Quick Change for MPs' Pension Supplement

Quick Change for MPs' Pension Supplement - Quick Change for MPs' Pension Supplement

North Rhine-Westphalia’s state legislature has scrapped a controversial pension supplement for lawmakers and their survivors. The decision, made in December 2025, reverses a policy passed just nine months earlier. Officials now estimate the move will save taxpayers around €100,000 in the next financial year.

The pension supplement was approved in March 2025 but faced immediate criticism. The Taxpayers’ Association of Germany argued that lawmakers had failed to grasp the tax consequences before voting it through. Their report highlighted potential financial burdens for the very politicians who backed the measure.

All five parliamentary groups—CDU, SPD, Greens, FDP, and AfD—eventually agreed to remove the provision. The reversal came after warnings that the supplement could create unintended tax liabilities. The state parliament used a transitional clause to end the benefit by December 31, 2025, without reclaiming any previously paid amounts. The opposition AfD accused the other parties of hypocrisy, claiming they had initially supported the supplement to avoid personal costs. Meanwhile, the Taxpayers’ Association pushed for broader reform. They called on lawmakers to either join the standard public pension system or fund their own retirement privately.

The repeal will take effect from January 2026, with no retroactive claims on past payments. Taxpayers are set to save €100,000 annually as a result. The episode has reignited debate over how lawmakers’ pensions are funded in the state.