The Pensions Commission has presented a balanced package comprising 33 individual measures for “the most challenging reform project of our time”, said Federal Chancellor Friedrich Merz at the joint press conference with Federal Minister of Labour and Social Affairs Bärbel Bas and the co-chairs of the Pensions Commission, Frank-Jürgen Weise and Constanze Janda. Prior to that, the Chancellor and the Minister had received the Commission’s final report. 

Federal Chancellor Merz said that the recommendations were “of the utmost importance” – for the welfare state, for the country as a business location, but above all for society. Federal Minister of Labour and Social Affairs Bärbel Bas said that this was the first time a comprehensive plan for all generations had been put forward. “If we go ahead with this reform as it currently stands, things will be better for everyone”, said Bas.

You can find the full report from the Pensions Commission here (german). PDF, 1 MB, barrier-free

The most important points in brief:

• Securing pensions: The Federal Chancellor emphasised at the press conference that pensions would remain secure, and that the burden of funding them would be shared fairly. “Your proposals strengthen the intergenerational contract. “There is now cause for optimism, including and particularly for the young people in this country”, Merz told the Commission.
• Funding through investment income: According to Chancellor Merz, a new capital-market-based pension within the statutory pension scheme will, in the long term, lead to a higher overall level of provision and falling pension contributions. “With this new pension model, we are ensuring that broad sections of the population share in the growth of the value of our economy”, said the Chancellor. Federal Minister of Labour and Social Affairs Bärbel Bas added that these additional contribution points meant that the younger generation would receive a higher pension later on than pensioners do today. “That really is an important message for the younger generation too”, said Bas.
• Rapid implementation: “The individual measures are interlinked and balance each other out”, said Federal Chancellor Merz. The priority now, he said, is to implement this package in full and without delay. “We cannot afford to remove or reject individual measures” – the coalition is united on this point, according to Merz. He said that he was looking forward to the forthcoming discussion with confidence: “An intergenerational project such as this must be understood, discussed and, ultimately, supported by everyone.”