Mother's pension: Union and SPD are planning massive reform, but who pays?

The political debate about maternal pensions is gaining momentum. The Union and the SPD are planning an expansion of the mother's pension, which should enable all parents to receive three pension points, regardless of the year of birth of their children. This has already been done by fr.de reported. However, the German pension insurance expresses concerns about the high costs and questions the financial feasibility of this expansion.

When the mother's pension was introduced, which came into force on January 1, 2014, there were no targeted contributions to the pension fund for this benefit. Parents who are not employed to raise children do not make their own contribution. However, the federal government covers contributions for child-rearing periods for births from 1992 onwards. Currently, up to 2 years and 6 months are counted for children born before 1992, while for children born in 1992 it is up to 3 years. In total, parents can have up to 10 years of child consideration periods credited, regardless of the year of birth. The estimated cost of the mother's pension is around 25 billion euros for 2025, with an increase to around 27 billion euros by 2027.

Criticism and demands

Critics point out that there is no direct reimbursement for maternal pensions and that the subsidies provided are considered inadequate. Gundula Roßbach, President of the German Pension Insurance, calls for financing through tax revenue, as without this there is a risk of an increase in pension insurance contributions of 0.25 percentage points. Anyone who receives a pension and whose calculation includes child-rearing periods for children born before 1992 is entitled to the mother's pension. These times are usually assigned to a parent, usually the mother. Fathers, same-sex parents, adoptive and foster parents, and grandparents can also apply for credits.

Another point in the discussion is the question of mother's pension III, which is being considered by the Union and the SPD, but whose implementation is still uncertain. So far, the mother's pension depends on the quality of the parenting periods, which were expanded by the law on mother's pension II from July 1, 2019, and provides for the crediting of up to 2.5 years of child-rearing for children born before 1992.

In addition, statutory pension insurance aims to compensate for limited employment after birth by recognizing parental leave, such as deutsche-rentenversicherung.de reported. If there are several children, the child-rearing period is extended accordingly, so that, for example, up to five years can be taken into account for twins born before 1992. Child-rearing time can only be assigned to one parent at a time, usually the mother, but it is also possible to transfer child-rearing time to the father, provided both parents declare this in writing.