Today, the German Bundestag decided to introduce a new basic pension. Under the new rules, those who have paid into the statutory pension scheme for many years will have their pensions topped up to 80% of the pension average. To qualify for this scheme, beneficiaries must have contributed to the scheme for 33 years through gainful activity, child-rearing, or caring for a relative reliant on that care.
, welcomed the decision by the Bundestag, stating: “If you pay into the pension scheme for half your life, then you should be able to benefit from this in old age. This is a matter of respect and recognition. I am pleased that the eligibility criteria for the basic pension have been designed in a way that allows many people from the New Länder to also benefit from the scheme. The massive economic upheaval following the end of the GDR had a lasting effect on the professional lives of many in the New Länder. To this day, this is still reflected in their incomes. It is good that the financial losses can now be cushioned by the basic pension now that these people have reached old age.”
The basic pension will take effect on 1 January 2021.