GERMANY - Union members within the German Federation (DGB) protested outside the Bundestag (parliament) today as the lower house passed a law raising the retirement age from 65 to 67 by a vast majority.
If passed by the upper house, the retirement age will gradually rise from 2012 until it reaches the new agreed level in 2029.
Unions have voiced their anger at the move by Angela Merkel’s coalition government to raise the pensionable age, when 1.2 million over 50s in Germany are out of work.
The government asserted the measure had been taken to reduce strains on employers’ contributions which should now stay below 20%.
It also claimed that around a third of this year’s €351bn budget has been allocated to topping up the state pension but retirees would still have to wait until 2009 for a higher income.
A buyout tool which provides schemes with up-to-date pricing and comparisons between insurers has been launched by JLT Employee Benefits.
The DB white paper sets out plans to review the funding regime, with 'prudent' and 'appropriate' possibly redefined. But James Phillips asks if this could this signal a return to an MFR-like approach?
The trustees of GKN's pension schemes have agreed a package of mitigation measures that would improve funding to a "more prudent level" if Melrose's offer is accepted by shareholders next week.
While the new powers are welcome, most respondents doubt it will make a difference to the outcomes for members, Pensions Buzz respondents say.