Despite negative consequences: “good reasons” for east-west pension adjustment

Actually, Labor Minister Andrea Nahles (SPD) is currently working on a holistic pension concept. Nevertheless, this week she had time to present in Schwerin her draft for the East-West pension adjustment. The project with the cumbersome name pension transfer graduation law is overdue, but with disadvantages for employees connected.

In 2020, it should finally be ready: Pensioners in the East should get as much age benefits as seniors in the West. Because in two steps, Labor Minister Nahles wants to adjust the pension value of the new federal states to the western level . Currently, the east is 94.1 percent compared to the west. A salary point corresponds to 28.66 euros in the East and 30.45 euros in the West. With the planned pension adjustment, the pensions in East Germany to 1 January 2018 “by 50 percent of the difference existing at that time,” reports the Schweriner Volkszeitung. Two years later, on 1 January 2020 , the final alignment will follow.

However, the coalition partner CDU / CSU and, most importantly, Finance Minister Wolfgang Schäuble (CDU) must be persuaded to realize the East-West pension adjustment. Because the adaptation of the Ostrenten becomes costly. 7.5 billion euros are needed for this in the first three years, according to Nahles. This sum should be covered by the federal government and not by the pension fund.

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Pension unit: Pension adjustment has negative consequences for young workers

Nahles’ roadmap to implement the pension adjustment is tight. At the end of August, the draft will be dealt with in the Federal Cabinet . However, the minister blows headwinds in the face. Because not only the financing of the costs could become a problem. In addition, the East-West pension adjustment threatens disadvantages for East German workers. Wages in the East are currently being upgraded for pension calculation. If the pension value rises, in return the higher valuation shall be abolished. However, since the east wages will continue to be lower than in West Germany, the claims will be lower in the long term, especially for young employees. According to the current situation, a 30-year-old today would receive a pension of around 880 euros per month after 45 years of working age without average salary. With approximation, it is only 848 euros, according to the Ifo Institute Munich.

Nahles admits that her draft pension transition law has ” ambivalence “. But “the bottom line is that there are many good reasons to create equal rights for everyone after 30 years in this important social security branch.”