At noon, the coalition factions passed a corresponding bill by Federal Labor Minister Hubertus Heil (SPD) against the votes of the AfD and FDP with abstentions from the left and the Greens. The basic pension is supposed to provide financially better long-term low earners in old age.
The prerequisite is that contributions to the statutory pension insurance have been paid for at least 33 years. The basic pension supplement is calculated in increments of 33 to 35 years. Basic retirement periods are primarily periods in which compulsory contributions have been paid due to employment, child rearing or care work. Access to the basic pension is via a so-called income test.
Monthly income allowances apply. If the respective income exceeds this, the basic pension should be reduced as a percentage. In the run-up to the vote, there had been harsh criticism, especially from the Union's economic wing, against the initiative by the SPD-led Federal Ministry of Labor. The main points of criticism included the administrative expenses and the financing of the basic pension.
Funding through a financial transaction tax was originally planned, but does not yet exist. Now the money should come from the federal budget - the Union had long resisted this.