Tax money for nursing care pension? Capital pension as a way out of the billion dollar hole

“Financing pension contributions through taxes would be the right way,” believes Constantin Papaspyratos. The chief economist of the consumer protection association Association of Insured Persons is a member of the Expert Council on Care Finance, which was founded by the Association of Private Health Insurers (PKV Association).

Although politicians have defined pension contributions for caring relatives as a task for society as a whole, they are currently paid for from the contributions of the insured. “This is a classic non-insurance service,” emphasizes Papaspyratos.

The Pension Commission had proposed adding a capital pension to the pension system, which was previously financed purely on a pay-as-you-go basis. Part of the pension contributions should be invested on the capital market, and the resulting income should later increase the pensions of the contributors. “Depending on the age of the caring relative, you could then think about paying a higher proportion of the contributions into the capital pension,” suggests Papaspyratos.

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In general, from the federal government’s point of view, it is advisable to deal with the issue of non-insurance benefits at an early stage, says the BdV chief economist and refers to a lawsuit by the health insurance companies, which, in case of doubt, was filed before that Federal Constitutional Court should be worn. The health insurance companies are demanding that the federal government contribute more to the health costs for citizens’ benefit recipients. This is also a non-insurance benefit.

“The federal government has to get involved here, otherwise the courts will ultimately decide,” warns Papaspyratos.

The consumer advocate also finds support from the PKV Association. Its managing director Florian Reuther also called for non-insurance services to be financed from tax revenue. “That would distribute the costs fairly and constitutionally and relieve the burden on non-wage labor costs.”