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Pension Surcharge Counts as Income From Dec. 1 as Berlin Spars Over Costs and Welfare Sanctions

Lawmakers face mounting pressure to settle pension and welfare reforms ahead of a December rule change that could reduce some benefits.

Overview

  • The Deutsche Rentenversicherung says the temporary pension surcharge paid since July 2024 will be folded into monthly pensions on December 1 and treated as income, which can cut survivors’ benefits above exemption thresholds and raise taxable pension bases for some of roughly three million eligible recipients.
  • The SPD is standing by Labor Minister Bärbel Bas’s plan to hold the pension level, while the CDU/CSU’s Junge Gruppe threatens to block the bill, citing additional costs of about €115 billion between 2032 and 2040 due to the way the sustainability factor would resume after 2031.
  • Reports cite EU officials exploring whether to link parts of the next multi‑year EU budget to national pension reforms, a move under consideration that would toughen currently non‑binding country recommendations.
  • The government plans to replace Bürgergeld with a new Grundsicherung featuring much stricter sanctions, including immediate 30% cuts for missed Jobcenter appointments and potential full suspension of payments, drawing an open‑letter warning from major social associations about risks up to homelessness.
  • New BA data show Bürgergeld payment claims rose by about €240 million in the first half of 2025 versus late 2024, as leading economists urge consolidating benefits and changing income‑assessment rules, while the labor ministry projects only €86 million in savings from the initial reform in 2026.