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2h ago

German Cabinet Poised to Back Law to Boost Occupational Pensions

The proposal targets low- and middle-income savers via opt-out enrollment, looser Pensionskassen rules, with tax incentives costing about €155 million annually.

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Die Bundesregierung will Betriebsrenten als zweite Säule der Altersversorgung neben der gesetzlichen Rente stärken. Das Bundeskabinett beschloss dazu am Mittwoch dazu einen Gesetzentwurf des Bundesarbeitsministeriums.
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Overview

  • Ministers Bärbel Bas and Lars Klingbeil have tabled the Second Occupational Pensions Strengthening Act, with initial cabinet approval expected Wednesday.
  • Small and medium-sized employers would find it easier to offer company pensions, including via works agreements and an expanded social-partner model.
  • Automatic enrollment with a right to opt out would be facilitated to increase participation among employees.
  • Rules for pension funds would be made more flexible, accepting higher investment risk and potential returns for savers.
  • Germany counted 18.1 million active occupational pension entitlements at end‑2023, equal to about 52 percent coverage, and the draft estimates recurring tax costs of roughly €155 million per year.