Overview
- The draft keeps the 48 percent pension level safeguard through 2031 in line with the coalition agreement.
- A pension commission will be formed this year, include critics, and finish its work before the summer 2026 break.
- The government plans to begin the legislative process for post‑2031 reforms immediately after the commission reports.
- Merz is coordinating with the SPD on a companion text to signal a fundamental redesign starting in 2032.
- One option under discussion is linking pension increases to inflation rather than wages after 2032 to contain costs.