Amid the ongoing debate surrounding pension and healthcare reform, and ahead of the Federal Cabinet meeting scheduled for Wednesday, the VdK Deutschland social association has launched a sharp criticism of proposed plans by the CDU Union. The group particularly objects to any measures aimed at diluting the role of the statutory state pension as a fundamental security net.
VdK President Verena Bentele stated that confining the statutory pension solely to a basic safety net would severely devalue it. According to her, crucial components, such as survivor benefits and protection against reduced working capacity, are at risk.
Bentele criticized a suggestion recently put forward by Federal Minister Friedrich Merz (CDU)-who had reasserted this idea at a banking association event earlier in the week-calling it “cynical and unrealistic” given that currently 38 percent of employed individuals cannot afford additional private retirement savings. She argued that Merz fails to acknowledge that many people cannot afford private provisions.
The VdK warned that such a step would significantly raise the risk of poverty in old age, especially for individuals with low to middle incomes, but also for those who spend long periods engaged in caregiving or facing unemployment. Bentele stressed that the statutory pension must remain the strong foundation of pension security; while private savings can complement it, they must not replace it.
Previously, Merz had suggested that the state pension insurance would eventually only serve as a basic safety net for the elderly.
Bentele extended her criticisms to several elements of the planned healthcare reforms due to the looming Cabinet meeting. Rejecting the abolition of free co-insurance, she called it a clear expression of lived solidarity and a core pillar of the German welfare state.
Addressing the financial concerns of the statutory health insurance (GKV), Bentele insisted these must be resolved through collective effort. Therefore, the VdK demands a fairer inclusion of high incomes. She suggested that adjusting the contribution assessment ceiling for the GKV to match the level used for the pension insurance would be a “strong signal” allowing those who have more to contribute more to the GKV solidarity system.
Regarding the shortfall in health costs for recipients of social assistance (Bürgergeld), Bentele argued that the federal government must finally reimburse these costs, and that the necessary funds should be secured through a more equitable tax policy.
Finally, Bentele criticized Health Minister Nina Warken’s (CDU) plans that involve cutting sick pay (Krankengeld). The VdK categorically rejected this move, arguing that it would disproportionately affect people with chronic illnesses and low incomes. Instead of aiming to save money on sick pay, she stated, the focus must be on maintaining healthy workers, necessitating increased prevention measures and comprehensive care services.
The draft law, based on a recommendation from an expert commission and slated for consideration by the Cabinet on Wednesday, still contains multiple controversial points.
