The Union and the SPD are approaching the topic of land rent. According to a report of the "Handelsblatt", Labor Minister Hubertus Heil (SPD) and Chancellery head Helge Braun (CDU) have agreed on a compromise proposal that provides for income testing instead of a means test. Citing government circles, the newspaper writes that the proposal should be discussed in a high-level coalition working group that will meet for the first time next week.
The Grand Coalition wants to improve with the basic pension low earners who have paid at least 35 years in the pension fund. Heil had presented a bill in May without the means test provided for in the coalition agreement, and thereby offended the Union. As a compromise line it now appears that, although the financial circumstances need not be disclosed for the receipt of the basic pension, the household income must not exceed a certain limit.
Heil had stated that his original basic pension scheme would make about three million low earners better off in old age. According to government sources, the compromise compromise solution with income verification could still benefit more than two million people. However, details and financing would have to be clarified in the working group. The goal is to bring the law on basic pension in October to the Cabinet.
