Old-age security: pension package is faltering

A dispute over the abolition of the pension benefit known as the "abschlagsfreie Rente" after 45 years of contributions is taking a new turn. Florian Dorn (CSU), who is among the three Bundestag representatives in the Pension Commission, has cautioned against removing this point from the Commission's recommendations. Three CDU state premiers and the labor wing of the party previously advocated for retaining the pension benefit after 45 contributions.

Known as the "Pension with 63," this benefit currently begins at 64.5 years of age, as it starts two years earlier than the regular retirement age, which is gradually increasing towards 67 years. "The privilege of the abschlagsfreie Rente for particularly long-term insured persons costs the solidarity community, i.e., the contributors and taxpayers, several billion euros annually," Dorn commented.

The abolition of this privilege is described as a "central building block of the overall reform to stabilize the financing of statutory pension insurance." Those who wish to retain it would be setting the basis for the overall reform and, consequently, the stabilization of the statutory pension on shaky ground.