Pensions Pension Commission threatens failure.

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Status: 02/14/2020 11:49 a.m..

The Federal Government’s Pension Commission is to work out proposals for the future of retirement provision. The final report should be ready by mid-March – but one member of the group is now dampening expectations of the results.

The “Pension Commission Reliable Generational Contract” has been meeting on behalf of the Federal Government since summer 2018. The group of politicians, scientists, employers and trade unionists is due to present their final report on the future of retirement from 2025 by March 10th. According to media reports, however, the body is threatened with failure.

As the “Frankfurter Allgemeine Zeitung” writes, the commission members have not yet been able to agree on a common line. A two-day retreat at the beginning of February did not bring any decisive progress. According to the “FAZ” information, the members found it difficult to agree on a common base of numbers and data.

Labor Minister Hubertus Heil wants to stick to the retirement age of 67.

Frustration with “political thinking bans”

At a pension conference of the Evangelical Academy in Tutzing, Commissioner Axel Börsch-Supan was frustrated. “Better not expect anything,” said the Munich economics professor, according to “FAZ” and “Spiegel”. So far, no information had leaked out from the meetings, and the committee had decreed that it had not been disclosed since it was constituted.

The commission had “dug too many pitfalls for itself,” said Börsch-Supan, according to the reports. “The prohibition of thinking about pension policy restricts the scope for discussion so that one can no longer move.” He himself advocates a dynamic age limit based on increasing life expectancy, but the standard age limit is “so hot that politicians from all parties shirk it”. Above all, the requirement of Federal Labor Minister Hubertus Heil (SPD) not to shake the retirement age, which will increase to 67 by 2031, provides little leeway, as does the pension at 63, the expansion of the maternal pension and the planned basic pension.

Another point of contention is the question of the security level of the statutory pension, according to the “Spiegel”. Until 2025 it is stipulated that the pension level should be at least 48 percent, while the contribution rate must not exceed 22 percent of the gross wage. Börsch-Supan called this double “stop line” “a big mistake”.

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