Europe in late June decided to test everyone's limits, and Germany decided this was the right moment to release a 33-point pension reform. Today, we are covering the reform and what it could mean for international workers in practice. We are doing a deep dive into a visa route I've been working with lately (which is not too well known). There is also the usual personal update, which involves the heatwave, a leaking bathroom, and the London Calling.
What's Happening
Germany’s pension reform: what’s changing, and on what timeline
The government commission released 33 proposals on June 23rd. The core change: retirement age linked to life expectancy starting in 2032, with the long-range projection landing at 70 by 2091 (69 by 2071) - a huge LOL here already. The reform also introduces a mandatory capitalized savings component (starting at 0.5% of gross salary in 2028, rising to 2% by 2031, split equally between employer and employee), and eliminates early retirement at 63. New self-employed workers and board members get folded into the mandatory system too.
Sixty-seven (6/7) was already (way) too high - for anyone who knows me personally, you know that working is not my fav. The idea that it could reach 70 over the next few decades is bonkers to me but unfortunately not a distant abstraction; it is a direction being locked in now, and it will disproportionately affect workers in physically demanding jobs who will simply not get there in good health. For internationally mobile workers who may spend years contributing to the German pension system without ever drawing a full benefit from it, the reform also raises questions about portability and long-term value that the commission does not appear to have considered worth addressing.
The Spotlight: Deep Dive
The Vander Elst Visa: What it is and when you need It
Currently preparing several of these applications, so I thought I'd share what this is.
Having a valid work and residence permit in an EU member state doesn't automatically give you the right to work in another one. I think we can all agree that we knew this. But sometimes, European companies need to send their people across borders to deliver a service. In 1994, the European Court of Justice decided on a case in which a Belgian employer challenged France's requirement that his legally employed Moroccan workers obtain a separate work permit before providing services there. The court sided with him. Under EU freedom of services principles, a company established in one EU member state can post non-EU employees to another for temporary service assignments, without needing additional work authorization at the destination. This case became known as Vander Elst, and the visa route it created took the same name.
So what does it mean in practice? If your company is based in the EU or EEA and you are not an EU citizen, your employer can second you to Germany for a service assignment without needing the federal employment agency to approve it. No labor market test, no standard German work permit process. That part is the good news.
But there is a catch: if your assignment runs longer than 90 days, you still need a visa. That is the Vander Elst visa, a national visa that confirms the posting is legitimate. The basic conditions that have to be met: you are genuinely employed by the sending company, the assignment is tied to a real service contract between your employer and a German recipient, and you have health insurance for the duration. You apply for it before entering Germany, not after.
The funny part is, even though this was a decision of the European Court of Justice, most EU countries have not implemented it like Germany does. So if someone is posted to another EU country, it is actually quite the headache immigration-wise (so I've been told!).
What's New With Me
Survived the heatwave. I spent most of last winter complaining that my apartment was too cold (I have poor insulation), so I am choosing to see the silver lining: it peaked at 28 inside. Relative victory. I have also decided to never ever complained again that I am too cold.
The other current situation: a new leak from upstairs (after the on-going shower leak), which has meant a lot of time on the phone with contractors and the property management. The unexpected upside is that I got to meet my upstairs neighbor, who is genuinely lovely. We already agreed on having a drink when this is all sorted!
Heading to London next weekend and very much looking forward to it 🙂 If you have a strong opinion about where to have coffee or lunch, I will take it seriously.
Worth Reading:
Police open fire in Berlin for the only time in their life in a good way - Berlin police deployed water cannons at the Brandenburg Gate during the heatwave, with significantly gentler jets than the protest version. Germany recorded its highest temperature ever at 41.3°C. Meanwhile, French police is destroying inflatable pools and forbidding people from swimming in the Canal Saint Martin during the heatwave.
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Until next time,
Deep in Q3 planning over here, with some new projects in the works. More on that soon. London first, contractors second, newsletter third.