Germany’s new Labor Minister, Bärbel Bas, has unveiled a controversial proposal to expand the base of contributors to the national pension system.
Her plan would require not only employees, but also civil servants, members of parliament, and self-employed individuals to begin paying into the system.
“We need to involve more people in financing pension insurance,” said Bas.
The proposal aims to address the persistent shortfall in the pension fund by broadening the pool of contributors. However, experts have raised concerns about the long-term sustainability of the move.
“Civil servants, parliamentarians, and the self-employed generally have a higher life expectancy than salaried workers, which creates an additional long-term burden on the system,” said Christian Hagist, a professor and pension expert.
While Hagist acknowledged that the reform could increase pension revenues in the short term, he warned it might place heavier financial pressure on future generations.
The self-employed community has also expressed reservations.
“If it turns out in the end that mainly the self-employed are expected to pay, that would be unfair,” said Andreas Lutz, a representative of the Association of Independent Trade Unions.
One obstacle to rapid implementation is Germany’s constitutional protection of civil servant pensions, which complicates efforts to integrate them into a unified system.
Some suggest Germany could look to Austria as a model. Since 2005, Austria has applied the same pension rules to all workers, including civil servants. However, the system there demands higher contributions — 22.8% compared to Germany’s current 18.6%.
