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geändert / updated: 17/04/08

 

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(Pensions; 10-03; p.2)

The situation

When the government-initiated Rürup-commission had presented, which changes it found useful for financing Germany’s social security systems, their proposals were among others discussed.

Another concept has been worked out by the Herzog-commission that has been initiated by the CDU/CSU, the main opposition parties. Their proposals did not find much resonance, however.

While Germany’s health system – that had been discussed in the last months thoroughly and upon which a first level compromise had been reached – accounts for about 14 per cent of the so called extra wage costs, spending on mandatory pensions runs up to about 22 per cent.
(In Germany, almost every employee has to pay into a state-regulated pensions fund; only highly paid employees, entrepreneurs and civil servants, including politicians, do not fall under that ruling.)
The proposals of the Rürup-commission should not but have the effect of not raising this percentage again and again – a rather moderate goal, which all the same caused some grumbling among the citizens.

 

The proposals

The proposals of the Rürup-commission can be centred around four items:
•age-group related fees, i.e. in the future younger ones will have to work longer respectively to gain a share of the pensions fund;
•limitation of the possible payment of pensions before reaching the legal standard age;
•limited adding of work-similar times to the time paid in;
•connection of payments to a pensioners’ quota, i.e. the share of employees to pensioners. (read on here)

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 © Michael Gerke

 
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