Cabinet approves pension package deal II | tagesschau.de | EUROtoday

In view of an ageing society with an growing variety of pensioners, the federal authorities has initiated a reform. The first hurdle has now been overcome with the cupboard resolution.

The federal authorities has launched the so-called Pension Package II. The cupboard accredited the joint draft invoice by Labor Minister Hubertus Heil (SPD) and Finance Minister Christian Lindner (FDP). This is meant to legally assure that the pension degree doesn’t fall under 48 % of a mean wage within the years as much as 2039.

In addition, a share pension will probably be launched with the era capital demanded primarily by the FDP. From the mid-2030s, that is supposed to alleviate the burden on pension insurance coverage by the proceeds of a 200 billion euro fund financed primarily by loans.

“Sign for Performance equity”

“With the second pension package, we are stabilizing the pension level permanently and creating generational capital to ease the burden on future contributors,” defined Federal Labor Minister Heil. The coalition is thus sending “a clear signal for performance-based justice,” Heil continued.

The pension package deal is a core social coverage challenge of the visitors gentle coalition, with which the SPD desires to implement its election promise of secure pensions. The FDP prevailed with its demand for a transfer in direction of capital funding of the statutory pension. Nevertheless, in current months the FDP specifically has criticized the truth that youthful generations specifically are being burdened too closely.