CDU Economic Council Critiques Union’s Proposed “Active Pension” Plan
The CDU Economic Council has issued a sharp critique of the coalition’s plans to introduce an “active pension” for retirees. According to a discussion paper released by the council, reported by the Rheinische Post, a significant challenge lies in the estimated 75,000 retirees who would need to be incentivized to re-enter the workforce to offset the projected fiscal impact, potentially through increased corporate tax revenues.
However, calculations from the ZEW economic research institute suggest a more modest impact, estimating that the plan would only activate up to 15,000 retirees.
The Economic Council expresses concern that the active pension scheme may not effectively target the individuals most needed in the labor market. They argue that a priority should be to eliminate existing early retirement incentives, contending that the combination of financial incentives for early retirement and subsequent efforts to encourage later work is counterproductive.
While generally supportive of measures that encourage participation in the workforce at older ages, the council emphasizes the importance of a cohesive approach. CDU General Secretary Wolfgang Steiger stated before a coalition committee that any measures must be aligned and genuinely benefit willing workers. Given the current budgetary constraints, he added, only initiatives that demonstrably stimulate economic growth can be justified.
The coalition’s plan involves offering tax benefits to retirees who continue working, allowing them to earn up to €2,000 per month tax-free. The stated aim is to alleviate the shortage of skilled workers. The coalition intends to implement the active pension and other measures designed to support workers in the near future. The CDU Economic Council is a CDU-affiliated interest group comprising 12,000 members.