Dagmar Schmidt, the SPD Deputy Parliamentary Group Chair, has defended the decision to postpone the new capital pension until the following year. Speaking to the “Handelsblatt” (Thursday edition), she emphasized that while speed is important, thoroughness takes precedence when dealing with a generational project of this magnitude.
This discussion follows an announcement by Chancellor Friedrich Merz (CDU) that the major pension reform, intended for the cabinet to approve before Christmas, would reportedly only include “key principles” for the capital pension. The detailed implementation of this component is slated to be drafted in a separate law in 2027.
Schmidt stated that managing a multi-billion euro capital reserve would necessitate the creation of “completely new structures for investment, management, and supervision.” Furthermore, she stated that the procedures of the German Pension Insurance must be adapted to ensure that contributions, accruals, and eventual benefits are managed legally, reliably, transparently, and in the best interests of the insured.
However, Pascal Reddig, the Chairman of the CDU’s “Young Group,” criticized the delay, arguing that the capital pension requires a full law, not just a declaration of intent. He asserted that it should be included as a binding element within a unified legislative package alongside the other recommendations from the pension commission. Although technical details may follow, Reddig insisted that fundamental policy decisions should not be postponed.
Reddig also raised the issue of funding, insisting that since the capital pension requires additional contributions, the contributors must be relieved of financial burdens elsewhere. Consequently, he demanded that the abolition of the “retirement at 63” program be included as part of the overall reform package.
