The money Grünenthal and the German government offered during the Thalidomide trial in Alsdorf went into a public foundation fund established by law in December 1971.
The new foundation was called “Disabled Children’s Relief Foundation for People with Disabilities” (in German: “Hilfswerk für behinderte Kinder”) and started to make its first payments in October 1972. German survivors received a one-time compensation amount followed by annual pensions depending on the severity of their condition. (The money Grünenthal originally provided for this fund only lasted until 1997. Ever since, the monthly compensation payments have been entirely paid for by the German government).
Sources: Chronology of events provided by Beate Kirk, in: Der Conterganfall: eine unvermeidbare Arzneimittelkatastrophe? Dissertation. Greifswald 1998.
Spiegel Online: 50 Jahre Schweigen (50 years of silence), August 31, 2012.