The coalition has promised to stabilize pension levels in the long term. Now the Minister of Labor is announcing a concrete law for this.
Federal Minister of Labor Hubertus Heil (SPD) wants to set a long-term course for the future of pensions in Germany with a new pension package.
With the pension package II, two central pension policy projects from the coalition agreement would be implemented this year, Heil told the German Press Agency in Berlin. According to Heil, these are promises about the level of pensions and capital formation in the case of pensions.
“First: We ensure that the pension level remains stable at 48 percent, in the long term. And secondly: We are putting the financing of the pension on a broad basis by building up a capital stock, »said the SPD politician. Heil referred to another pension law that had already been introduced in the Federal Cabinet before Easter. “Both – pension packages I and II – are important foundations for the future of old-age security,” he said.
Traffic light ruled out pension cuts
SPD, Greens and FDP had announced in their coalition agreement that they wanted to “permanently secure” the minimum pension level of 48 percent. The pension level expresses the ratio of pensions to wages. The traffic light partners ruled out pension cuts or an increase in the retirement age. Instead, they promised to save new capital for the pension fund – as a permanent fund, professionally managed and invested globally. A capital stock of ten billion euros from budget funds should be the first step in 2022.
From Heil’s point of view, the planned law is about permanent security. “The central concept is stability,” he said. The pension level should be kept stable “far beyond 2025”. “We know that this is a big challenge because the baby boomers will be retiring from 2025.” Heil affirmed that stability also means securing the basis for financing pensions on the labor market. “To do this, we need a high level of labor force participation and appropriate wage developments.”
For the additional capital stock from tax funds that is now being prepared, the minister promised: “We will invest it sensibly.” Overall, the pension package II stabilizes the pension level and strengthens the security of the statutory pension in the long term.
Source: Stern
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