VdK criticizes draft law to strengthen old-age security
14.08.2012 11:41
The president of the social association VdK Germany, Ulrike Mascher, described the draft law presented by Federal Labor Minister Ursula von der Leyen to strengthen old-age security as “inadequate”. “The improved legislative package also contains few effective solutions that could help us make progress in the fight against the threat of poverty in old age. Those most at risk of poverty continue to benefit little from the planned measures. The minister’s stated goal of putting an end to old-age poverty in Germany was not achieved,” stated Mascher.
In the opinion of the VdK, the new supplementary pension does nothing to ease the burden: “The access requirements for most women are still far removed from the reality of life. Initially 40, later 45 years of insurance, of which initially 30, later 35 were employed subject to social security contributions, plus long years of private provision are requirements that only a few women can meet,” criticized Mascher. It is suggested that women who have raised children and cared for relatives are now automatically entitled to a pension of 850 euros. But this amount is only the maximum entitlement, “which means that many women will still not be protected from basic security”. In particular, the supplementary pension is not a replacement for the necessary recognition of three years of child-rearing time for children born before 1992, which is demanded across parties and social associations. “The minister’s concept does not contribute to alleviating existing poverty among women in old age,” summed up the VdK president.
She considered the higher investments planned for rehabilitation measures to avoid incapacity to work, as the social association VdK had repeatedly called for, as a success.
However, in the VdK's opinion, the main causes of poverty in old age remain unaffected by this concept: "For the long-term unemployed, people with existing reduced earning capacity, precarious workers or solo self-employed people, there is no improvement in sight." In order to combat old-age poverty in the long term, however, more future-oriented measures are required: “Pension according to minimum income, introduction of a nationwide minimum wage and promotion of health measures to prevent early incapacity for work are possible starting points here.”
The minister's plan to reduce the current pension contribution rate from 19.6 to 19 percent was rejected by the social association VdK. “With a gross income of 3,000 euros, that would be 9 euros a month. This will neither noticeably relieve the burden on employees nor support the economy,” she calculated. “Instead, the additional income should be used to prevent poverty in old age; there is a social consensus on this.” At least, says Mascher, the increased fluctuation reserve of the pension insurance should be maintained to compensate for expected future increases in contribution rates.