(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.
Should the Bundesrat also grant approval in two weeks’ time, the law is scheduled to enter into force on 1 January 2026. The parliamentary vote was preceded by protracted and heated debate within the Union, where younger deputies had threatened to reject the measure due to the anticipated multi‑billion‑euro costs associated with maintaining the pension level.
