The German United Services Union (Ver Di) has raised further concerns over the mandate of the new Pension Commission, warning that the commission must not become a gateway for worse pensions.

German Chancellor, Friedrich Merz, recently announced that the government was launching a Pension Commission to build on the reforms passed as part of the Second Occupational Pension Strengthening Act (BRSG II).

However, Ver Di raised concerns over the remit given to the commission, arguing that the mandates given are "all predetermined decisions for the commission's work, which Ver Di views with extreme scepticism".

While most insured individuals already fail to reach the gradually increasing retirement age, the union said that many of the proposals being considered could exacerbate these issues.

In particular, it warned that extending working life by raising the retirement age and linking pension adjustments to parameters other than wage growth, such as the inflation rate, would be detrimental to both future and current pensioners.

"Any further increases would amount to a pure pension-cutting program, especially for people who are unable to work for health reasons," Ver Di chairman, Frank Werneke, said.

"Linking pension adjustments to inflation would also reduce the purchasing power of pensions, leading to increased poverty among the elderly."

In addition to this, the union rejected the idea of a "catch-up factor".

It also reiterated concerns that the composition of the pension commission is problematic, as Werneke pointed out that "commission members who do not themselves pay into the statutory pension scheme are supposed to advise and make decisions for the normal contributors.

Amid these concerns, and seemingly seeking to strengthen its voice, the union also urged the CDU/CSU to abandon its blockade of the ‘National Action Plan’ to strengthen collective bargaining, arguing that more collective bargaining coverage means higher wages, less poverty in old age, and better working conditions.

"The fact that the Federal Cabinet has not decided on the ‘National Action Plan’ sends a bad signal to millions of employees who have no collective bargaining protection whatsoever,” Werneke said.

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