(de-news.net) – The Bundestag has formally approved the Federal Government’s highly contested pension package, achieving what is referred to as a chancellor’s majority. In the decisive vote held on Friday, 319 deputies expressed support for the legislative proposal, 225 opposed it, and 53 abstained. This outcome followed weeks of intense coalition disputes and reflected the deep divisions within the parliamentary groups. Notably, the Union’s youth faction had categorically rejected any commitment to maintaining the pension level at 48 percent beyond the year 2031.
Ultimately, parliamentary backing was secured for both the continuation of the so‑called safeguard line until 2031 and the expansion of the “mothers’ pension.” Chancellor Merz had previously announced his intention of reaching the threshold of 316 votes, a target that was successfully met, thereby underscoring the government’s capacity to mobilize sufficient support despite internal dissent.
According to the government’s explanation, the bill is designed to extend the current pension level of 48 percent beyond 2025 while simultaneously broadening entitlements related to child‑rearing periods. Officials argued that, without such prolongation, the adjustment formula scheduled to be reintroduced in 2026 would result in pensions falling behind wage developments, leading to systematically slower increases in retirement income.
The legislation stipulates that the safeguard line be extended until 2031, thereby preventing the decoupling of pensions from wage growth during this period. To mitigate financial consequences, the additional costs incurred by the pension insurance system are to be reimbursed through federal funds, ensuring that contribution rates remain unaffected.
A further component of the reform concerns the expansion of child‑rearing credits, which aims to establish full equality by granting three years of entitlement for all children, irrespective of their year of birth. For children born prior to 1992, the entitlement will be extended by an additional six months, bringing the total to three years. The federal budget will assume responsibility for covering the associated costs, thereby safeguarding the financial stability of the pension system.
Additional provisions are included to facilitate the reintegration of retirees into the labor market. Restrictions contained in the Part‑Time and Fixed‑Term Employment Act will be lifted for this group, permitting repeated fixed‑term contracts without justification. This measure is intended to create greater flexibility for older workers wishing to return to their previous employers.
Government representatives cautioned that failure to prolong the safeguard line would lead to a reduction in benefit levels and the cessation of federal reimbursement, thereby undermining the stability of the pension system. The Left Party announced its decision to abstain, framing this as a means of securing pensions for millions of citizens, while both the AfD and the Greens declared their opposition to the package.
Federal Chancellor Friedrich Merz reiterated his commitment to present a far-reaching pension reform in the coming year. He underlined that the Bundestag’s recent resolution should be regarded not as the conclusion but as the initial stage of a broader pension policy agenda. At the outset, a commission of experts is expected to formulate proposals, which the government intends to examine without delay and subsequently introduce into parliamentary deliberation. The coalition committee had already decided the previous week that this commission should be established before the end of the year. The Chancellor conceded that the task would be demanding, while stressing that the welfare state would continue to be designed in a way that is financially sustainable, efficient in performance, and equitable across generations.
Labour Minister Bärbel Bas (SPD) interpreted the chancellor’s majority in favor of the pension law as a reinforcement of coalition cohesion. She argued that securing an autonomous majority was essential for future parliamentary votes involving the Union. Her legislative initiative, aimed at stabilizing the pension level at 48 percent until 2031, had triggered weeks of contentious debate within the coalition. The Young Group in the CDU/CSU faction dismissed the plans as unacceptable, contending that the anticipated billions in expenditure would impose a disproportionate burden on younger generations. For this reason, the coalition’s ability to secure its own majority had long appeared uncertain and was only clarified at the final stage of negotiations.
The chairman of the Junge Union, Johannes Winkel, maintained in an interview that the Bundestag’s decision had not diminished but rather intensified the necessity for reform. Business associations expressed concern that genuine structural changes to the pension system were being deferred into the future. In contrast, the Social Association VdK insisted that the measure would safeguard retirees against losses in purchasing power in the coming years, thereby ensuring social stability during a period of economic uncertainty.
In addition to the aforementioned legal act, the Bundestag adopted drafts concerning the “active pension,” intended to encourage longer employment through tax incentives, as well as measures to strengthen occupational pensions. Should the Bundesrat also grant approval in two weeks’ time, the law is scheduled to enter into force on 1 January 2026.
