Pension insurance boss warns next government against cuts

by times news cr

“It shouldn’t exist”⁣

Pension insurance boss warns next government against cuts

December 5th, 2024 – 3:20 p.mReading time: 1 Min.

Alexander⁣ Gunkel (archive photo): The head of the pension insurance warns‌ the next federal government. (Source: Ute Grabowsky / photothek.net/imago)

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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