Not a Pension Heist, But a Boost for Skilled Workers!

Not a Pension Heist, But a Boost for Skilled Workers!

In a recent controversy, the General Secretary of the Christian Democratic Union (CDU), Carsten Linnemann, has disputed statements made by the parliamentary business manager of the Union’s faction, Hendrik Hoppenstedt, regarding the active pension, a provision in the coalition agreement.

According to Linnemann, the condition for the active pension is the receipt of a statutory pension, not the renunciation of it. In an interview with the Welt and Business Insider, he emphasized that individuals in receipt of a pension can, in addition, earn up to 2,000 euros tax-free by continuing to work, without having to pay contributions to the pension and unemployment insurance funds. Linnemann, who describes himself as the inventor of the active pension, believes this will create additional purchasing power and secure skilled workers.

Hoppenstedt’s earlier statements on the active pension in a Phoenix television program, “Unter den Linden” had caused confusion, with him claiming that the pension fund would be relieved of the burden of the active pension, as the pension payment would not initially be made. He later acknowledged that the concept was mispresented, saying in an Instagram post, “I got lost in the heat of the verbal battle and apologize for the mistake.”

Dennis Radtke, the chairman of the Social Union (CDA), also disagreed with Hoppenstedt’s representation, stating that the first 2,000 euros in addition to the pension would indeed remain tax-free, as agreed upon by the CDU, which had fought for this provision and is now being implemented. Radtke added that the prior ban on pre-employment would be lifted, making it easier for employees to return to their previous employer after reaching the statutory retirement age.

The coalition agreement does not explicitly mention a supplementary income, only stating that the active pension will make working in old age attractive, with those who reach the statutory retirement age and continue to work being able to earn up to 2,000 euros a month tax-free.