The Social Welfare Association VdK Deutschland has sharply criticized the planned cuts targeting supplementary pensions for caregivers who are in retirement, as part of the ongoing debate surrounding care reform. According to VdK President Verena Bentele, if the federal government proceeds with abolishing this type of pension, it will negatively affect individuals who have provided invaluable unpaid home care to their family members. Bentele emphasized that caring for relatives involves significant financial and psychological stress, making the elimination of the phased retirement option fundamentally non-solidary.
Bentele expressed skepticism toward the government’s justification, which posits that the supplementary pension system represents a legislative loophole that needs to be closed. However, the VdK contests this, noting that this provision has been a practiced reality for years and is already taken into consideration by both the association and the pension insurance system during consultations.
Furthermore, the association found the government’s motivation-driven by the desire to save money through this regulatory change-unconvincing. The association leader stated that the projected savings of approximately 150 million euros, achieved by abolishing the supplementary pension for around 39,000 retirees annually, are too minor. She added that the proposed reduction in care services will disproportionately affect the socially vulnerable and ill.
Bentele offered constructive alternatives, suggesting that the care insurance system could be structurally improved by merging the private and statutory insurance schemes. This integration would allow costs to be borne in a more unified and equitable manner by all insured individuals.
The VdK also demands that the contribution assessment ceiling for care insurance be raised to match the level set by the statutory pension insurance. This measure, the association argued, would ensure that higher earners contribute more substantially to the common good.
In addition, the federal government must provide a tax subsidy to the care insurance fund to cover various societal costs currently borne by care recipients or within the care fund itself. These costs include the retirement contributions of caregivers and the training expenses for care professionals. Crucially, the federal budget must also quickly reimburse the care insurance fund for its €5.2 billion expenditure related to the COVID-19 pandemic.
Regarding the specific legislative changes, it must be noted that currently, pensioners can continue to accumulate pension points by forfeiting just 0.01% of their existing pension. The new Care Act introduces a measure that supposedly limits the care insurance’s capacity to provide these “unintended design opportunities” for pension contributions starting January 1, 2027. However, this limitation applies only to individuals before they commence receiving their retirement pension and reach the legal retirement age, meaning that early retirees should not see any changes.
