Pensioners can look forward to the highest increase in their payments in decades. In the debate on the pension package in the Bundestag, however, the view went beyond that.
Representatives of the traffic light coalition have raised the prospect of possible improvements to the government’s pension package in the Bundestag. A draft law on pension increases in 2022 and improvements in the case of reduced earning capacity was discussed on Friday.
In the case of planned surcharges for people with reduced earning capacity, the Greens announced that they wanted to work, among other things, for an earlier, retrospective introduction. The draft law does not provide for the surcharges to come into force until July 1, 2024.
As early as July 1 of this year, the strongest increase in retirement benefits for decades is to take place. Pensions will increase by 5.35 percent in the West and by 6.12 percent in the East. Federal Labor Minister Hubertus Heil (SPD) emphasized: “Most pensioners in Germany do not live in the lap of luxury.” The upcoming adjustment is not a gift. “It’s deserved,” said Heil.
No cuts in the Corona crisis
The minister pointed out that the existing pension guarantee ensured that payments were not reduced in the 2021 Corona crisis. Now the so-called catch-up factor is being reintroduced. The factor ensures that the pension increase is not even more lavish. Heil said the factor ensures a fair balance of interests between pensioners and contributors.
Several representatives of the opposition rated the planned improvements for disability pensioners, who have been receiving such benefits for a long time, as long overdue but still insufficient. Surcharges are planned for the around three million people who received a disability pension from 2001 to 2018, for example because of a serious illness or disability.
Those who did so by June 2014 should receive 7.5 percent more. Anyone who went into EM pension from then until the end of 2018 should get 4.5 percent more. The surcharge should only flow from July 1, 2024 – partly because the German pension insurance has to do with the administrative implementation of the basic pension beforehand.
The SPD MP Michael Gerdes announced that his parliamentary group would advocate “that we reconsider the late start”. The Greens’ social politician Frank Bsirske suggested allowing the surcharges to flow retrospectively from January 1, 2024. Bsirske calculated that two years later this would require a contribution rate increase of 0.1 percent and a higher federal subsidy. So far, costs of 1.3 billion euros in 2024 and 2.6 billion euros in the years thereafter are planned for the improvements in the disability pension.
One more shovel
The President of the Social Association Germany, Adolf Bauer, called on the MPs to “put a shovel on top of it”. The intention of the surcharges is to be welcomed. “For a complete alignment of all EM pensions, however, surcharges of around 13 percent and around 8 percent would have been necessary.”
Overall, Heil also defended the decision to grant relief to citizens against criticism because of the high energy prices. Pensioners would also benefit. The CSU social politician Max Straubinger accused the coalition of withholding the 300 euro energy price flat rate from pensioners.
Heil announced further relief for pensioners, among other things, in the event of long-lasting price increases in Germany. “If the price increases last a long time, then we will take further measures, including for pensioners.” Structural relief for lower and middle incomes would then be targeted.
Source: Stern
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