Official supply not sustainable
Wirtschaftsweiser advocates cuts in pensions
12/29/2022, 12:43 p.m
Civil servants who retire receive a generous pension in this country. The economic wise Werding sees a need for action at this point. There are too many civil servants who are entitled to pensions. In order to avoid a collapse, something has to change now.
The economist Martin Werding sees an urgent need for reform in the pension scheme for civil servants. “The pension for civil servants in old age is not sustainable in the long term,” Werding told the “Bild” newspaper. In the meantime, large pension entitlements have accumulated, especially in the federal states, which are not sufficiently covered by reserves. “We’re facing a big problem,” said the economist. Reforms are needed here.
“On the one hand, the pensions for civil servants are very generous, and there is a need for action,” said Werding. “On the other hand, it should be considered whether sovereign tasks are really being fulfilled in all cases, i.e. a civil servant is really necessary.” There are “certainly many cases in which you have to critically question the situation”. In addition, reserves for pensions should be created with every appointment. As a result, the financial consequences for the budgets of the federal, state and local governments would be felt more quickly, according to Werding.
The economist also called for elected officials to pay into the pension fund: “We should discuss the integration of members of the Bundestag into the statutory pension insurance system.” The current situation provokes the accusation “that laws are made by people who are not affected by them themselves”.