German union boss rejects pension reform proposals, citing 'scare tactics'

Yasmin Fahimi, the head of the German Trade Union Confederation (DGB), has strongly rejected central recommendations from the expert commission on pension reform. As the commission prepared to submit its proposals to the federal government, Fahimi criticized the notion that people must work longer due to financial unsustainability, labeling it a "legend to scare people."

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To say that people have to work longer because the pension is otherwise not financeable is 'a legend to scare people.'

Fahimi asserted that the discussion surrounding the retirement age is "not conducive to the matter." Instead, she argued, efforts should focus on finding ways to ensure people can retire in good health or at least remain reasonably capable of working until retirement. She also deemed the recommended abolition of penalty-free early retirement for those with long contribution records as unfair, noting that recipients typically have paid contributions for an average of 47 years, not just 45.

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The discussion about the retirement age is not conducive to the matter.

The pension commission has developed 33 recommendations for a significant reform, driven by the increasing financial strain on the pension system due to a growing elderly population. Key proposals include a gradual increase in the retirement age, the elimination of penalty-free early retirement after 45 years of contributions, and the introduction of a mandatory capital-funded pension component.

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how we get people into retirement in good health or at least reasonably capable of working.

Chancellor Friedrich Merz (CDU) and Labor Minister Bärbel Bas (SPD) are set to receive the commission's report. While Merz has expressed optimism about the proposals, Bas indicated a need to carefully consider how to proceed. Representatives from both the CDU/CSU and SPD have called for an open-minded approach, urging against dismantling the proposals due to potential resistance from those who benefit from the current system.

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that those who take advantage of it have not only paid 45, but on average 47 years of contributions.