SoVD Backs Union Pension Plans over Government Draft, Demanding Stronger Security for Vulnerable Workers
Economy / Finance

SoVD Backs Union Pension Plans over Government Draft, Demanding Stronger Security for Vulnerable Workers

The German Social Association (SoVD) strongly favors the proposals put forward by the DGB Retirement Commission over the package offered by the Government Commission. Michaela Engelmeier, the chairman of the SoVD, told media outlets that a reliable pension requires a clear guarantee of benefits, arguing that the DGB commission provides crucial momentum and aligns much closer with their views than the government commission does. She specifically noted that the expansion of the insured circle, improvements to the basic pension, and a tax-free allowance within basic security were steps in the right direction.

However, Engelmeier indicated that the proposals are insufficient in several areas. She commented that the ensuring of a satisfactory standard of living through statutory and occupational pensions still falls short of the standard expected for the statutory pension. Furthermore, while opposing an increase in the retirement age, she stressed the need for greater social protection for individuals facing health difficulties, stating that those who are unable to work due to health issues must have a socially secured path to retirement.

Regarding the debate over the pension without deductions, the SoVD’s chairman stated that the proposed option to retire at age 62 after 35 years of employment with reduced deductions would be a significant improvement. The DGB, meanwhile, insists that similar provisions must be made for individuals who experience functional impairments.