July 6, 2020

The great German coalition reaches an agreement to improve the minimum pension

The parties of the great German coalition reached an agreement on Sunday on the improvement of pensions for those workers who, despite having contributed for 35 years, charge a retirement that is equal to or less than the minimum existence determined by law (424 euros -more housing and heating costs-).

Those who did not reach that minimum until now, could complete it by requesting social assistance.

It is estimated that the improvement in the pension, which should be 10 percent above the social assistance that covers the minimum existence, will favor about 1.5 million retirees.

Pensions for this group of workers had become in recent months one of the main points of contention within the Government coalition.

"We have reached an agreement overcoming many difficulties," said the president of the Christian Democratic Union (CDU), the party of Chancellor Angela Merkel, Annegret Kramp-Karrenbauer.

Already in the coalition agreement, the Government had set one of the goals for the Government to ensure that retirees who had worked for a long time, although with low incomes, had pensions higher than social assistance.

The Christian Democratic Union (CDU), the party of Chancellor Angela Merkel, wanted that to perceive the improvement in the pension the retirees showed that they were in need of it and that they had no other income or an important heritage.

The Social Democratic Party (SPD), on the other hand, rejected that formula and said that the so-called basic income was not a handout but a show of respect to people who had worked a good part of their lives.

Now the parties have reached a compromise in which only income is considered, for which information from the treasury will be used, and not the assets of retirees.

. (tagsToTranslate) German coalition (t) (t) agreement (t) improve (t) pension

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