Federal Chancellor Friedrich Merz expects the new Labor Minister Alexander Schweitzer (SPD) to implement the planned reforms quickly. It remains the case that the draft law on pension reform should be passed in the cabinet this year and in the Bundestag in the first quarter of 2027, said the CDU politician at the employers' day of the industry association BDA.
The pension reform was the central point of criticism of Federal Labor Minister Bärbel Bas (SPD), who surprisingly announced her resignation on Monday. There is still no final draft law for the reform. Now her successor Schweitzer has to get the law passed.
The reform has its origins in the recommendations of the Old Age Security Commission, which proposed 33 measures. Three points in particular are still controversial in the coalition:
Pension without deductions after 45 years of contributions
This is by far the biggest sticking point. The expert commission recommends abolishing access to pensions without deductions for those who have been insured for a particularly long time - i.e. after 45 years of insurance. “The exemption from deductions actually leads to higher pensions at the expense of the insured community,” says the recommendations.
The model is often colloquially called “pension at 63” because everyone born before 1953 was able to retire at 63 without any deductions after 45 years of insurance. However, as the retirement age is gradually being raised, the entry date for those who have been insured for a particularly long time is also being pushed further and further back.
The SPD is bothered by the recommendation and would like to at least implement hardship regulations. Schweitzer called for changes back in September and criticized the fact that the proposals of a "professorial commission" meant that people would get less of what they had previously earned. But the pension must be clear and secure. At that time, Schweitzer was counting on changes to the parliamentary procedure - now he has to find a solution to the text of the law himself.
There was also criticism in the CDU. Saxony's Prime Minister Michael Kretschmer pushed for changes in July, pointing out that people in the East had different employment histories, received fewer pensions and were particularly affected by the reform plans. The CDU Prime Ministers Sven Schulze (Saxony-Anhalt) and Mario Voigt (Thuringia) agreed.
The CDU leadership insists on abolition. Merz confirmed the plan at the employers' day: It is neither fair nor could pension insurance and the economy afford it if people who are healthy and fit retire earlier without deductions.
Inclusion of mini-jobs in pension insurance
There is also still a need for discussion when it comes to the topic of mini-jobs. Although mini-jobs are generally required to have pension insurance, it is possible to apply for an informal exemption. The Commission now recommends that marginal employment relationships be included in pension insurance without this so-called opt-out option. There should only be exceptions for school students.
The commission also recommends completely abolishing the special tax and social security status for mini-jobs, because up to now mini-jobbers have also been exempt from other social contributions and income tax. Because that poses a risk of poverty if the jobs become permanent, poorly secured employment, especially for women. The measure is still controversial between the governing parties because parts of the Union in particular criticize the de facto abolition of mini-jobs. CSU boss Markus Söder had already criticized the extensive abolition of mini-jobs immediately after the decision.
Higher age limit for partial retirement
The proposed changes to partial retirement are also still open. The concept means that from a certain age the remaining working hours until retirement can be halved. So far, this has been possible from the age of 55; the commission recommends a minimum age of 58 and an additional link to the standard retirement age.
Up to now, partial retirement can also be taken in blocks - then employees work full-time in the first phase and no longer work at all in the second. The commission recommends abolishing this.
