“It shouldn’t exist”
Pension insurance boss warns next government against cuts
December 5th, 2024 – 3:20 p.mReading time: 1 Min.
There should be no cuts in subsidies for pension insurance: this is what the head of the insurance company is demanding from the next federal government.
The CEO of the German Pension Insurance Federation (DRV), Alexander Gunkel, has warned politicians against cutting subsidies to the pension insurance simply out of a need to save money. He wanted to tell “the coming coalition after the federal election”: “There should be no cuts in federal subsidies motivated by budgetary policy,” said Gunkel on thursday at a DRV event in Berlin.
“A stable pension insurance needs reliable financing,” emphasized Gunkel,according to the speech manuscript. This applies “especially now, when the pension insurance is subject to high burdens as the highest birth cohorts retire.”
The federal subsidy for pension insurance is the largest single item in the federal budget. In 2024, the DRV will recieve 87.6 billion euros in this way. this means that federal subsidies make up around 22 percent of total revenue.
in this context, Gunkel expressed relief that certain plans for pension insurance will no longer be implemented due to the end of the traffic light coalition. With the second budget accompanying law and the pension package II, cuts in federal subsidies amounting to 2.8 billion euros were planned, he said – this will no longer happen. “We expressly welcome this,” said Gunkel, according to the speech manuscript.
At the same time, he emphasized that the pension would not be affected by the traffic lights being turned off. “The current situation does not affect the work or finances of the German pension insurance,” said Gunkel. The contribution rate of 18.6 percent will continue to apply next year, and “nobody has to worry about the pension adjustment next summer, because that doesn’t require the Bundestag’s involvement.”
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