After weeks of speculation, the Pension Commission’s proposals are now on the table. Chancellor Merz has made it clear: He now wants to turn these proposals into law as quickly as possible. “All elements of this reform package must now be implemented swiftly,” he announced.
From IG Metall’s perspective, some of the commission’s proposals are good and sensible. Others are heading in the wrong direction.
Pension reform—the positives:
The Pension Commission recommends transforming the statutory pension insurance system into an insurance scheme for the working population in the long term.
“The fact that in the future all working people—employees, the self-employed, politicians, and civil servants—are to be included in the old-age pension system is in line with a long-standing demand by IG Metall, ”says Christiane Benner, First Chair of IG Metall. She “explicitly” supports this approach.
Pension Reform – Some Concerns:
From IG Metall’s perspective, it is wrong to call into question proven options for a flexible and socially secure transition to retirement. Abolishing the pension after 45 years of contributions would send the wrong signal. “Those who have paid contributions for significantly longer than others and contributed to this country’s economic success must be able to rely on the fact that this lifetime achievement is also recognized in the pension system,” says Benner.
The Pension Commission recommends abolishing the so-called “block model”for partial retirement .
Ending the block model would weaken an important tool for socially responsible transformation. “Especially in times of profound industrial upheaval, employees and companies need reliable options for managing the transition from paid work to retirement,” says IG Metall Chair Christiane Benner.
The Pension Commission also leaves open the question of how occupational pension plans (bAV) can be made significantly more widespread. However, there has been a great need for action in this area for years. From IG Metall’s perspective, a reliable occupational pension plan secured by collective bargaining agreements must be a central component of a modern retirement security system.
There are also questions regarding the statutory pension level and the planned “capital pension.” Under the capital pension, a portion of pension contributions would be invested in the capital market—for example, in stocks. The returns from these investments are intended to support the pension insurance system in the long term. IG Metall’s Social Affairs Director, Hans-Jürgen Urban, says: “If the level of pensions and benefits under the statutory pension system were to be scaled back and left at the mercy of the turbulence in the capital markets, that would be a dangerous gamble with the retirement income of more than 20 million people.”
What’s Next:
The federal government is accelerating the pace of pension reform. Important decisions could be made at the coalition committeemeeting on July 1. However, the actual legislation will not be able to be passed before Parliament’s summer recess .
IG Metall and the German Trade Union Federation (DGB) will continue to champion the interests of workers. The DGB has established its own pension commission.
It will present proposals for a solidarity-based pension reform.
The goals are: a secure pension, broad-based, solidarity-driven financing, and a welfare state that recognizes lifetime achievements and guarantees social security .
Recommended reading: Interview with Christiane Benner on pension reform.
