Pension security: This compromise could replace the "pension at 63"

Berlin. New push in the dispute over the "pension at 63": IAB director Bernd Fitzenberger wants to limit the pension without deductions two years before the regular age to those who have worked for 42 years with social security contributions. So far, 45 "contribution years" are the prerequisite for the pension without deductions for "particularly long-term insured persons".

However, according to the German Pension Insurance, not only years with social security contributions are counted. Also taken into account are mini-jobs with contribution payments, childcare periods up to the tenth birthday, civil and military service, as well as care periods and phases with sick pay receipt. If these periods were no longer counted, "the 'pension at 63' would be significantly restricted, but not completely abolished," Fitzenberger told the Handelsblatt.

However, the result would still be "closer to complete abolition than to the status quo". Those who have reached 45 contribution years and actually worked for 42 years could continue to retire without deductions - exactly those "around whom the current discussion is primarily concerned".

Since the coalition has announced that it wants to implement the proposals of the pension commission as a "total work of art", the dispute over the so-called "pension at 63" has been simmering. The pension without deductions after 45 contribution years - whose access age is gradually increasing to 65 years - is to be completely abolished according to the plan of the pension commission.

However, the three CDU prime ministers Michael Kretschmer, Sven Schulze and Mario Voigt from Saxony, Saxony-Anhalt and Thuringia do not want to support this - and are threatening to block it in the Bundesrat. Several SPD heads of government have also announced their veto: Anke Rehlinger (Saarland), Manuela Schwesig (Mecklenburg-Vorpommern), Andreas Bovenschulte (Bremen) and Dietmar Woidke (Brandenburg).

The trade unions have announced massive resistance: they will "defend the 'pension at 63' with teeth and claws", threatened the head of IG Metall, Christiane Benner, in an interview with the Handelsblatt. Most recently, almost 30 percent of all new pensioners received the "pension at 63", and another 25 percent retired with deductions.

It is unclear how many people would have to give up the "pension at 63" under Fitzenberger's proposal. The German Pension Insurance (DRV) stated that no data is currently available on this. The DRV only records the insurance status in the last year before the start of the pension.

Fitzenberger assumes that the data is indeed available in the systems of the pension insurance - after all, the pension claims are based on it. If necessary, the legislator would have to oblige the German Pension Insurance to prepare this information in such a way that it can be used. What Fitzenberger's proposal would actually mean is shown by this example: if a person raises two children within 15 years without gainful employment, cares for their parents free of charge for two years, and exercises a mini-job without pension contributions for five years, they collect 22 contribution years.

Even if they additionally work for 23 years with social security contributions, they would no longer have a chance of a "pension at 63", unlike today.

The time of military service would also no longer be counted - in the West, it lasted until 1990 for 15 months, and civil service even for 20 months. If years with mini-jobs or illness are added, many would no longer be able to achieve the 42 years of social security contributions required by Fitzenberger for the pension without deductions.

In return, Fitzenberger wants to set incentives for continuing to work. He is taking up a proposal by his IAB colleague Enzo Weber: those who continue to work despite fulfilling the prerequisites for the pension without deductions should receive the monthly bonus of 0.5 percent already before reaching the regular age limit.

In addition, Fitzenberger wants to transfer the principle to the pension for "long-term insured persons". So far, insured persons can retire with deductions from 63 after 35 contribution years. In the future, this should only be possible after 40 contribution years - of which at least 38 years with social security contributions.