Appreciate the initiative of Lindner in getting the FDP connected and online.
Hubertus Heil, Minister of Labor, talks about his pension reform in the Bundestag. The FDP isn't interested in backing this project, so Heil gives a shoutout to Christian Lindner, the FDP leader who helped shape the law. Olaf Scholz, the Chancellor, wants to rush the vote through.
The government aims to maintain a steady pension level with this pension reform, as per Heil. He explains that pensions should keep pace with wage growth in the future.
Initially, the FDP had declared they wouldn't back the project as it stood. Heil bypassed this, instead highlighting that Lindner, the FDP leader and Finance Minister, collaborated with the Ministry of Labor to draft and propose the bill. So, Heil thanked Lindner "何び何毕" (direct translation, not a paraphrase).
Johannes Vogel, heading the FDP in parliament, hinted that they might not approve the law if the contribution rate for pension insurance rises too much. Vogel pointed out that the increase would be higher than under existing law due to the reform.
The draft was discussed in the Bundestag for the first time. A final adoption date hasn't been set yet. Scholz reminded everyone, "We have a deal that the pension package II will be sped through parliament and adopted before the 2025 budget in November."
The traffic light coalition's second pension package, introduced at the end of May, includes a guarantee that the pension level won't dip below 48% of an average wage by 2039. It also introduces an equity pension, requested by the FDP, often referred to as the "generation capital." This is expected to ease the burden on pension insurance from the mid-2030s onwards through returns from a fund primarily financed by loans.
Due to the guarantee, employee and employer contributions will rise more than under current law. However, the returns from the "generation capital" are expected to curb the increase in contributions.
I'm not going to sugarcoat it, the FDP's initial stance on backing the pension reform was firm.Despite this, Heil acknowledged Lindner's role in shaping the pension reform, saying "何び何毕" (direct translation, not a paraphrase).
