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Draft law: Union doubts the affordability of the basic pension

2020-01-17T08:40:22.284Z

The Minister of Labor's bill already provides for the basic pension from 33 years of contributions. The Union has financial and constitutional concerns.



After presenting a draft law on basic pensions, the Union asked the coalition partner to clarify the financing. According to its labor market and social policy spokesman, the Union faction is on a basic pension. "Until the cabinet decision, however, their funding must also be clarified," said Peter Weiß (CDU). So far, this has not happened.

Fewer contribution years required

The Federal Ministry of Labor gave a bill on basic pension to the vote within the federal government on Thursday - after the leaders of the CDU, CSU and SPD had agreed on key points in November. The pension supplement is intended to increase mini-pensions for low-wage earners if they have paid into the pension insurance scheme long enough. The coalition had actually agreed on a 35-year contribution period as a minimum requirement. However, a sliding zone is now proposed in the new draft, starting at 33 years. The new supplement, which is due to be introduced in 2021, is expected to benefit more seniors than originally planned.

According to the draft by Federal Labor Minister Hubertus Heil (SPD), the basic pension should be financed entirely from tax funds, including the planned European tax on share purchases. However, there is still no draft for this. Heil's party and cabinet colleague, Federal Minister of Finance Olaf Scholz, had presented his plans at European level. Other countries still have to move along. The Ministry of Labor expects the basic pension to cost around 1.4 billion euros in the first year.

Disadvantage for married couples?

This is one of the reasons why Weiß criticizes the design. "The current plans for a financial transaction tax are not fully developed and their implementation in the European context is not yet foreseeable," said the Union Group's labor and social expert. It must be guaranteed that such a tax spares pension assets and small investors.

"In addition, as a CDU / CSU parliamentary group in the Bundestag, we also have questions about the proposed amount of eligible income," said Weiß. According to the draft, only those whose monthly income as a pensioner is no more than € 1,250 for single people and € 1,950 for couples should receive the full pension premium. The Union faction will pay close attention to ensuring that only people receive the basic pension that they really need, White said.

There are also constitutional concerns about the draft in the Union. For example, the income of spouses should also be taken into account in the income check. In contrast, this test does not take place for unmarried couples in one household. This could make it more difficult for married couples to receive a basic pension and would unduly be worse off. "The draft law does not meet the agreed conditions," Union Group Vice Carsten Linnemann told Focus. "With this proposal, pensioners with high incomes would now also receive a basic pension supplement in addition to those with high wealth."

Source: zeit

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