Left calls for pension reform for the self-employed

Berlin – Due to financial missteps by individual professional pension funds in Germany, the Left Party in the German Bundestag is advocating for the restructuring of retirement provisions for the so-called liberal professions. "The special path of pension funds as a component of the first pillar of retirement provision must be re-examined," demanded Sarah Vollath, spokesperson for pensions and retirement security policy for the Left Party, in an interview with the newspapers of the Funke Media Group (Tuesday editions). Those who wish to supplement their pension with market speculation can do so, the politician stated. However, many workers in regulated professions are exempting themselves from statutory pension insurance due to their pension privileges, thereby losing their retirement security guarantee. "Good retirement provision should not depend on whether investments in corporate equity and start-ups yield returns. That's why we are calling for a general employment insurance scheme, into which everyone must pay and through which everyone is protected," Vollath continued. Across Germany, doctors, lawyers, tax consultants, and architects pay into so-called pension funds for their future retirement income – as a replacement for the statutory pension. Membership is not voluntary. In total, the pension funds manage investments totaling approximately €300 billion. However, in recent years, some of the 91 pension funds across Germany have repeatedly run into financial difficulties. At the pension fund of the Berlin Chamber of Dentists (VZB), losses from investments now amount to a "high three-digit million amount," VZB Administrative Committee Chairman Thomas Schieritz told the Funke media group newspapers. A good 10,000 dentists from the capital, Brandenburg, and Bremen are members. At the end of 2023, VZB's invested assets were still valued at €2.2 billion, according to the annual report. The Left Party is now demanding that the Berlin case be addressed: nationwide minimum rules and genuine oversight are needed, said Left Party MP Vollath. "We demand state supervisory bodies instead of self-governing chambers, strict quotas for illiquid and risky investments, mandatory stress tests, and complete portfolio transparency," she continued. Furthermore, board members should be held personally liable, bonuses should be reclaimed in the event of losses, whistleblowers should be protected, and member rights should be strengthened, the Bundestag MP stated.