Pension Policy International (09.07.2021) Germany’s basic pension scheme kicks off this July Shortly before the federal election in September, Germany’s coalition government is finally delivering on its promise to top-up insubstantial pension benefits to ensure a basic standard of living for all retirees who have contributed to the social security system. Under the new system, anyone who has contributed towards a German pension for at least 33 years will qualify for a basic pension. This includes not just time spent working, but also time taken out to raise a family or care for a relative. Mini-jobs subject to pension insurance as well as military service or political imprisonment in the German Democratic Republic (GDR) are also taken into account, but periods of receiving unemployment benefits are not. The idea is to give an income supplement to those who have contributed towards a pension for a long period of time but – due to having a lower salary or fewer working hours – have not built up a sufficient pension entitlement to ensure a basic subsistence level. Federal Labour Minister Hubertus Heil expects 1,3 million people will be eligible for the basic pension – 70 percent of them women.