Berlin – Big pension issue in coalition! Ministers from the CDU/CSU and SPD have agreed on a large pension package. But now there is a big split within the European Union. It’s about pension levels after 2031 and their costs. On one side was SPD and CDU Chancellor Friedrich Merz, on the other were Junge Union, young CDU/CSU MPs and other dissidents.
What is this about?
The pension rate must remain at 48 percent until 2031. This means that anyone who has worked for 45 years will receive almost half the average salary as a pension.
In order for this to work, the government has what is called Sustainability factors open. He would actually ensure that retirement rose less sharplywhen fewer young people pay more and more old people.
Without this “cap”, the figure would fall as early as 2029 – to 47 percent in 2031.
What matters is what happens after 2031
After 2031, sustainability factors should start to come into play again. Consequences: The retirement rate will slowly fall to around 46.3 percent by 2040.
However: According to the new pension package, the government must keep the rate about one percentage point higher than that set in the previous law even after 2031. SPD negotiators led by Social Minister Bärbel Bas wrote the law’s passage, thereby drawing a stop to the line.
This costs a lot of money: up to an additional 120 billion euros between 2032 and 2040, according to German pension insurance calculations.
This is where the debate starts
That’s why there’s an uprising now Young Association as well as the “Young Group” of the CDU/CSU parliamentary group in the Bundestag.
This is because the pension package has been approved by Friedrich Merz’s cabinet. The charge: EU negotiators ignored the fatal (and expensive!) part and abandoned the draft – or gave in to the Social Democrats. Merz himself stated that “no one” supports this expensive regulation in terms of its content, but he still wants to enforce the law.
The dispute has now escalated to such an extent that the “Young Group” in the Union’s parliamentary group is threatening to block the pension package in the Bundestag. And he openly threatened: If this article remains, the law will fail. This can be done because without 18 members of parliament, the coalition will not have a majority. There are also other dissidents.
The SPD is also very stubborn. At the weekend, the Minister of Finance and SPD co-leader Lars Klingbeil (47) It’s clear: the law remains as is.
What is in the bill and coalition agreement?
The CDU and SPD have stipulated in the Koa agreement: The pension rate will remain stable at 48 percent until 2031, and there will be a higher age standard. That Mom’s retirement (CSU project) is coming – mothers (and fathers) who have children born before 1992 will receive more retirement points for their childcare time. That Active retirement (CDU Project) should make it possible to work beyond retirement age and earn income of up to 2,000 euros tax-free.
▶ What’s not in it: What will happen after 2031 – and who will pay for it all. And most importantly: further suspension of the stop line described above. According to Junger Union, this was never agreed upon – but it would have cost an additional 120 billion euros!
Who pays for all this?
The federal government – ie. all taxpayers – bear the additional costs. For workers, this means pension contributions will continue to increase. By 2028, the figure is expected to rise sharply again for the first time since 2007 – to 19.8 percent.
And it continues: 21.2 percent can be achieved by 2037! For comparison: at the end of the 1990s the record value was 20.3 percent. DRV boss Alexander Gunkel (57) warned: “The burden on workers and employers is increasing. The state must be careful so that the system does not turn upside down.”
Who benefits?
All current and future retirees – they get something more. But for workers, this plan has significant implications: higher contributions, and less room for private funding.
SPD Minister Bärbel Bas replied: “We guarantee pensions for all generations.” CDU youth see it differently – and want to stop the billion-dollar plan before it becomes law.
