PRESS RELEASE NO. 22/2020 The basic pension brings a measure of fairness

Frankfurt am Main – According to IG Metall, the basic pension approved today by the Bundestag brings a measure of fairness. “The basic pension finally recognizes the lifetime contributions of 1.3 million retirees. After 35 years of work, no one should have to become a supplicant at the social welfare office,” said Jörg Hofmann, President of IG Metall, on Thursday in Frankfurt.

Women in particular will benefit from the basic pension. Women are most likely to work in low-wage jobs and continue to shoulder the bulk of child-rearing and caregiving responsibilities. As a result, they often lack sufficient contribution years for pension insurance. Hofmann: “Anyone who raises children or cares for relatives must have more than just basic income support in old age. That is more than fair.”

However, the basic pension suffers from a design flaw. “The costly means test makes the basic pension unnecessarily complicated,” explained Hans-Jürgen Urban, the executive board member of IG Metall responsible for social policy.

“While the basic pension does create a measure of fairness, it cannot solve the fundamental problems of old-age security,” said Urban. The union representative advocates for a change of course in pension policy. “The introduction of a solidarity-based insurance system for the working population, raising pension levels, and providing more options for an age-appropriate transition out of the workforce must be on the social policy agenda.”

Poverty in old age, one of the central problems of old-age security, will not be eliminated by the basic pension. “The basic pension will not be able to eliminate the cause of poverty in old age, namely low wages. This is where we must start in order to make adequate pensions possible,” Hofmann stated.

Further information and press photos of Jörg Hofmann

Further information and press photos of Dr. Hans-Jürgen Urban