GroKo compromise: Before the basic pension, the income is checked – domestic policy


In the months-long dispute over the basic rent, the federal government has agreed on a concept with an income test instead of the controversial means test.

CDU leader Annegret Kramp-Karrenbauer said: "We have smashed a big knot in this coalition." It was a "good and acceptable for the CDU solution." She said that a "comprehensive income determination and income test" was agreed. However, she did not speak of a means test.

► Exactly this was the point of contention for months: In the coalition agreement, the SPD and the Union had agreed that only those who received a basic pension would really need it. This should be guaranteed with a means test. The SPD wanted to top up all mini-pensions; The Union argued that the pension supplement would be given to those who do not need it for different reasons.

▶ ︎ After a good seven hours sitting on Sunday, the agreement is reached. In the paper that BILD exists, it says: To get the basic pension, a "determination of the need" should take place. "For this purpose, a comprehensive income test takes place. There is an income tax allowance of 1250 euros for single persons and 1950 euros for couples. "This amount corresponds to the upper limit up to which the basic pension is paid.
The coalition decision states that "the basic pension should be unbureaucratic". "The income reconciliation is automated and citizen-friendly through an exchange of data between the pension insurance and the tax authorities."

Read here the decision of the Grand Coalition with all details (pdf).

CSU boss Markus SOder: "The cow is off the ice – I'm relieved." He spoke of the cost of the basic rent between one and 1.5 billion euros. Between 1.2 and 1.5 million German pensioners would benefit from the reform.

The SPD interim boss Malu Dreyer called the land rent a "social policy milestone" and spoke of a "strong women's political signal". According to Dreyer, four out of five recipients of the basic pension will be women.

The income test should be possible through the cooperation of pension insurance and financial management. Thus, the additional bureaucracy for the audit should be limited.

The topic is not quite through, because CDU chief Annegret Kramp-Karrenbauer must present the decision on Monday to the CDU presidium and board. From the CDU came in advance the fiercest criticism of the now adopted variant.

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