Pension surpluses should not be squandered

Buntenbach: Pension surpluses are not frivolous

06/22/2011

„The current financial surpluses of the statutory pension insurance are pleasing, but should not be frittered away recklessly. We call on the coalition to use the new scope for the fight against the rapidly increasing poverty of old age“, said Annelie Buntenbach, DGB board member, in Hanover on Tuesday.

According to the current economic forecasts of the Federal Government, a clear reduction of the pension insurance contribution in 2013 seems purely mathematically possible. Under current legislation, the contribution rate to the Statutory Pension Scheme will be reduced if the Sustainability Reserve is expected to exceed the limit of 1.5 monthly expenses.

„Reducing the contribution of employees would be gratifying but should not jeopardize efforts to combat the rapidly increasing poverty of old age“, said Annelie Buntenbach. "It is high time to significantly improve the pension benefits, especially for the millions of low-paid and job-impaired, and to stop the pension at 67."

"If the positive predictions actually materialize, the coalition should also take advantage of the opportunity to spare workers the pension at 67 and the related pension cuts, by renouncing at least part of the contribution reduction“, explained the DGB board member. According to official figures, the contribution effect of the pension at 67 will not be 0.5 percent until 2030 - according to the forecasts of the Federal Government, the contribution reduction would be 0.7 percent (19.2 percent in 2013)..

Buntenbach emphasized that it would not be comprehensible in any way if the coalition lowers the pension contribution excessively and sticks to the pension at 67, because this should prevent a later increase in contributions. The relief from a reduction in the amount of 0.5 percent would amount to around six euros for average earners with a monthly gross income of about 2,500 euros. „However, such a short-term relief is disproportionate to the pension cuts, e.g. by the pension with 67, which amounts to up to 14.4 per cent“, so Buntenbach. (Pm)