As the pension commission commissioned by the federal government prepares to present its recommendations for reforming the pension systems, the union Verdi is calling for the stabilization of pension levels beyond the year 2031.
Frank Werneke, the head of Verdi, told reporters from the Funke media group that over half of workers in Germany do not have any other form of old-age security besides the statutory pension insurance. He emphasized that in Eastern Germany, this percentage is even higher, reaching three-quarters of the population, making the stabilization of the pension level past 2031 a matter of critical importance.
According to Werneke, diverting a portion of contribution income to build a private capital buffer outside the statutory system is a flawed approach. He insists that all contribution revenues must remain available to support the stabilization of the pension levels. Instead, he advocates for strengthening the occupational pension scheme (bAV) as a second capital-backed pillar. He deems a mandatory occupational pension provision necessary for all employees, regardless of whether they work in small or very small businesses, and stresses that this must include “sufficiently high employer contributions.”
Werneke also pointed out that individuals who become unemployed after their late 50s often have no viable prospects in the job market. Against this backdrop, the union leader argued that any increase in the retirement age is nothing more than a hidden pension cut.
