Coalition compromise: breakthrough in ground rent – Benefit up to 1.5 million

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Berlin. For a long time, the Union and the SPD fought a bitter dispute over the rent – now they agree on a model. The coalition is also forging plans worth billions.

Agreement after months of coalition dispute: Hundreds of thousands of small pensions will receive a basic pension from 2021 onwards.

Between 1.2 and 1.5 million people should receive the pension supplement, as the SPD interim chief Malu Dreyer said on Sunday after a meeting of the coalition committee in Berlin. In addition, investments in digitization and climate protection should be promoted more strongly. The coalition leaders agreed on Sunday after more than six hours of negotiations at the Chancellery.

It was preceded by a month-long dispute over the basic pension. The coalition agreement stipulated that people from the age of 35 years of contributions should be ten percent above the basic security with the supplement after a means test. The compromise deviates from this: a comprehensive income test should take place. This should apply to a tax allowance. The basic pension is to be paid up to an income plus pension and investment income of 1250 euros for single persons and 1950 euros for couples. The income test should be "automated and citizen-friendly" through an exchange of data between pension insurance and tax offices.

The winner is someone who has 35 years of contributions from work, care or education, but has earned little. It was important to the SPD that as many people as possible supplement their low compensation with the basic pension. The key thing for the Union was that it should not be distributed by the watering-can principle. Employment Minister Hubertus Heil (SPD) had originally presented a concept according to which the project cost up to 4.8 billion euros and should benefit three million people. Now, the costs are according to CSU boss Markus SOder at 1 to 1.5 billion euros. This is to be financed exclusively from tax revenue – for example through the planned financial transaction tax.

The basic pension increases the salary points. The pension is calculated using the earnings points – an average earner earns one point per year. For every point, there is currently 33.05 euros pension in the west and 31.89 euros in the east. If, on average, the salary points for the 35 years are only between 0.4 and 0.8, these are now increased to a maximum of 0.8 with the basic pension.

Part of the model is that retirees with basic benefits from 35 years of contributions receive a pension allowance of € 100 plus 30% of the above pension rights up to a certain limit. In addition to the basic pension, the Coalition also wants to introduce an allowance for housing subsidies in the amount of about 80 million euros: The improvement in the pension should not be eaten up by a reduction in the housing allowance.

The package also includes a temporary reduction in the contribution to unemployment insurance: it is to fall temporarily by the end of 2022 from 2.5 to 2.4 percent. But it had already been decided that he would rise to 2.6 percent thereafter.

It also envisages improvements in occupational pensions. For low earners with a monthly income up to 2200 euros gross, the funding amount of a maximum of 144 euros to 288 euros will be doubled. Retirees should also be relieved in the amount of a total of 1.2 billion euros in health insurance contributions. In order to increase the attractiveness of employee share ownership in asset accumulation, the Union and the SPD also want to increase the tax-exempt amount in this area from EUR 360 to EUR 720.

To stimulate investment, the Kreditanstalt fur Wiederaufbau plans to set up an investment fund for future technologies of up to € 10 billion, especially in the areas of digitization and climate technologies.

CDU leader Annegret Kramp-Karrenbauer spoke of an important contribution in the fight against old-age poverty. After a long negotiation, they broke a thick knot. "It's a good, a justifiable result," she said. SOder warned: "In my view, the Halko balance sheet of the GroKo is rounded, and perfectly rounded. From my point of view, there is now no reason to discuss the continued existence. "Dreyer spoke of a" socio-political milestone ". The life achievement of the people will be rewarded. Vice Chancellor Olaf Scholz (SPD) told the German press agency: "Germany gets a basic pension, socially and fairly."

The opposition criticized the planned rent: FDP pension expert Johannes Vogel said she was "at the expense of the younger generation". Green Party leader Katrin GOring-Eckardt demanded improvements in the newspapers of the Funke media group. Thus, the basic pension should be paid after just 30 years of contributions. Left-wing leader Dietmar Bartsch told the newspapers that far fewer people would benefit than originally intended for salvation. The German Trade Union Confederation, the Verdi union and the VdK social association welcomed the agreement.




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