Overview

• The Second Company Pensions Strengthening Act introduces opt-out enrollment, broadens access to sectoral social-partner models, and lets non‑tariff firms offer plans via works agreements.
• Rules for pension providers would be loosened to allow higher risk and return during the savings phase, alongside enhanced tax incentives.
• Employer support for low earners would rise, including an increase in the monthly subsidy cap from €80 to €100 and a 30% contribution subsidy for wages up to €2,575, with thresholds tied to the statutory ceiling.
• The government estimates annual fiscal costs of about €150–155 million, with implementation targeted for January 1, 2026 after Bundesrat and Bundestag review.
• Coverage stood at roughly 18.1 million employees, or about 52%, at end‑2023, while critics such as Die Linke argue the package is too small and may expose savers to more investment risk.