Constanze Janda, Co-Chairwoman of the Pension Commission, described the recommendation to eliminate the option for a tax-free retirement pension after just 45 years of contributions as central to the reform. Speaking to the “Tagesspiegel”, she stressed that this issue is far more important than others; if asked which of the 33 recommendations was the least critical, the pension abolition would be the absolute last one considered.
Janda emphasized that the measure is “truly central” because this specific type of retirement pension costs billions of euros every year, and that money is urgently needed for other purposes. She asserted that this pension scheme is fundamentally unsustainable and must eventually be abolished, whether by the current commission or a future one. Currently, the younger generations are bearing the cost of this system.
Regarding the ongoing political debate, Janda expressed strong frustration, criticizing policymakers for making the issue too simple. She deplores the idea that politicians might simply let the status quo remain because some voters feel the current system is unfair, calling this approach highly unreflective. In her view, the 45-year pension scheme does little good for the people it was intended to serve. Instead, the broader workforce effectively subsidizes the early retirement of more financially secure office workers. While the financing of the new, capital-backed retirement pillar is set to require two additional contribution points, this reform cannot succeed if the exception pension continues to absorb billions.
Concerning specific exceptions, Janda clarified that the commission has designed a new retirement type specifically aimed at individuals who are legitimately unable to work until the official retirement age due to health issues. Under this revised model, contributors would genuinely benefit, unlike the current system. Furthermore, the commission acknowledged the need for a transition period when abolishing the special pension, proposing that five years would be a realistic timeframe.
