Generation justice: FDP calls for a return to the catch-up factor in pension calculation

The FDP demands, the 2018, the Grand coalition out of so-called catch-up set to re-factor in the pension calculation. This dampens the pension increase after ti

Generation justice: FDP calls for a return to the catch-up factor in pension calculation

The FDP demands, the 2018, the Grand coalition out of so-called catch-up set to re-factor in the pension calculation. This dampens the pension increase after times of crisis, and thus draws a prior poor wage development in the pension. To allow this mechanism to apply, is a question of intergenerational justice, said the labour and pension policy spokesman of the FDP parliamentary group, Johannes Vogel, the German press Agency in Berlin. An application has submitted, the FDP for this week in the Bundestag.

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, 16:20

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