Green Party Proposes 'Guarantee Pension' Reform
The Green Party has introduced a series of proposals aimed at reforming the pension system, including the establishment of a 'Guarantee Pension' funded through a dedicated fund. As the first election programs for the upcoming early federal elections in February 2025 emerge, the CDU has hinted at a surprise for retirees concerning the 'Pension at 63' policy. In contrast, the Greens are advocating for the inclusion of civil servants in the pension insurance system.
Among the key points in their draft election program, the Greens align with the Social Democrats in advocating for the stabilization of the pension level at 48% of the average income. They emphasize the need to support individuals with lower incomes, stating their intention to evolve the current basic pension into a more inclusive Guarantee Pension after 30 years of contributions. This initiative aims to benefit a broader segment of the population who have contributed to the German Pension Insurance but still receive minimal benefits in retirement.
The basic pension is designed for those who have worked for an extended period and paid into the pension system, yet find themselves with insufficient retirement income. Eligibility for this supplementary benefit requires at least 33 years of qualifying periods.
To finance this Guarantee Pension, the Greens propose utilizing returns from a Citizens' Fund. This fund is envisioned to be created from loans and federal resources, with investments aimed at European and German startups and growth companies. The party further emphasizes the need to enhance support for individuals who can no longer work due to health issues after long-term contributions to the pension system.
Additionally, the Green Party aims to improve the disability pension. They intend to maintain the 'Pension at 63' for long-term contributors, particularly benefiting those who have faced physically demanding jobs for decades and are nearing their limits.
While the Greens support the continuation of the retirement age at 67, they also propose creating incentives to encourage individuals to work beyond the standard retirement age. This includes offering more flexible paths to part-time retirement and making it more financially rewarding for individuals to continue working while receiving pension benefits. The party suggests that the employer contributions to unemployment and pension insurance could be paid directly to employees who opt against voluntary contributions to the pension scheme.
Furthermore, the Greens are advocating for reforms in part-time retirement policies and aim to integrate members of parliament and potentially civil servants into the statutory pension system. They also seek to include self-employed individuals who lack other forms of pension protection.
In summary, the Green Party's pension reform proposals reflect a commitment to creating a more equitable and sustainable pension system that supports those who have contributed significantly to the workforce while also addressing the needs of vulnerable populations.
