socialists, but did not actually suffer oppression under the National Socialist regime. b. General War-Induced Losses Those who suffered losses as a result of the war that was started by Nazi Germany are not considered to be victims of direct National Socialist persecution within the meaning of the Federal Compensation Act. Prisoners of war, expellees, victims of the bomb war, victims of retaliatory measures in the partisan war and victims of rape all suffered terrible fates as a result of Nazi Germany's war of aggression, which was in violation of international law. These groups of people are considered to have suffered general war-induced losses which are not included in the Federal Compensation Act. c. Types of compensation The types of compensation provided under the Federal Compensation Act are pensions, one-off payments, retraining grants, medical treatment (including compensation for loss of earnings during treatment) and pensions for surviving dependants. The pensions were calculated as a percentage of the amount that would be paid to the surviving dependants of a tenured civil servant of a similar social and economic position as the victim (in the case of an accident at work). d. Territoriality principle The purpose of the Federal Compensation Act was to compensate victims of persecution living in the territory of the former German Reich. The victims had to be within the territory of application of the Act. Expellees within the meaning of the Federal Expellees Act were included. Stateless persons and refugees within the meaning of the Geneva Convention were also eligible for support under the Federal Compensation Act (limited to damage to limb or health and deprivation of liberty). e. Need for extra-legal provisions According to the Final Federal Compensation Act of 14 September 1965, no applications for support under the Federal Compensation Act could be submitted after 31 December However, it was clear that despite all the efforts made, not all victims of persecution had received compensation. In consideration of the hardship resulting from this, the German Government adopted a number of extra-statutory compensation arrangements through which victims of National Socialist persecution can receive financial aid. There is no statutory entitlement to this aid, nor do any time limits apply to these arrangements.

18 Page 16 Provisions based on the Federal Compensation Act 2.2 Extra-legal provisions for Jewish victims (Article 2 Agreement) In 2012, the German Government revised the Article 2 Agreement, which is implemented by the JCC, especially in order to allow for financial assistance to Jewish victims of Nazi persecution who have received no compensation payments to date. Grants Jewish victims of National Socialist prosecution as defined in section 1 of the Federal Compensation Act who were directly affected by National Socialist oppression within the meaning of section 2 of the Federal Compensation Act, or those who lost their parents to National Socialist oppression (child victims of prosecution) and who have received no compensation payments from Germany to date can receive a one-off payment of 2, In cases of economic hardship, ongoing assistance can be provided if the following conditions are met: > Imprisonment in a concentration camp or ghetto as defined in section 42 subsection (2) of the Federal Compensation Act > Life in hiding in degrading conditions or in illegality under a false identity Generally speaking, the two forms of compensation are mutually exclusive. However, one-off payments from German sources do not preclude the granting of ongoing assistance. Ongoing assistance is granted for the duration of the economic hardship. Pensions provided on account of old age, reduced earning capacity or death and comparable payments are not taken into account when calculating income. There is no statutory entitlement to payments under the Article 2 Agreement (oneoff or ongoing assistance). They are strictly tied to the individual person and cannot be inherited or transferred. They cannot be paid out to third parties. An exception applies to surviving spouses or, if the spouse is also deceased, to surviving children as joint beneficiaries in cases where the victim dies after submitting an application but before a decision is reached. In such cases, the payment is capped at 2,556. It is necessary to provide proof of entitlement. Should this not be possible, the entitlement can be substantiated in a suitable and plausible way. The payments can be refused in full or in part if the applicant resorted to improper means or caused, encouraged or allowed the submission of incorrect or misleading information, either through wilful intent or gross negligence. In such cases, payments may be claimed back in whole or in part. Applications can be submitted to the offices of the JCC. Institutions There is a great need for home nursing and medical care for the elderly survivors of the Holocaust, which has increased considerably over the past years. The JCC is therefore provided with resources under the Agreement for use in supporting institutions that help Jewish victims of National Socialism who require such care.

19 Compensation for National Socialist injustice Page Fund for those not of the Jewish faith who were persecuted as Jews under the National Socialist regime A fund for those who are not of the Jewish faith but who were nonetheless persecuted as Jews under the National Socialist regime was established in 1952, immediately after the Luxembourg Agreement. Payments from the fund (in the version of 15 September 1966; Federal Gazette No. 178 of 22 September 1966) may be granted to individuals who were persecuted because of their Jewish origins as defined by the Nuremberg Laws or who were adversely affected by the persecution as a near relative. Furthermore, they must not have belonged, or still belong, to the Jewish community, either at the time of the persecution or of the decision on their claim for compensation. This is a necessary delimitation from the responsibility of the JCC for practising Jews. Moreover, potential beneficiaries of the fund include the spouses of Jewish victims who themselves did not fall under the Nuremberg Laws but who were persecuted due to the Jewish origins of their spouses or who were adversely affected by this persecution. The Federal Ministry of Finance is responsible for the administration of the fund. There is no statutory entitlement to payments from the fund. They are strictly tied to the individual person and cannot be inherited or transferred. Grants Payments from the fund may be granted either in the form of one-off or ongoing assistance. The factors that are taken into consideration include the gravity and impact of the persecution as well as the financial and personal circumstances of the applicant and of any relatives legally obliged to provide support The level of the ongoing assistance is determined by guideline figures which are regularly adjusted to reflect general economic developments. One-off assistance is generally granted to cover the cost of living or specifically to cover costs incurred by illness which are not covered by other means or for the acquisition of household articles or clothing. Institutions Under the directives of the fund for persons not of the Jewish faith who were persecuted as Jews, grants can be provided to organisations responsible for old people's or other homes if they make a long-term commitment to provide a certain requisite number of places in the homes to those eligible for payments. Individuals can submit applications for compensation informally to the Federal Ministry of Finance. 2.4 Compensation for non-jewish victims The German Government made corresponding provisions for non-jewish victims in its Directives on Payments to Persecuted Non-Jews to Compensate for Individual Hardships within the Context of Restitution of 26 August 1981 in the version of 7 March 1988, known as the Compensation Disposition Fund (Federal Gazette No. 55 of 19 March 1988).

20 Page 18 Provisions based on the Federal Compensation Act Under these provisions, non-jewish victims of persecution who suffered damage to their health as a result of National Socialist injustice or who were prosecuted because of their political opposition to National Socialism or on the grounds of race, religion or ideology (sections 1 and 2 of the Federal Compensation Act) but were not eligible for statutory compensation payments for formal reasons could receive one-off payments of up to 2, and, in special cases, ongoing assistance. The following constitute special cases: In contrast to the one-off assistance described above, assistance from the Compensation Reserve Fund can only be granted to those with German nationality or to those who gained it before 1 January 1999 or to non-german citizens of German origin as defined by the Federal Expellees Act. There is no statutory entitlement to the measures under these provisions. They are strictly tied to the individual person and cannot be inherited or transferred. The Federal Ministry of Finance decides on claims in accordance with these guidelines. > Imprisonment in a concentration camp as defined by the Federal Compensation Act for at least three months; individual reviews are possible in the case of shorter imprisonment. > Imprisonment in a prison camp or life in camp-like conditions for at least three months; individual reviews are possible in the case of shorter imprisonment. > Life in hiding in degrading or particularly difficult conditions or in illegality for at least six months if this led to permanent damage to health and a disability of at least 50%.