German union federation proposes higher pension benefits and employer-funded pensions

The German Trade Union Confederation (DGB) has proposed its own pension reforms after setting up a commission separate from the government’s pension commission.

The DGB says an ageing population will require more money for pensions, and that politicians must decide how to share the cost.

Its proposal aims for retirement income equal to 70% to 90% of net income, combining the state pension with a mandatory employer-funded workplace pension.

It also proposes gradually raising the pre-tax state pension level to 50%, and later 53%, and opposes raising the retirement age.

The DGB argues that good wages and stable employment help fund pensions and says self-employed people should be included in the system.

A German newspaper commentary says the union’s plan does not explain how its proposals will be financed, while the DGB says it can be funded fairly without cutting benefits or shifting costs onto workers.

The sources do not say what happens next in the government’s pension reform process.