Unfair Treatment in Retirement Benefits
In November 2022, the German federal government established a Hardship Fund to alleviate pension injustices experienced by East German pensioners. As of the latest data, only 162.54 million euros have been paid out, with the remaining 337 million euros being returned to the federal budget.
The fund, which has a three-year lifespan and is managed by a foundation, was set up to support those receiving a pension up to the level of basic security. However, the low uptake of compensation might be due to various factors, including strict eligibility criteria, complex application processes, and a lack of awareness among eligible individuals.
The Hardship Fund was intended to help a specific group of individuals whose pension claims were partially ignored after German reunification. This affected nearly 20 professions, as well as divorced women who were disadvantaged due to the lack of survivor's benefits.
The chair of the Left Party in Saxony criticised the Hardship Fund, describing it as another instance of the federal government's contempt for East German life achievements. Monika Hohmann, a social policy expert of the Left Party in the Saxony-Anhalt state parliament, labelled the fund a "flop" and a "humiliation" for East German pensioners. Hohmann demanded that the unpaid 337 million euros be used for further compensation payments.
In Thuringia and Mecklenburg-Western Pomerania, the payments doubled due to state contributions. However, other eastern states refused to contribute to the fund. A "Round Table on Pension Injustice" wrote to Federal Chancellor Friedrich Merz (CDU) in June, calling for a justice fund to be negotiated in the planned pension commission.
The long struggle of individuals affected by pension injustices during German reunification often involved many legal instances, and in some cases, the UN. Only 2734 members of certain professions received a one-time payment of 2500 euros from the Federal Republic.
The total funds allocated for the hardship fund amount to 500 million euros. By the end of June, the foundation had processed 99.97 percent of the applications. Despite the challenges faced, efforts to address pensioner poverty continue, with policy adjustments being considered to improve the adequacy of pensions, enhance support frameworks, and address the root causes of pensioner hardship.
The Hardship Fund, established to aid East German pensioners experiencing pension injustices, is managed by a foundation and has a three-year lifespan. Its controversial low uptake may be attributed to stringent eligibility criteria, intricate application processes, and insufficient awareness among the eligible group, raising concerns within the Left Party and prompting calls for the unpaid 337 million euros to be used for additional compensation payments.
Politics and general news regarding the Hardship Fund reveal various issues faced during German reunification, including pensioner hardship across multiple professions, and ongoing efforts to ensure justice and alleviate pensioner poverty through policy adjustments, improved pension adequacy, and enhanced support frameworks.
