GroKo decides basic pension: The details of the agreement at a glance – Politics

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The coalition has settled its dispute over the basic pension. After long negotiations, they broke through a thick knot and found a solution acceptable to the CDU, said CDU chief Annegret Kramp-Karrenbauer on Sunday in Berlin after the agreement of the coalition committee on rules for a ground rent.

Kramp-Karrenbauer called the compromise in the dispute over the basic pension as an important contribution in the fight against old-age poverty.


SPD calls agreement "social policy milestone"

Access to the new system will get the one who has a need, said Kramp-Karrenbauer. This need is ensured by a comprehensive income test. "It's a good, a justifiable result," she said. She will present the compromise on Monday to the CDU committees for decision.

SPD interim chairman Malu Dreyer spoke of a "social policy milestone." CSU boss Markus SOder pointed out that it had managed to cover the cost of the basic pension to less than two billion euros. He also called for stopping the debates about a possible end to the GroKo.

The cornerstones of the basic pension at a glance:

  • From January 2021 onwards, low-income earners with 35 years of contributions in particular will receive a pension supplement above the basic security.
  • The income test enforced by the CDU is to be carried out by Deutsche Rentenversicherung in cooperation with the tax authorities.
  • The income limit should be for singles 1,250 euros, for couples, it should be 1,950 euros.
  • The financing will be largely financed by a planned financial transaction tax and the Federal Ministry of Labor.
  • In addition, a budget for allowances for housing subsidies of 80 million euros will be provided. So you want to prevent the increased pension eats the need for housing money.

In addition to the compromise on the basic pension, the GroKo approved that unemployment insurance contributions for a limited period by 0.2 percent are lowered. In addition, a funded future fund for up to 10 billion euros will be provided.

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Compromise on basic pension: Government agrees on income test

It is the third attempt for such a minimum pension in three legislative periods. Federal Labor Minister Hubertus Heil (SPD) had already presented a first proposal in February. Another socialist push in May said that up to three million retirees could benefit, 80 percent of whom were women. According to Malu Dreyer, the basic rent will reach between 1.2 and 1.5 million citizens.

The basic pension was agreed in the coalition agreement and was originally intended for a property audit. There had been controversy over that for months. Originally, an agreement was to be reached almost a week ago.

FDP speaks of horse-trading, left called the compromise as cynical

Criticism comes from the opposition. Johannes Vogel, Secretary General of the FDP in North Rhine-Westphalia wrote on Twitter that the Union had agreed to a horse-and-buggy.

Allegedly, the "will to party-political face preservation is greater than the political force for a good model against old-age poverty."

The left also showed disappointment. Dietmar Bartsch, chairman of the left-wing parliamentary group in the Bundestag tweeted: "For e-cars, there are lush purchase premiums with the watering can and the ground rent Looks the coalition into the purse's wallet ".

In parts of the SPD, the stance of the coalition partner CDU on the issue of means test was criticized. Holger SchrOder, chairman of the SPD local association Muhlhausen criticized that mother's pension and e-car allowance would be granted without conditions, the Christian Democrats in the pension but act stingily. "Finally give the 3.2 million retirees a perspective," he said. In Germany, nearly twenty percent of all pensioner households are considered at risk of poverty and live in the month of less than a thousand euros.

Gert Wagner, member of the pension commission, told the Tagesspiegel: "For me personally, this is not a compromise, but a clever solution. Lifetime performance is recognized, but it also takes into account the income levels in which someone lives, without the bureaucracy being exaggerated. Whether the threshold of 35 years of insurance required to obtain the basic pension is also smart is certainly not only an open question for me. " (Dpa / AFP, Tsp)



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