What the Basic Pension Looks Like

The finishing touches are being done over the new 'basic' pension deal....which will be supported by Chancellor Merkel, and the coalition (CDU, CSU, and SPD).

What's in the package?  N-TV did a decent layout and I'll point to them for most of the details.

First, it doesn't matter if they pass it now....it won't start until 1 January of 2021.

Second, it's being arranged in layers....meaning the new people retiring will be the first to get the deal.  Those already retired....will have to wait (figure to around to the end of 2022).

Third, who gets it?  Well, based on the 'science' of this....1.3 million Germans, of which roughly 70-percent will be women.  Don't ask how they rigged this....it'd just invite long discussions that go nowhere.  You had to be a low-wage person most of your life, with 33 years of work....to fit into the 'deal'..

Within this period....if you raised kids, or did healthcare for your relatives....you get credit for a period of time.

Fourth, what's this add up to?  Right now....1.4 billion Euro.  Here's the thing to this topic....they can't take the money from the retirement fund.  It'd just deflate it rather quickly.  So they are taking it from general tax revenue.  A problem later because of the recession going on?  No one talks about that, or how the future will fund this whole thing.

Fifth, the amount for each?  If you are single....no matter what you did in life (cheap labor or average labor)....your take-home will be 1,250 Euro a month.  If you are married, 1,950 Euro a month.

Unfairness of this?  You could be standing in a room with your friend.  You went aggressive as an apprentice and most of your life as a transmission mechanic for the local Ford dealer.....with your pension near 2,000 Euro a month.  Your friend mostly did just minimum wage landscaping work, and their normal pension would be now near 1,300 Euro a month....but because of this deal, he's now given a 650 Euro bump up. 

Some Germans are going to be a bit testy and angry over the deal.  But here's the logical side of this....they've done the review, and it mostly bumps up women (widows) and they can state for a fact that 70-percent of the folks helped....are women.