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Basic pension could be passed at the end of the week

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Basic pension could be passed at the end of the week

NAfter a long dispute, the Bundestag is expected to adopt the better coalition plans to improve low pensions by the end of the week. The Union wanted to agree, although the financing of the so-called basic pension was not yet satisfactory, CSU regional group leader Alexander Dobrindt made clear on Tuesday in Berlin. It is about creating security for the pensioners concerned.

For this reason, one accepts that the funding comes from the federal budget as long as there are no other funding options. With this, the Federal Council could also agree on the coming Friday before the summer break. Dobrindt emphasized that his party had always wanted the basic pension.

The Basic Pension Act is due to start on January 1, 2021. This is intended to improve the pensions of around 1.3 million people with small salaries. The costs are estimated at 1.3 to 1.6 billion euros per year.

Dobrindt criticizes Minister of Labor Heil

The Union was upset that the basic pension should be financed through a tax on financial transactions that was not in sight either in Europe or nationally in the grand coalition between the Union and the SPD. The Union had recently also requested that the project be postponed or put on hold because of the financial burden of the Corona crisis.

But the SPD should not be given the opportunity to cover the summer months with a pension issue, argued Dobrindt. This is the strategic background for the fact that the subject of basic pension is expected to be completed this Friday, despite open financing questions. It was also possible that the Bundestag already dealt with the topic in second and third reading on Thursday.

Dobrindt went to court hard with Minister of Labor Hubertus Heil (SPD). The discussions with Heil about the design and financing had been difficult until the end because all financing commitments had not been met. The 400 million euros announced by Heil from the Ministry of Labor budget have not yet been secured. One cannot be very satisfied with Heil’s work.

Big administrative effort

Even with the financial transaction tax promised by Scholz, there is still no way of knowing that there will be a swift implementation. Dobrindt emphasized that he wanted a European financial transaction tax – but Scholz has not yet made the necessary proposals.

Dobrindt criticized that the administrative procedure for the basic pension was by no means secured. Pension insurance, for example, assumes that it will take until the end of 2022 to process the relevant files. Then you think you have had every file in your hand.

The director of the German Pension Insurance Federation, Stephan Fasshauer, had recently said that people who are already retired and are entitled to the supplement would probably not receive their notices until the end of 2022. Fasshauer also confirmed earlier statements that the basic pension is expected to come only six months after its planned official start. It is a major administrative effort to filter out the almost 26 million pensions for those who could be entitled to the supplement, said the pension insurance.

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