Frankfurt am Main – IG Metall has responded to the federal government’s Pension Package II with a critical welcome. Christiane Benner, the union’s president, said: “The pension package is a small ray of hope in uncertain times. The federal government’s agreement helps build greater trust in politics. Nevertheless, it is not a solution to the many problems facing the pension system.” Federal Labor Minister Hubertus Heil has held his ground in the face of resistance within the coalition.
IG Metall views the increased reliability and trust in the statutory pension system—with a stabilized pension level—in a positive light. According to Hans-Jürgen Urban, the IG Metall executive board member responsible for social policy, pension policy is taking a “significant step forward” here: “The decline in pensions has been halted for the time being. The federal government is fulfilling an important promise from the coalition agreement, but unfortunately only in part: What the ‘traffic light’ coalition parties promised would be ‘permanent’ now has an expiration date set for the year 2039.”
Criticism of “Generational Capital”
IG Metall views the new “generational capital” as a step into the unknown. Urban: “Generational capital does not make old-age security in Germany any more secure. It is a credit-financed gamble on uncertain future returns. Generational capital exposes pensions to greater risks from the financial markets.”
Further Reform Needed Toward a Solidarity-Based Insurance System for the Working Population
According to IG Metall Executive Board member Urban, there is still much work to be done to achieve a solidarity-based and future-proof pension system: “It won’t work without the introduction of an employment-based insurance system, flexible retirement options, and an adequate level of coverage.” IG Metall is therefore calling for the restructuring of the statutory pension system into a solidarity-based employment-based insurance system that also includes the self-employed and civil servants.
Employer representatives should not shirk their responsibility by calling for lower contribution rates. Urban: “Moderately higher contributions are definitely better than privatizing the costs of an aging society.”
IG Metall rejects discussions about raising the retirement age. “That is completely detached from the realities of work and the burdens faced by employees,” said Urban. According to Urban, especially in times of profound upheaval and economic crisis, the welfare state is called upon to fulfill its promise of social security.
IG Metall’s pension plan: igmetall.de/rentenkonzept
