MV to Approve Rental Package in Federal Council - Germany’s pension reform secures 48% rate until 2031 with state backing
Mecklenburg-Western Pomerania has announced its support for Germany’s newly approved pension reform package. The state will vote in favour of the changes in the Bundesrat, with Premier Manuela Schwesig (SPD) confirming the pension level will remain at 48 percent. The reforms aim to stabilise contributions and introduce new incentives for supplementary pensions.
The proposed law, if approved, will take effect on January 1, 2026. It includes measures to keep the pension level at 48 percent until 2031, ensuring stability for retirees. Schwesig highlighted that tax subsidies help maintain balanced contributions for workers and employers.
The federal government also plans to set up an expert commission to develop long-term reforms. This group will explore options like raising the retirement age and introducing flexible transitions into retirement. CDU leader Daniel Peters stressed the need for further changes to control rising tax subsidies, warning that unchecked costs could limit budget flexibility.
Speakers from various factions called for expanding the pension system’s funding base. They proposed including civil servants, freelancers, and lawmakers in the statutory scheme to strengthen its financial footing. Schwesig additionally welcomed new incentives for occupational and active pensions, which will provide extra support beyond the state pension.
The reforms will now move forward with Mecklenburg-Western Pomerania’s backing. If passed, the law will secure the pension level at 48 percent for the next decade while setting the stage for future adjustments. The expert commission’s recommendations will shape further changes to ensure the system remains sustainable.
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