Because of the aging society, the pension system is facing major challenges. A group of experts is now presenting recommendations for new regulations - radical changes are rather not among them.
Berlin (dpa) - The Federal Government's pension commission proposes a reform package to make the pension future-proof - but not a fundamental change, for example with a higher retirement age.
The system, which has been tried and tested for decades, should be adapted and changed, but "not turned upside down", according to the Commission's final report, which is available to the German Press Agency. The "Spiegel" had previously reported on the paper. The recommendations for the period after 2025 are to be handed over to Federal Social Minister Hubertus Heil (SPD) today.
In the report, the Commission states: "Demographic developments will lead to considerable additional financial burdens in statutory pension insurance." The financing structure must therefore be readjusted over the next few decades. A "permanently reliable generation contract" requires a balanced financial participation of everyone - the contributor, the taxpayer and the pensioner.
Specifically, the mechanism should continue beyond 2025 with so-called holding lines for the pension level and the contribution rate. For example, the level of protection - the ratio of a statutory standard pension after 45 years of contributions to wages - should lie in a corridor between 44 and 49 percent. A corridor between 20 and 24 percent is recommended for the contribution rate. This would give pensioners the promise of participation in the development of prosperity and limit the burden on contributors. In the future, such binding stop lines should apply for seven years at a time - the first stipulation for the period from 2026 to 2032.
The Bundestag had already decided on a pension package for the period up to 2025. It fixes the pension level at at least 48 percent. Until then, the contribution rate should not exceed the 20 percent mark. It is currently 18.6 percent.
The commission was set up in 2018 and includes representatives of employers and unions, scientists and specialist politicians from the grand coalition. Heil had made it clear that he wanted to set the course for legal changes based on the recommendations during this parliamentary term. The Commission is looking at the period from 2025 to 2060.
The Commission did not set a higher regular age limit for access to pension - it will gradually increase to 67 by 2031. After careful consideration, it was concluded that at this point in time no further increase beyond 67 years should be decided. Rather, in 2026 a new "old-age insurance advisory board" should make an assessment. The Commission also recommends that all reasonable measures be taken to ensure that workers can stay longer at work.
However, there are special votes in the report from members of the Commission, for example against a perceived lower limit of the pension level or the decision not to recommend an increase in the retirement age.
Regarding the possible involvement of civil servants in statutory pension insurance, the report says that this is unlikely to serve sustainable funding. Although it could bring relief, in the long run this would be offset by high additional pension benefits. In order for the pension funds to have a thicker financial cushion, the report also suggests a higher minimum reserve.
Private and company pension schemes should be made more attractive, as the current state is "unsatisfactory in many ways". Funding should be increased in this way. In order to reduce costs for Riester contracts, it should be possible to place all product offers in a standardized form on a state online platform without selling costs. The state should also keep the possibility open to offer a standard pension product with public institutions.
Pension commission
Current data on contribution rate and standard age limit