Pension chairman to settle dispute over childcare allowance

pension chairman to settle dispute over childcare allowance

Bundestag faction leader volker kauder (CDU) said on monday: "we want women who gave birth to children before 1992 to have more pension insurance periods recognized for them."The CSU, which has insisted on the childcare allowance in the face of opposition from the CDU and FDP, signaled its approval. The FDP and the union economic wing reacted against it rejectingly. It is unclear how the billion-dollar project will be financed.

Chancellor angela merkel once again made it clear to critics, including those in the CDU, that she is sticking to the childcare allowance. "The care allowance will come in the summer of 2013," she told the bielefeld "westfalen-blatt" (tuesday). Merkel warned against placing parents under general suspicion. "Most parents, regardless of income, decide responsibly what is right and important for their children."

Kauder told the "suddeutsche zeitung" (monday) that in addition to the childcare allowance agreed by the coalition, there should be a new pension entitlement. So far, parents whose children were born before 1992 are worse off in terms of pensions than parents of younger children. The women’s union, which has been calling for an improvement for a long time, buried the objection. "We want to continue to close the equity gap for mothers in retirement," says chairwoman maria bohmer.

Unlike childcare allowance, parents who put their children in daycare would also benefit from higher pension entitlement. According to expert estimates, such a regulation – if it becomes fully effective in some time – would cost up to an additional seven billion euros. The federal government probably had to pay this amount.

In the pension insurance, parents have been credited with different numbers of "earning points" up to now. For children born after 1. If a child is born on january 1, 1992, there are three points, and one point for older children. The newspaper writes that the amount of the pension depends on the points achieved in working life. One point is currently worth 27.47 euros in the west, 24.37 euros in the new states. The monthly pension for raising a child born before 1992 would increase by about fifty euros if the rules for younger children were brought into line.

CSU secretary general alexander dobrindt said: "the CSU has always been in favor of improving the pension situation for child-raising periods."This is also "not in contradiction to the care allowance, but both are correct and necessary". The chairwoman of the CSU state group in the bundestag, gerda hasselfeldt, called a better position for parents of older children "extremely desirable" on deutschlandradio kultur.

The federal government reacted with restraint. "Nothing has been decided, nothing has been decided at all. We are talking about it," said vice-government spokesman georg streiter. This discussion and the care allowance are "two completely separate, independent things". The family and labor ministries were open to the idea, but stressed that funding must be secured.

FDP faction leader rainer bruderle, on the other hand, said: "that is not agreed upon, on top of it". In the coalition agreement, the gradual introduction and payment of the care allowance was agreed upon – but "no interventions in the pension structure," bruderle emphasized.

The coalition leaders had decided in november to pay parents who look after their one- and two-year-old children on their own a monthly care allowance starting in 2013 – first 100 euros, then 150 euros.

SPD and greens reiterate their opposition to childcare allowance. This will also play a role in the election campaigns in schleswig-holstein and north rhine-westphalia, said SPD leader sigmar gabriel. "We will examine whether we can file a lawsuit."The ministry of family affairs, on the other hand, stressed that the draft legislation planned for the summer recess would be constitutionally sound. Grunen leader claudia roth said kauders compromise would not create any more childcare places.

Criticism was also voiced by the CDU/CSU’s association for small and medium-sized businesses and the economy. "Here, the future generation is being asked to pay extra to satisfy a day-to-day political dispute," said federal vice president jurgen presser.

A spokesman for the CDU/CSU parliamentary group rejected this. Kauders consideration refers to a CDU party conference resolution from last year. The deputy chairwoman of the german federation of trade unions (DGB), ingrid sehrbrock, told the "hamburger abendblatt" (tuesday) that increasing pension entitlements for parents could "at best be an alternative to care allowances".

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