Civil Servants Warn Against Pension Cuts
Economy / Finance

Civil Servants Warn Against Pension Cuts

The leadership of the Civil Servants’ Association and Tarifunion dbb, Volker Geyer, has cautioned the current German government coalition against implementing cuts to pensions or retirement benefits as part of ongoing social reforms.

Speaking to Funke-Mediengruppe newspapers, Geyer emphasized that any reduction in either pensions or retirement provisions would be a misstep, stating that current entitlements are the result of long-standing efforts. He suggested that a fundamental restructuring of the civil servant system isn’t necessary, citing the system’s inherent stability. Instead, he called for the government to commit to establishing legally binding reserves specifically to ensure the secure financing of pensions.

Geyer expressed confidence in the government’s ability to undertake necessary reforms to social security funds, acknowledging public doubts about the state’s capacity for action. He believes the coalition is capable of demonstrating its effectiveness provided it addresses its stated goals through cohesive and constructive collaboration.

When questioned about potential contributions from the civil servant sector towards fiscal savings, Geyer deferred to ongoing commission work, referencing the anticipated release of their findings. He also dismissed a recent proposal from the Social Democratic Party advocating for the integration of civil servants into the statutory pension insurance system, citing expert consensus that such a move would be ineffective, potentially increasing the number of benefit recipients.

Geyer underscored the distinct nature of the civil servant pension system, emphasizing its independence from the statutory pension insurance. He further rejected the suggestion from the Council of Experts – proposing integration into the statutory system alongside an additional occupational pension – arguing that it would be a more expensive solution that fails to resolve underlying issues within the statutory pension system.