The proposed reforms to Germany’s occupational pension system, currently being championed by the federal government under the “Act to Strengthen Occupational Pensions” are drawing sharp criticism from the powerful IG Metall trade union. The legislation, intended to bolster pension provisions, introduces restrictions on how legally mandated pension scheme participants can accumulate additional pension points. Critically, the new rules stipulate that these supplementary points can only be accrued from age 50 onwards.
IG Metall’s Head of Social Affairs, Hans-Jürgen Urban, argues that this legislative shift represents a missed opportunity to address a significant disparity. Instead of closing the “equity gap” between individuals subject to mandatory pension insurance and those, such as civil servants, freelancers and the self-employed, who are not, the changes inadvertently exacerbate the inequality.
Urban’s critique highlights the inherent inequity within the system. Currently, those outside of the mandatory insurance bracket can contribute supplemental payments from as early as age 16, effectively accumulating pension credits over a considerably longer period. The proposed law, he contends, entrenches this advantage while restricting the opportunities for those within the state pension scheme.
“We need straightforward and clear regulations that apply equally to everyone” Urban stated to the Handelsblatt. He emphasizes the need for transparency for those contributing, minimal administrative burden for the pension insurance authorities and, most importantly, equitable treatment across all occupational groups. He suggests that a focus on simplifying the system, rather than introducing age-based restrictions, would not only reduce bureaucracy but also improve the overall fairness and perception of the German pension system. The trade union’s position signals a potential political battle, with IG Metall poised to lobby against the current draft legislation and demand comprehensive reform that genuinely prioritizes equity and accessibility for all.