The German Social Democratic Party (SPD) has suggested introducing an ‘opt out’ clause for occupational pensions if social partners fail in their attempt to increase the number of employees signing up for defined contribution (DC) pension plans.
Martin Rosemann, SPD’s speaker for labour and social policies in Parliament (Bundestag), said to ponder an opt out clause for occupational pensions on the condition that is also financed by the employer, if DC plans under social partner models won’t spread out among employees.
“It is important that there is a common responsibility for the organisation and financing [of occupational pensions] between employers and employees, that is also the difference between private and occupational pensions,” he added, speaking at the occupational pensions event bAV-Auftakt in Berlin last week.
Still, 48% of employees required to contribute to social security contributions in Germany are not covered by occupational pensions, according to a report by the Ministry for Labour and Social Affairs (BMAS).
The traffic-light coalition government – SPD, Greens and liberal party (FDP) – drafted a second pillar reform to make it easier to join existing social partner models without negotiating and signing new collective bargaining agreements.
Rosemann also said during the event that it was a past mistake to leave capital-funded pensions in the hands of the insurance industry.
“In Europe, in countries like the Netherlands or Sweden, social partners have taken over a lot of responsibility [on capital-funded pensions]. We have to make sure that all employees have the possibility to receive lucrative occupation pensions,” he said.
The SPD, which could govern in a coalition with the Union, the alliance of Christian Democratic Union (CDU) and Christian Social Union (CSU), and the Greens, based on polls ahead of the elections, is against a “pay and forget for all” proposal by the liberal party, which might not receive the number of votes necessary to send its representatives to Parliament after the election later this month.
The FDP wants to ditch outright collective bargaining agreements between employers and employees to expand DC plans, particularly in SMEs, according to a parliamentary motion recently filed by the party.
The second pillar reform drafted by the past government raised the issue of a social partner model valid for employers already offering good company pension schemes to employees, said Anja Schulz, member of Parliament (MP) for the liberal party, during the event last week.
“The majority of companies are not bound by collective bargaining agreements,” she added.
The Green Party backs opening up the social partner model to more companies, not explicitly rejecting collective bargaining agreements, while being in favour of a reduction of guarantees in exchange for compensatory measures.
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