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The financial cushion of Deutsche Rentenversicherung has once again grown in the first half of 2014. 34 billion euros reserve are now in the pension fund. If it remains until the end of the year, the contribution for the statutory pension insurance would have to fall. This would be more than paradoxical.

After the so-called sustainability reserve of Deutsche Rentenversicherung (DRV) was already 31 billion euros at the end of 2013, the financial reserve was further expanded until the end of June 2014. With now 34 billion euros , the reserves are at an unprecedented record level . This reports the Handelsblatt, citing data from the DRV and the Federal Insurance Office. Compared to the same period last year, the pension fund has a total of 5.6 billion euros more.

Mega-financial cushion of the pension fund: pension contribution would fall in 2015

This sum corresponds to 1.85 monthly expenditure of the German pension insurance. If this level is maintained by the end of the year, the contribution rate for the statutory pension insurance would have to be reduced from the current 18.9 percent . The legislator then provides for a reduction if the pension fund’s reserves exceed 1.5 monthly expenses. However, this step would be very contradictory. Because of the pension package 2014, which includes, among other things, the mother’s pension and the pension at 63, the statutory pension insurance will be burdened in the coming months and years in addition billions. If the pension contribution falls in 2015, this would probably mean a drastic increase in the contribution rate for 2016.

Will the government again reduce the pension contribution rate?

So far, neither the Federal Ministry of Labor (BMAS) nor the DRV want to comment on a possible reduction in contributions. In view of the fact that the Federal Government had already prevented a reduction of 18.9 percent to 18.3 percent last year, a similar decision is expected this year. At that time the reason was that the Contribution Rate Act would ensure the “continuity, stability and planning security for the financing of the statutory pension insurance”.

Plus of 34 billion euros is eaten up by pension package

The reserves of the pension fund will probably not reach the current record level for a long time. Two factors are decisive for the renewed growth in the first half of 2014: On the one hand, the pension contribution has remained constant, on the other hand, the burdens resulting from the pension reform are only now taking effect. The pension package came into force on 1 July 2014. Only the mother’s pension, that is, the better recognition of the child-raising times of older mothers by another pension point, will in the future account for more than six billion per year. According to the Federal Ministry of Labor, the additional expenses for the statutory pension insurance in 2014 amount to about 4.4 billion euros, in 2015 already 9.0 billion euros.

Financial cushion of the pension insurance 2017 used up

Pension insureds can expect a decision only in the autumn. There are many indications that there will be no relief for them. On the contrary, you must even expect a higher financial burden from rising pension insurance contributions. The pension fund’s financial cushion will be nearly exhausted by 2017 at the latest – perhaps even earlier, should the economic situation deteriorate. By 2018 at the latest, either the financing of the pension package must be reconsidered or the pension contribution increased.