At yesterday’s coalition committee, many topics were discussed. In addition to the planned abolition of the practice fee from 2013 and the agreement on childcare allowance, the topic of pensions was also on the agenda. But the actually planned subsidy pension was not enforced thereby.

Above all, the draft law on subsidy pension of Federal Labor Minister Ursula von der Leyen has received much criticism in recent months. The draft was intended to supplement the pensions of low earners, who, despite their job performance and private pensions, would not exceed a low pension above the basic level of EUR 688 per month. Von der Leyen had planned an increase of up to 850 euros here. While criticized by the Leyen from their own ranks, especially in terms of financing, the opposition parties, such as the SPD, their own pension concepts before, for example, consider a larger group of people.

Life benefit pension instead of subsidy pension

Now the subsidy pension is off the table. As the secretaries-general of the CDU, CSU and FDP announced on the night of Monday after the coalition committee, should now instead a Lebensleistungsrente come. This also provides for an increase of low-income – but only by 10 to 15 euros above the basic security level. That would be in comparison to the initially planned 850 euros just 700 euros. However, due to the even higher hurdles, only about two percent of the low-income earners are likely to be eligible for this increase. Spending on life benefits is therefore lower than for the grant. This should be important for the Ministry of Finance. After all, from 2014 alone, the federal government will pay for the increase in order to relieve the municipalities.

Approximation of child-raising times uncertain

The crediting of child-raising periods of women, however, was not clearly clarified. This concerns women who had children before 1992. Until then, an additional pension point per child was counted, from 1992 it was then three. So far, no agreement has yet been reached on how to match the benefits, since this would cost around € 500 million per annum in 2015 for new pensioners only, even women who are already receiving a pension, after all, € 6.6 billion , The Coalition Committee has now been given the audit mandate to plan the procedure in this case, also with regard to a possible vintage limit of the betterment.

Satisfied by the Leyen

Decisions at the coalition meeting are collectively referred to as “election gifts” by the opposition. Chancellor Angela Merkel tries to keep her good poll results while strengthening her weaker partners. For this reason, even small increases are likely to be sold as major performance improvements. Federal Labor Minister von der Leyen should at least be satisfied that her bill on pensions was not completely rejected. According to n-tv, a spokesman for the Ministry of Labor said: “The Federal Ministry of Labor welcomes the outcome of the coalition round, and the bill, which has been in cabinet reconciliation since August, can be swiftly adapted and brought to cabinet later this month.”