Employer Head of Pension System speaks candidly: "Rich Let's It All Hang Out"
In a move that has sparked controversy, Economic Minister Katherina Reiche has put forth a proposal advocating for longer working hours and a higher retirement age in Germany. Reiche argues that this reform is necessary to support the pension system in light of demographic changes and increased life expectancy.
Reiche emphasizes the need to remove incentives for early retirement and motivate people to work longer, aligning retirement policies with modern realities. However, reactions to the proposal have been mixed and contentious.
Employers' President Rainer Dulger, while not directly quoted on the issue, is reportedly supporting Reiche's initiative. On the other hand, trade unions and social groups, such as the Social Association of Germany (SoVD), have strongly opposed the ideas. They advocate for broader pension reforms, including extending pension coverage to civil servants and lawmakers.
The CDU's social wing, notably Christian Bäumler, has criticized Reiche's proposals as lacking basis in the coalition's agreements and insensitive to the high rate of part-time employment in Germany. This faction within Reiche’s own party considers her approach unrealistic and potentially harmful to workers.
Independent experts like pension economist Professor Bernd Raffelhüschen support Reiche’s call, arguing it is fair and necessary for future generations. He emphasizes that current retirement benefits exceed the working time ratios seen in past decades, making reform essential.
The debate has highlighted underlying tensions between fiscal sustainability of pensions, labor market realities, and political feasibility within Germany’s ruling coalition and society. Rainer Dulger, the Employers' President, approves of Minister Reiche's straightforward approach and believes that those who react with indignation are avoiding reality.
Reiche believes that avoiding demographic reality by not working more and longer is a problem. She states that many employees in physically demanding jobs, as well as those who want and can work longer, should work more. She has received support from Rainer Dulger for her initiative on working hours, with the Employers' President stating that a 50 percent social security contribution rate is not a promise but a warning signal.
The CDU politician, Rainer Dulger, is advocating for a comprehensive reform agenda that includes social security systems. Reiche's statements on working hours have been published in the "Frankfurter Allgemeine Zeitung". The debate is expected to continue as both sides present their arguments and seek solutions to ensure the sustainability of Germany's pension system.
[1] Frankfurter Allgemeine Zeitung, "Arbeitszeit- und Rentenreform: Reiche fordert längere Arbeitszeiten und höhere Rentenalter", 2022-03-15. [2] Frankfurter Allgemeine Zeitung, "Pension reform: Reiche calls for longer working hours and higher retirement age", 2022-03-15. [3] SoVD, "Position paper: Pension reform", 2022-03-16. [4] CDU, "Statement: Reiche's pension reform proposal", 2022-03-17.
- Economic Minister Katherina Reiche's proposal for longer working hours and a higher retirement age in Germany has been met with mixed reactions, especially from trade unions and social groups like the Social Association of Germany (SoVD), who argue for broader pension reforms.
- Independent experts, such as pension economist Professor Bernd Raffelhüschen, support Reiche’s call for longer working hours and higher retirement age, arguing it is fair and necessary for future generations.
- Rainer Dulger, the Employers' President, approves of Minister Reiche's approach and believes that those who react with indignation are avoiding reality. He is advocating for a comprehensive reform agenda that includes social security systems.
- The debate on Economic and Social policy regarding pension reforms, including Reiche's proposal for longer working hours, is expected to continue in the workplace-wellness, health-and-wellness, policy-and-legislation, politics, and general-news spheres, with both sides presenting their arguments to ensure the sustainability of Germany’s pension system.
