Would it help if civil servants and the self-employed contributed to the pension fund? - Pension Reform: Integrating Civil Servants and Self-Employed Could Boost Payments, Not Pensions
The annual subsidy from tax funds to the pension insurance stands at 116 billion euros. Discussions are ongoing about integrating civil servants and the self-employed into the statutory pension system, which could have significant financial implications.
Currently, civil servants' pensions average around 66.8% of their last basic salary, with an average monthly pension of €3,240. Integrating them into the statutory system could increase state payments, though no precise estimate is available. Including the self-employed and future civil servants initially lowers contribution rates for all insured persons. However, extending the circle of insured persons is not a guaranteed fix for the pension fund.
The state already pays civil servants an additional supplementary pension, averaging €3,240 per month, more than double the statutory gross pension. This costs the state over 53 billion euros annually. While including the self-employed has minor favorable effects on the pension fund in the 2030s, these effects decrease after the first self-employed retirees. By 2080, the positive impact remains minor. However, the positive effect on contribution rates reverses due to higher pension benefits, likely around the mid-2070s.
Integrating civil servants and the self-employed into the statutory pension system could have both short-term and long-term financial implications. While it may initially lower contribution rates and have minor positive effects, it also increases state payments and could reverse the positive impact on contribution rates in the future. Extending the circle of insured persons is not a panacea for repairing the pension fund.
