Germany: trade unions and the SPD support mandatory occupational pensions

Featured image of the article Germany: trade unions and the SPD support mandatory occupational pensions
In the wake of preparations for a german major pension reform, occupational pensions, which were already revised by a law that entered into force last 22 January, are back at the centre of debate. Strengthening them within the future pension insurance system is universally supported. For their part, unions and the Social Democratic Party (SPD) are loudly demanding that they become mandatory, while employers' organisations are firmly opposed. Here is an update on the situation and the proposals.
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The strengthening of occupational pensions in the upcoming reform of pension insurance funding is on everyone’s lips. This comes paradoxically even though a new law aimed at strengthening occupational pensions (Betriebsrentenstärkungsgesetz) has only just entered into force on 22 January 2026. This “strange” timing is due to the fact that the latter is a resumption of a bill prepared by the previous government, which could not be voted on due to early elections. The text of the Betriebsrentenstärkungsgesetz aims to widen access to the scheme and strengthen it. It targets low-income employees and workers in small and medium-sized enterprises as a priority, where coverage remained insufficient.

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