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North Rhine-Westphalia rushes to scrap pension law over tax backlash

A rare political consensus emerges as lawmakers scramble to undo a pension reform gone wrong. Will the fix come in time to avoid financial chaos?

In this image I can see two women wearing black colored blazers are sitting on chairs in front of a...
In this image I can see two women wearing black colored blazers are sitting on chairs in front of a table and on the table I can see a book, few glasses, a glass jug and in the background I can see the cream colored wall and few banners.

Landtag to reinstate bonus for retired MPs - North Rhine-Westphalia rushes to scrap pension law over tax backlash

The North Rhine-Westphalia state parliament will hold an emergency session on Tuesday to repeal a controversial pension law. The move comes after unexpected tax issues threatened to cost current lawmakers thousands of euros by year’s end. All major parties, except the AfD, have backed the reversal in a rare show of unity.

The law in question, passed in March, introduced state-funded pension supplements for retired politicians. But officials later discovered that the payments would trigger higher taxes for sitting lawmakers, creating an unintended financial burden. Some faced the prospect of paying thousands in extra taxes before December.

If approved, the repeal will remove the pension supplement for retired politicians and prevent the tax hike for current officeholders. The state government still intends to pursue broader reforms to address pension fairness and post-retirement work incentives. A decision is expected by the end of Tuesday’s session.

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