The annual pension increase is based on the wage development in the previous year. There was in 2019, in a very significant wage increases, rising to 1. In July, the pensions in West Germany to 3.45 and in Eastern Germany in order to 4.20 percent. For times like now in the Corona-crisis, in which the wage level drops, preventing the pension guarantee cuts for the pensioners. The catch-up factor is determined, however, that if rising wages, the pension increases will be lower than the pension adjustment formula is actually planned for so long, until the balanced failure to cut again.
This regulation was suspended by the Grand coalition by 2025. The FDP is now demanding to be let also for the years 2020 to 2025 act. This would have the consequence that the generation of Retirees would support the economic consequences of the Corona pandemic.Updated Date: 28 June 2020, 21:19