East German Pension Recipients Pursue Complete Federal Compensation Payment - Federal Government covers full special pensions in eastern regions
In a continued debate over the financial burden of DDR (East German) special and supplementary pensions, the eastern German states, including Saxony, Berlin, Brandenburg, Mecklenburg-Vorpommern, Saxony-Anhalt, and Thuringia, are pushing for the federal government to take on a greater role in their funding.
Initially after reunification, the eastern states bore 60% of the costs for supplementary pensions, with the federal government covering 40%. However, at the beginning of 2021, the federal government increased its share to 50%. Despite this increase, the eastern states find the relief insufficient.
Brandenburg, for example, saves around 63 million euros due to the federal government's relief on DDR special and supplementary pensions, but its Minister President, Dietmar Woidke (SPD), has stated that the federal government must present a concrete step-by-step plan for taking over the burdens of the DDR special and supplementary pension systems. In June, Woidke had appealed to the federal government to fully take over the payment of these pensions.
Saxony-Anhalt's Minister President Reiner Haseloff (CDU) had demanded further relief on DDR special and supplementary pensions last year. The eastern states claim they have spent 72 billion euros on co-financing statutory pensions between 1991 and 2024.
The coalition agreement between the Union and the SPD provided for the federal government to relieve the eastern states, with the share to increase to 60%. However, the current agreement in the Bundesrat sees the federal government's share at 50%. The states are united in the view that this relief is not the end of the solution for the high burden on them from the DDR special and supplementary pension systems.
The DDR had 27 supplementary pension systems for various occupational groups, including former employees of the army, police, teachers, engineers, scientists, and doctors. The current pension system in Germany is managed by the federal government, with contributions and benefits regulated across the country. However, any changes to the DDR special and supplementary pensions would likely need to be addressed through federal legislation or agreements with the states, considering the historical context and the current political landscape.
As of now, there is no specific information available regarding the current status or future plans for the federal government to take over the payment of DDR special and supplementary pensions in Eastern states, such as Brandenburg and Saxony-Anhalt. The development of this issue will likely be announced through official government communications or legislative updates, as they become available.
- The Commission, amidst general-news discussion about finance, politics, and business, has also proposed a Council Regulation on the conclusion of the Agreement on the European Economic Area, aiming to supplement it, a move that holds potential implications for the future economic landscape of the area.
- Meanwhile, in the realm of domestic politics, the eastern German states continue to push for the federal government to take on a greater role in funding DDR special and supplementary pensions, a financial burden that remains a significant concern for these states.
