Pensions and pensions: civil servants are more equal

R duck? Which pension? At least that's how it feels for many people. That's why there should now be a retirement savings account, a new state-funded supplementary pension. It will be available from January 2027, is intended to supplement the statutory pension and has a promise: more stocks, ETFs, potential returns. In the words of the Old Age Security Commission it sounds like this: “An efficient interlinking between structures of the statutory capital pension... the retirement savings account and the early start pension will enable people to build up cost-efficient, funded retirement provision from the age of six until retirement over a long savings period.”

Since the state should treat its citizens equally, it stands to reason that civil servants should also receive help in setting up a funded pension plan. But how far is there with equal treatment among civil servants? First of all, there are risks that civil servants are not exposed to, such as unemployment. Therefore, the state must treat civil servants differently by exempting them from unemployment insurance. To insist on equal treatment here would be irrelevant. The situation is different when it comes to hedging health risks. There are no objective reasons for unequal treatment here. Nevertheless, there is preferential treatment of the civil service. This is particularly present in the minds of people who are legally insured and are looking for a doctor's appointment.

is a professor at the FOM University Düsseldorf for the areas of Finance & Data Science.

Civil servants have private insurance and are not only treated better when making appointments. The financial impact of illness also feels different for civil servants than for the rest of the population. While continued payment of wages for workers and employees in the event of illness is limited to six weeks, civil servants continue to receive their full salary indefinitely in the event of illness. There is no reduction after six weeks.

The taz is an independent, left-wing and opinionated daily newspaper. We have been arguing in our comments, essays and debate texts since the taz was founded in 1979. We often cannot and do not want to agree on an opinion. That's why you'll find some completely opposing positions here - all part of the very broad left-wing spectrum of opinions.

Now one could object that this unequal treatment has nothing to do with the issue of retirement provision. However, they already give an idea of ​​the direction of effect of further existing unequal treatment: civil servants experience a better position, in areas that cannot be objectively justified. Example of pensions and pensions: Civil servants do not receive a statutory pension in old age, but rather a pension. The maximum rate of “retirement salary” after 40 years can be 71.75 percent, while an average earner in the statutory pension insurance ends up with roughly half of his last gross income after 45 years of contributions.

This comparison becomes even clearer in euro amounts. According to the Federal Statistical Office, pensioners received an average of 3,416 euros gross per month last year. According to the pension insurance, the average pension, however, is 1,301 euros. After deducting health and nursing care insurance contributions, 1,154 euros remain. This means that pensions are on average 2.62 times as high as pensions.

One objection to comparisons based on averages is that they ignore differences in qualifications and other essential characteristics of a person. If the civil service consisted only of highly qualified scientists, a higher level of pay and therefore pensions would be expected for this reason alone. However, if you compare civil servants and non-civil servant professors, it becomes apparent that non-civil servants earn significantly less than, for example, civil servant professors at a state university of applied sciences. Not to mention retirement planning.

Or company pensions. If you look at the average company pensions in Germany, which are well below 1,000 euros, it becomes clear that the aforementioned difference in gross monthly salaries in retirement is not compensated for. This also applies to other retirement income such as rental income: job security allows civil servants to take out higher loans for real estate financing than workers or employees.

So it can be summarized: There is no supply gap for civil servants. In view of the pensions, there is also no fear of poverty in old age, which affects many others who are dependent on the statutory pension. Even the minimum pension for civil servants is just over 2,000 euros gross per month - significantly higher than the average pension. This implies that as a normal citizen you can only get close to the minimum pension of a civil servant if you have an above-average pension.

So why should civil servants also benefit from retirement savings? You are definitely not suffering from undersupply. The Old Age Security Commission has recognized this and is proposing the opposite of further preferential treatment for civil servants, namely to transfer the reforms of the statutory pension insurance to civil servant pensions with the same effect. The retirement age could also be increased as life expectancy increases. The fact that civil servants still benefit from the retirement savings account can be seen as a slap in the face to the Retirement Security Commission.

A government that feels responsible for the entire country should ideally spread cuts across all groups that burden the state budget and focus benefits on those in need. Pensioners and well-off pensioners – for example with generous company pensions – are not counted among those in need. Instead, an already very well-provided group is protected and additionally supported with the retirement savings account. The population is already aware of the special situations faced by civil servants - and is diligently writing letters to the relevant ministries. These will not decrease, on the contrary. This unequal treatment is likely to be reflected in the results in upcoming elections.