Germany, which has implemented a new practice to create a more fair order in the retirement system, announced that it will re-examine the salary files of nearly 10 million retirees and make a permanent increase in the salaries of retirees, with the new legal amendment called “Mother’s Pension 3” (Mütterrente 3), which is expected to come into force in 2027. In addition, it was stated that the salary differences of retirees with past salary differences will be collectively transferred to their accounts.
With the new regulation, it is aimed to eliminate the discrimination in retirement points based on the birth year of children and to eliminate the inequalities in the current system. According to the current system, for children born before 1992, mothers and fathers were given two and a half retirement points per child, that is, approximately 30 months of child-rearing time, while a full three points were applied for children born after this year.
SALARY INCREASE UP TO 20 EURO For each child raised, regardless of the date of birth, a maximum of three points, that is, 36 months of child-rearing time, will be added to the parents’ retirement account. While the half-retirement point to be added will correspond to a salary increase of approximately 20 Euros if added to the pension with current figures, the increase in the payment period is expected to increase further with the periodic renewal of pension point values.
The German Pension Insurance Institution emphasized that the process requires a significant technical infrastructure, as it scrutinizes the previous working lives of many retirees and old legislation. While the law is expected to be implemented as of the new year, payments are expected to be made in 2028 at the earliest due to complex calculation processes. SOCIAL ASSISTANCE WILL ALSO BE UPDATED However, it was stated that there will be no loss in this process for the retirees who will receive the payment, all salary differences accumulated as of 2027 will be paid retroactively in one lump sum and a significant part of the retirees will not need to take any action for these payments.
In this context, it was learned that the German Pension Insurance Institution would automatically update the files in question, and it was stated that people who had not recorded their child-rearing periods in the retirement record or reported them to the system in the previous period should apply to the institution in order to benefit from this opportunity. On the other hand, while future increases in pensions are expected to affect social benefits, it was stated that income-based social benefits such as basic living support, rental assistance and education pension may be updated in parallel with the increase in pensions.
Comments
You can write your views about this story. Comments may be moderated according to site settings.