The German Institute for Economic Research (DIW Berlin) has criticized the push by the German Trade Union Confederation (DGB) and Finance Minister Lars Klingbeil (SPD) to make occupational pension schemes mandatory for all employees in Germany.
Marcel Fratzscher, President of the DIW, told the Funke Media Group newspapers that while strengthening occupational pensions is fundamentally right and desirable, a mandatory implementation is the wrong approach. According to Fratzscher, many companies, particularly small and medium-sized enterprises (SMEs), simply cannot absorb additional costs in the current economic climate.
The economic scientist argued that the federal government should not repeat the mistake of shifting necessary social policy improvements onto businesses without taking sufficient responsibility itself. Instead of mandating schemes, he suggested that solutions should focus on improving incentives, simplifying procedures, and providing financial aid through the state. Furthermore, he emphasized that strengthening the statutory pension must remain the highest priority.
The debate intensified shortly before a planned reform summit at the Chancellery, following recent efforts by the DGB leadership. Yasmin Fahimi, head of the DGB, had recently highlighted that approximately 20 million employees lack an occupational pension and demanded a mandatory pension scheme for everyone. Finance Minister Lars Klingbeil supported this proposal during an appearance on ARD on Monday evening.
