Stabilization of pension levels and equalization of child-rearing periods

The federal government's pension package was approved in the Bundestag. The main vote was on a draft law from the federal government that is intended to stabilize and further develop central elements of statutory pension insurance. The background is that the previous holding line for the pension level (ratio of pension to average earnings) of 48 percent expires at the end of 2025 and without new regulations, the pension level will be reduced. To prevent this, the pension level should remain secured at 48 percent until 2031. The federal government should cover the resulting additional costs so that the contribution rate can remain largely stable. Another key point of the bill is the complete equality of child-rearing periods (also known as “mother’s pension”). Time spent raising children increases the pension by being counted as contribution time and receiving pension points for it. For children born before 1992, the credit period should therefore be extended by another six months to a total of three years - just as for children born after 1992. The federal government should also bear these additional costs. The draft also contains measures to improve the financial stability of the pension insurance, for example through a higher minimum reserve and simplified rules for federal subsidies. In addition, people who have reached the standard retirement age should be able to return to their previous employer more easily in the future. For them, the ban on joining fixed-term employment contracts should be abolished in order to make it easier for them to continue working voluntarily and to relieve pressure on the labor market. The Committee for Labor and Social Affairs has drawn up a recommendation for the draft law, which recommends its adoption. The Budget Committee also presented a report on financial viability. The federal government's draft law to stabilize pension levels and fully equalize child-rearing periods was approved with 318 votes. 224 MPs voted against, there were 53 abstentions from the Die Linke parliamentary group as well as Stefan Seidler (SSW), Nicklas Kappe (CDU) and Konrad Körner (CDU). The following seven MPs from the CDU/CSU parliamentary group voted against the federal government's bill: Johannes Winkel, Yannick Bury, Pascal Reddig, Johannes Volkmann, Marvin Schulz, Johannes Wiegelmann and Nicolas Zippelius.