Overview

• Ministers approved the draft Second Betriebsrentenstärkungsgesetz to widen access to employer pensions, with debate in Bundesrat and Bundestag to follow.
• Non‑tariff firms could offer plans via works agreements, more employers could join collective social‑partner models, and automatic enrolment with opt‑out would be facilitated.
• The draft lifts targeted support for low earners by raising the employer subsidy cap to €100 per month and allowing a 30% subsidy for workers earning up to €2,575, with the threshold linked to the pension contribution ceiling.
• Rules for pension funds would be loosened to permit higher‑risk, potentially higher‑return investments, as coverage has slipped to about 52% of employees (18.1 million with entitlements).
• The government estimates roughly €150–155 million in annual fiscal effects, targets a start on 1 January 2026, and faces pushback from the Left party over adequacy and risk shifting compared with bolstering the statutory system.