After months of negotiations, the Federal government launched on Wednesday the draft law for a pension on the way. From 2021 to around 1.3 million recipients of small pensions should get a premium. The first 1.3 billion euros to the cost of the basic pension, to be financed with tax funds.
According to the draft, there should be an entry-level range of 33 to 35 years of employment in a lower basic pension Supplement will be paid. There is no means-testing. Possible capital income would be taken into account in the Income assessment comprehensive.
expert: the basic pension does not help against old-age poverty
The basic pension is a prestige project of the SPD. The previous government had failed with a similar project. The experts of the Ifo Institute, can detect only in party political terms, a meaning behind the project. “The introduction of the basic pension in its present Form can actually only by the fact that in order for the coalition for peace is to be preserved,” said Joachim Ragnitz, Deputy head of the Dresden branch of the Ifo Institute.
For the elimination of poverty in old age, however, you could make “due to construction” only a minor contribution. Of the most vulnerable people, “namely those with less than 33 years of contributions, or long periods of unemployment, continue to have no entitlement to basic pension,” said Ragnitz more. “Here it would have been better solutions, such as the introduction of a percentage free amount of basic security in old age.”
“pension is converted into an Instrument of social policy,”
The solution leads, however, to the fact that the connection between contribution payment and pension will undermine respect. “The organization of old-age security in Germany, away from the basic idea of an insurance. You will be transformed more and more into an Instrument of social policy,“ says Ragnitz. Everything you know about your pension
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Ragnitz of the coalition’s planned income test does not consider helpful: “The income limits are so generous, that of the basic pension, persons will benefit, all of which are not considered to be in need of.”
“Charged to current and future taxpayers” To worry about
is that the number of eligible pensioners will increase in the future enormously and therefore also the cost of the basic pension. “Since the basic pension should only be funded from the Federal budget, charged to the coalition compromise current and future taxpayers. Performance improvements for the pensioners go mostly to the detriment of the working people.“
With his criticism of the Ifo-Institute is by far not alone. The Deutsche Rentenversicherung pointed to a “very high overall compliance costs”. Thus, it would appear that the pension should take over partial tasks of financial management.
Also, the employer and the VdK criticize projects
on Tuesday had expressed the employers ‘ Association, as well as the social Association VdK. Employers President Ingo Kramer said the design concern of serious injustices and bar no precise contribution to the fight against poverty in old age. The planned projects blur the line between contribution-financed pension and need-oriented basic security. The VdK does, however, further action is needed. So disability pensioners would be left out in the rain, said VdK President Verena Bentele.
The government parties to propose such warnings in the Wind. Federal Minister for social Affairs, Hubertus Heil (SPD) spoke of a “socio-political milestone”. Together with the Union, a good compromise had been reached. The basic pension will make the world a fairer place, so healing. For many people, the surcharge would be “significantly more money”. Especially women and people in Eastern Germany would benefit.
Federal Minister of health, Jens Spahn (CDU), said that the law should be bürokratiearm implemented and still target exactly the people who needed the basic pension. Federal interior Minister Horst Seehofer (CSU) called the basic pension as “a component that has been missing in the welfare state”. 1.5 million people could receive basic pension is financed through higher taxes PCP 1.5 million people could receive basic pension is financed through higher taxes
pom/with CBA
