Heil is examining the step-by-step plan for the basic pension

The corona pandemic is also having an impact on pension policy. The Minister of Labor is now saying how he wants to get the basic pension off the ground despite the crisis.

In crisis-fighting mode: Labor Minister Hubertus Heil

AIn view of the difficulties in the preparations, the black-red coalition is now examining a step-by-step plan to introduce the basic pension for low-wage earners. Federal Labor Minister Hubertus Heil (SPD) writes in his response to the Federal Council’s opinion that the federal government wants to introduce the basic pension by January 1, 2021. “Nonetheless, it does not fail to recognize that the basic pension is associated with a high level of implementation effort, especially for the statutory pension insurance providers.”

At the same time, the corona crisis is also leading to a particular burden on the pension insurance. “Against this background, the proposal of a staggered implementation with retrospective payment of the basic pension supplements for existing pensioners could basically be considered in order to facilitate the administrative implementation of the pension insurance.” With such a graduation, adjustments to the accompanying tax exemption regulations would also be necessary, emphasizes Heil in his letter.

The changes would have to be anchored in the basic pension law, which the Bundestag should actually discuss in the first reading next week. The chairmen of the CDU / CSU and SPD parliamentary groups, Ralph Brinkhaus and Rolf Mützenich, could not agree on this. The law has therefore not yet been on the agenda. However, the consultation could still be registered later.

Pension insurance will loan employees

The CDU social politician Peter Weiß again contradicted rumors that the Union wanted to postpone the basic pension by one year. “It is not the goal of the Union that nothing happens,” said Weiß of the FAZ: “We stand by the appointment with the SPD, we also want to keep the promise to the low-income.”

However, the warnings of the pension insurance have to be taken seriously, which repeatedly question whether it will come into force in early 2021. “A gradual entry into force of the basic pension could therefore make sense – also to make it administrable for the pension insurance” said Weiß. “It is important to the Union that the tax exemption regulations come into force in a first stage.” be consumed by welfare systems.

The pension insurance had last warned at Easter that the tight schedule for the basic pension could tip because the content check of 26 million pension accounts and the technical preparations for the automated data exchange with the tax offices for the planned income check were taking.

The time pressure has increased due to the Corona crisis because many pension insurance employees have to work from home. In addition, the pension insurance will “loan” employees to the Federal Employment Agency who have to pay out short-time allowance.

According to the will of the coalition, around 1.3 million people with small pensions should receive an allowance if they have at least 33 years of contribution periods for employment, raising children or care. In the first year, the basic pension will cost 1.3 billion euros. It should be paid “from tax revenues”. However, the Union is also calling for general tax financing to be backed. The financial transaction tax promised by Federal Finance Minister Olaf Scholz is not yet in sight.

The corona pandemic is also having an impact on pension policy. The labor minister now says how he wants to get the basic pension off the ground despite the crisis.

In crisis-fighting mode: Labor Minister Hubertus Heil

AIn view of the difficulties in the preparations, the black-red coalition is now examining a step-by-step plan to introduce the basic pension for low-wage earners. Federal Labor Minister Hubertus Heil (SPD) writes in his response to the Federal Council’s opinion that the federal government wants to introduce the basic pension by January 1, 2021. “Nonetheless, it does not fail to recognize that the basic pension is associated with a high level of implementation effort, especially for the statutory pension insurance providers.”

At the same time, the corona crisis is also leading to a particular burden on the pension insurance. “Against this background, the proposal of a staggered implementation with retrospective payment of the basic pension supplements for existing pensioners could in principle be considered in order to facilitate the administrative implementation of the pension insurance.” With such a staggering, adjustments to the accompanying tax exemption regulations would also be necessary, emphasizes Heil in his letter.

The changes would have to be anchored in the Basic Pension Act, which the Bundestag should actually discuss in the first reading next week. The chairmen of the CDU / CSU and SPD parliamentary groups, Ralph Brinkhaus and Rolf Mützenich, could not agree on this. The law has therefore not yet been on the agenda. However, the consultation could still be registered later.

Pension insurance will loan employees

The CDU social politician Peter Weiß again contradicted rumors that the Union wanted to postpone the basic pension by one year. “It is not the goal of the Union that nothing happens,” said Weiß of the FAZ: “We stand by the appointment with the SPD, we also want to keep the promise to the low-wage earners.”

However, the warnings of the pension insurance have to be taken seriously, which repeatedly question whether it will come into force at the beginning of 2021. “A gradual entry into force of the basic pension could therefore be useful – also to make it administrable for the pension insurance” said Weiß. “It is important to the Union that the tax exemption regulations come into force in a first stage.” be consumed by welfare systems.

The pension insurance recently warned at Easter that the tight schedule for the basic pension could tip because the content check of 26 million pension accounts and the technical preparations for the automated data exchange with the tax offices for the planned income check were taking.

The time pressure has increased due to the Corona crisis because many pension insurance employees have to work from home. In addition, the pension insurance will “loan” employees to the Federal Employment Agency who have to pay out short-time allowance.

According to the will of the coalition, around 1.3 million people with small pensions should receive an allowance if they have at least 33 years of contribution periods for employment, child-rearing or care. In the first year, the basic pension will cost 1.3 billion euros. It should be paid “from tax revenues”. However, the Union is also calling for general tax financing to be underlay. The financial transaction tax promised by Federal Finance Minister Olaf Scholz is not yet in sight.