Frei Presses Labor Minister for Urgent Pension Reform and End to Early Retirement Option
Politics

Frei Presses Labor Minister for Urgent Pension Reform and End to Early Retirement Option

In the ongoing debate concerning the future of pensions and the retirement age of 63, Thorsten Frei, the chairman of the CDU parliamentary group, is now putting pressure on Federal Employment Minister Bärbel Bas (SPD). Frei told the “Rheinische Post” that if the reform is to pass the Bundestag this year, Bas must present a draft proposal in the autumn. This proposal, he insists, must follow the recommendations of the Age Security Commission, which includes scrapping the option for retirement at age 63. Frei noted that Bas had agreed to this position herself when the commission’s report was first presented. He stressed that “we need speed, because time is running out.”

Addressing the criticism coming from several state premiers, Frei defended the reform package as a cohesive overall concept. He warned that if any one component were removed, further changes would be required, potentially causing the entire system to “collapse.”

The package also calls for eliminating the tax-free pension status after 45 years of contributions, a measure intended to avert expenditures running into the billions. He questioned the lack of a proposal detailing how such massive savings could be compensated for. When asked if he was open to such a proposal, Frei replied that it would be acceptable provided it was viable and covered the costs. Nevertheless, he acknowledged the substantial effort put forth by the expert commission, which involved highly qualified parliamentarians.