Coalition wants to stick to pension reform – transitional rules for those who have been insured for a long time

The coalition wants to reduce incentives for earlier retirement. But with the reform, transition periods should apply to employees who have paid in for a long time, emphasizes the minister.

Bärbel Bas (SPD): The Labor Minister wants to stick to the pension reform. Photo: Michael Brandt/dpa

Berlin. Federal Labor Minister Bärbel Bas (SPD) is sticking to the planned pension reform, but is promising transitional rules to abolish early retirement after 45 years of insurance. The coalition must implement the pension reform in this electoral period, said Bas on Friday in the Bundestag's budget debate. “Anything else will cost us dearly, lead to pension cuts and massive increases in contributions.”

With a view to the debate about pensions after 45 years of insurance, Bas promised transitional rules. “There will be protection of trust, everyone can rely on that,” said the SPD co-leader.

Bas also advocated for instruments to cushion the loss of jobs in companies during economic restructuring. The coalition will have to discuss “whether we can achieve a socially acceptable reduction in jobs in companies that are under pressure.”

Bas was obviously alluding to the debate about partial retirement. The Pension Commission had proposed abolishing the block model.

The remaining period of employment is divided into two phases of equal length. In the first, the employee continues to work full time; in the second, he is completely released from work. However, business associations want to stick to it because the model does not provide an incentive for early retirement, but is an important instrument for a socially acceptable transformation.

More: Bas praises pension plans as a “complete work of art”