The proposed expansion of Germany's mother's pension has faced criticism from Gundula Roßbach, President of the Deutsche Rentenversicherung Bund. Roßbach describes the plan as an exceedingly costly redistribution, estimating annual expenses at five billion euros. She contends that the financing for this expansion is absent from the coalition's preliminary agreement between CDU, CSU, and SPD.
Roßbach advocates for the federal government to cover these costs entirely through tax revenues. If not, there would be a 0.25 percentage point increase in the pension insurance contribution rate, potentially surpassing 19% by 2027. She argues that the pension fund should not be used to rectify past injustices or incomplete employment histories, emphasizing a return to a future-oriented approach in pension reforms.
The reform intends to standardize the calculation of parental leave for pension purposes, granting all eligible individuals the maximum mother's pension, irrespective of their children's birth year. Currently, only two and a half years are credited for children born before 1992, compared to three years for those born later.
Roßbach questions whether the benefits justify the immense costs, noting the modest monthly increase of around 20 euros per individual. While this amount may be significant for some, she urges careful consideration of whether such a substantial financial commitment is warranted, especially when resources could be better allocated elsewhere.
Overall, Roßbach's critique highlights the necessity for a careful evaluation of pension reforms, urging a balance between immediate relief and long-term sustainability within Germany's social welfare system.
