Thursday December 30th 2021
Left demands more money from the federal government
GDR special pensions cost Eastern countries billions
More than three decades after reunification, the eastern German states have to raise billions a year for pension entitlements from the GDR era. The federal government currently finances half of the system. Not enough for the left.
The East German states have to raise around 2.6 billion euros annually for the former supplementary and special pensions in the GDR. This emerges from a response from the Federal Ministry of Social Affairs to a request from the left. Of the total, 1.7 billion euros per year are due for supplementary pensions for individual occupational groups, and a further 900 million euros for special pensions for former members of the People’s Police. The information relates to the years 2021, 2022 and 2023.
Left parliamentary group leader Dietmar Bartsch called on the federal government to take over the costs in full and thus relieve the eastern German states and municipalities. The statutory pension insurance is a matter for the federal government. “In the 32nd year of German reunification, this design flaw, which is a structural disadvantage for the East, should be corrected,” he said. “The eastern German states need 2.6 billion euros per year for future investments, the education system and structural change.”
During the GDR era, there were 27 supplementary pension systems for individual occupational groups. Special pensions were available for members of the National People’s Army, Customs and State Security. The benefits were transferred to the statutory pension insurance with the association. Initially, 60 percent of the costs were borne by the East German states and 40 percent by the federal government. At the beginning of 2021, the federal government increased its share to 50 percent.
The coalition agreement only vaguely mentions the issue
This increase in the federal share is correct, but only a first step, said Bartsch. The eastern German states would have to put pressure on for full coverage of the costs. Saxony had recently emphasized that it is hoping for greater federal participation.
The traffic light parties mention the topic in their coalition agreement, but only vaguely. You write: “We also want to ensure that the situation of the East German municipalities is taken into account, which are also challenged by contaminated sites through no fault of their own. We also want topics such as the situation of the old municipal housing associations and the Law on Entitlement and Expectancy Transfer (AAÜG ) address. “