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Finance Minister Christian Lindner: New pillar for pensions
Photo: Jürgen Heinrich / IMAGO
The German pension insurance reacted skeptically to the plans for so-called generation capital and wants to exclude risks for contributors.
In the future, no contribution funds should be used for generation capital, demanded the President of the German Pension Insurance Federation, Gundula Roßbach.
The traffic light wants to stabilize pensions with the help of stocks.
The money should come from the federal government.
Behind the so-called generation capital is the plan to set up a so-called capital stock as a third pillar within the pension insurance, in addition to contributions and federal subsidies.
This should then be invested in the financial markets.
According to the draft law, the federal government will pay in twelve billion euros this year.
Contributions from the federal government should then be increased by three percent annually - by 2036 this should amount to around 200 billion euros.
The reform plans of Labor Minister Hubertus Heil (SPD) and Finance Minister Christian Lindner (FDP) are intended to gradually create a more sustainable basis for future pension financing.
In addition, the pension level, which links pensions to wage developments, should be kept stable at 48 percent in the long term.
“Whether the contribution rate can be stabilized with the generation capital depends on whether the expectations with regard to investment income are met,” said pension insurance president Roßbach.
In a statement, the pension insurance company pointed out that the contribution from the capital stock also depends on financial market developments and the refinancing costs of federal bonds.
According to the pension insurance, a significant capital build-up and thus a noticeable relief is “hardly to be expected” given the relatively short time horizon.
“Not even if the risks usually associated with stock market transactions are ignored.” These risks should not be borne by the contributors.
The pension insurance warned: "If the payments to the pension insurance planned according to the draft cannot be made from the investment income from 2036, the contributors will have to compensate for this additionally." Contribution funds should not be used directly or indirectly for the generation capital.
In general, Roßbach welcomed the federal government's "clear commitment" to statutory pensions associated with the reform plans.
"However, the contribution target previously provided for in the double holding line, which was intended to avoid excessive demands on contributors, will be abandoned."
mmq/dpa