IG BCE and chemical employers propose pension reform compromise

The IG BCE union and the Federal Employers' Association of the Chemical Industry (BAVC) have submitted a joint plan to the German government aimed at restructuring pension benefits for long-term insured individuals. The proposal seeks to address the debate regarding early retirement at age 63 by limiting the eligibility for pension payments without deductions to those with actual years of contribution.

Under current laws in place since 2014, more than 250,000 people annually qualify for early retirement without deductions by counting periods such as unemployment benefits, military or civil service, and child-rearing toward the required 45 years. The new proposal would restrict this by only recognizing actual contribution years.

To protect workers in physically demanding roles, the social partners suggest a hardship clause. For individuals exposed to extreme conditions, such as continuous shift work, night shifts, or chemical and physical stressors, the proposal suggests lowering the requirement from 45 to 35 contribution years and halving the applicable pension deductions.