The Federal Cabinet is set to endorse pension package II.
The Federal Cabinet will likely endorse the Pension Plan II, dubbed as such, after a protracted internal struggle within the ruling coalition. Previously, the FDP had held back the approval during the debate over the budget for 2025. However, FDP Finance Minister Christian Lindner has since changed his stance, green-lighting this crucial social policy undertaking for the "Traffic Light" alliance. This initiative aims to establish a pension system that is both economically sound and genuinely equitable.
Proposed measures for the Pension Plan II involve establishing a generational fund to invest massive sums of money from the government into the capital market. This move is intended to keep the pension level at 48% fixed up until the year 2039. There are moderate increases planned for contribution rates in the medium term. Not everyone is thrilled, though, with some FDP parliamentarians expressing dissatisfaction, claiming the plan isn't radical enough, particularly for younger generations. The SPD, on the other hand, is eager to fulfill a signature campaign promise with this proposal and ensure the longevity of a stable pension level.
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The "Traffic Light" coalition, comprising the SPD, Green Party, and FDP, sees the endorsed Pension Plan II as a major component of their core project. Despite some reservations from FDP parliamentarians, Christian Lindner's support has been instrumental in ensuring the Federal Cabinet's approval of this pension package, intended to maintain a pension level of 48% until 2039.
Source: www.ntv.de
