The Bundestag has decided to make a backup of the level of Pensions and an increase in the mothers ‘ pension. With the votes of the CDU and the SPD, the law passed the Parliament, previously, the SPD had campaigned-Chairman Andrea Nahles. The statutory pension must be strengthened, instead of relying too much on private pension provision. “The state pension is superior to the private,” said Nahles in the German Bundestag before the vote. Why the young Generation should pay for decades of contributions in a private Pension, if she could not be sure what get you in the end, she added.
The decisions, and more justice, and more bring “in Germany,” said Nahles. “We secure the pension at the current level.” This government will deliver, and taking in addition, a fundamental change of direction in pension policy. “The state pension should remain the Central pillar” in the old-age pension, said Nahles.
An additional private pension is a good thing, “if it was in addition meant to be” and the state pension should not replace. “Who is working for a lifetime, deserves a pension he can live with that,” said the SPD Chairman. “Pension is not a charity or a luxury.”
mothers ‘ pension, a cost of 3.8 billion Euro.
For the level of pensions and contributions into the pension Fund, a so-called double, it is planned to hold the line. The level describes the ratio of pension to wages, not to decrease, by 2025, under 48 percent. The contribution rate – today, 18.6 percent – is expected to rise to 20 per cent of the income.
the extension of The mothers ‘ pension, a cost of 3.8 billion Euro per year. It is planned to have a stronger accreditation of education times prior to 1992, children born. The concerned pensions are increased for each child 16,02 Euro gross in the West, and to 15.35 Euro in the East. The advanced mothers ‘ pension, is likely to engage in Neurenten, starting from January 2019. The pensions in payment are likely to be starting in March increased, however, the surcharge is to be paid then.
the move has been Criticised by the FDP as in the long term is not financially viable. Through the reforms, the high cost to come, especially on the later generations. The FDP’s pension expert John bird presented to the government the assessment, delivered by an expert of their own pension Commission to the law: “Very serious, expensive, unfair and short-sighted. No significant impact on the risk of rising poverty in old age, for there is far more targeted solutions.” The sustainability of the pension system will be put at risk.
employers ‘ associations and the German taxpayers had criticized the pension plans. “Alone, by 2030, the draft law proposed measures would lead to additional expenditure of 75 billion euros for the statutory pension insurance,” write the employers ‘ associations. A commitment to keep up to 2025, the pension level of 48 percent, could cost tens of billions if the economy worsens. The pension measures, additional costs of 50 billion euros by 2025, there would be a Pure wooden nail, President of the taxpayers Association said.
