Olaf Scholz and the ministerial council are paving the way for the new pension package II. Now it is the Bundestag’s turn.
The Federal Cabinet has approved the Pension Package II. The ministerial meeting on Wednesday cleared the way for the plans of Labor Minister Hubertus Heil (SPD) and Finance Minister Christian Lindner (FDP), according to government sources.
The coalition had previously wrangled over the plans for months. The finance ministry recently blocked the draft bill in a dispute over the federal budget. With the cabinet decision, it is now the Bundestag’s turn. The Federal Chancellery had previously asked the states to shorten the deadline so that the Bundesrat can discuss the reform at its meeting on July 5.
Pension package II including generation capital
The pension package is intended to ensure that pensions continue to rise in line with wages in Germany. To this end, the pension level is to be fixed at 48 percent.
In addition, generational capital is to be set up: the government wants to invest at least 200 billion euros, mostly from federal debt, in the stock market by the mid-2030s. The interest income is intended to dampen the expected significant increase in pension contributions.
Source: Stern
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