(Pensions; 10-03; p.2)
The situation
When the government-initiated Rürup-commission
had presented, which changes it found useful for financing
Germany’s social security systems, their proposals were among
others discussed.
Another concept has been worked out by the Herzog-commission
that has been initiated by the CDU/CSU, the main opposition parties.
Their proposals did not find much resonance, however.
While Germany’s health system – that had been
discussed in the last months thoroughly and upon which a first
level compromise had been reached – accounts for about 14 per
cent of the so called extra wage costs, spending on mandatory
pensions runs up to about 22 per cent.
(In Germany, almost every employee has to pay into a state-regulated
pensions fund; only highly paid employees, entrepreneurs and civil
servants, including politicians, do not fall under that ruling.)
The proposals of the Rürup-commission should not but have the
effect of not raising this percentage again and again – a rather
moderate goal, which all the same caused some grumbling among
the citizens.
The proposals
The proposals of the Rürup-commission can be
centred around four items:
•age-group related fees, i.e. in the future younger ones
will have to work longer respectively to gain a share of the pensions
fund;
•limitation of the possible payment of pensions before reaching
the legal standard age;
•limited adding of work-similar times to the time paid in;
•connection of payments to a pensioners’ quota, i.e. the
share of employees to pensioners. (read
on here)