(de-news.net) – The government’s comprehensive pension package, having first secured approval in the Bundestag and subsequently in the Bundesrat, is now set to take effect at the beginning of the year. At the heart of the reform lies the extension of the so‑called ‘Haltelinie,’ a mechanism designed to maintain the pension level at 48 percent of average earnings until 2031. This safeguard ensures that retirement benefits remain closely linked to wage developments and do not fall behind broader income growth. Officials emphasized that, without such a provision, the standard adjustment formula scheduled to resume in 2026 would have led to a gradual decline in retirement income, since pensions would have risen at a slower pace than wages. To prevent contribution rates from being destabilized, the additional financial burden on the pension insurance system is to be reimbursed directly by federal funds.
Another major component of the reform is the expansion of the ‘Mütterrente.’ Under the new rules, three full years of child‑rearing time will be credited in pension calculations for parents who raised children born before 1992. Legislators explained that the measure is intended to establish complete equality in the recognition of parental years, regardless of the child’s date of birth. The federal budget will assume responsibility for the resulting expenditures, thereby ensuring that the costs do not fall on the insurance system itself.
The political debate preceding adoption was marked by weeks of contention within the Union parties. Younger members expressed strong reservations, warning of significant long‑term fiscal consequences and even threatening to block the measure in the Bundestag. Despite these objections, the package ultimately achieved majority support, reflecting a consensus that the reforms were necessary to secure the stability of the pension system.
A further innovation is the introduction of the ‘Aktivrente,’ which is intended to encourage continued employment beyond the statutory retirement age. The government has argued that this measure will help counteract labor shortages by allowing retirees to earn up to 2,000 euros per month tax‑free in dependent employment. Complementary amendments to labor law will also remove earlier restrictions, permitting older workers to return to former employers under fixed‑term contracts without requiring specific justification. This change is expected to create greater flexibility for both employees and employers in managing workforce needs.
Finally, the Bundesrat endorsed a second legislative initiative aimed at strengthening occupational pensions. The measure seeks to broaden access to supplementary retirement benefits through workplace programs, thereby enhancing the overall resilience of the pension system.
