Overview

• Coalition partners agreed to start Mütterrente III on January 1, 2027, extending three pension points per child irrespective of birth year
• The Deutsche Rentenversicherung says its existing IT systems cannot be reused, requiring about two years for programming and testing
• Retroactive payments will involve recalculating related social benefits for over one million insured people, raising administrative complexity
• The reform’s extra annual cost is estimated at roughly €5 billion, with a potential €10 billion in savings if implementation were delayed to 2028
• A DIW analysis shows the measure will only reduce the gender pension gap by a few percentage points, limiting its impact on long-term equity