Abstract

• Support for private LTC plans
• Subsidy of € 5 €/month if the insured pays at least €10/month into plan
• Legal obligation to contract; no proof of good health
• Minimum age 18 years; not in receipt
• Waiting period five years
• Insurance is activated if the client develops LTC needs/major general care needs
• Benefit rate in LTC level III at least € 600 €

I. Plans – Coalition Treaty Legislative procedure
1. Step of the LTC reform:
• Dynamisation of benefit rates by 4% as of 1.1.15
• Increase in contribution rate to 2.35% as of 1.1.15
• LTC provident fund
– LTC insurance fund administered by the Deutsche Bundesbank
– Means: 0.1 contribution rate points/year
– Savings period 20 years; afterwards input only to stabilise contribution rate
2. Step of the LTC reform (Plans 2014/2015):
• Contribution rate to rise by 0.2% to finance a new definition of LTC needs

II. Care-giving leave: current status
• Care-givers: assisted by pension insurance and covered by accident insurance
• Care-giving Leave Act – 2 timeframe-related provisions:
• Statutory right to take up to 10 days leave at short notice to (organise) care for a relative with care needs
• Statutory right to take up to six months off work to care for a relative with care needs
• Social insurance coverage for employees Family Caregiver Leave Act
• Eligible working hours reduction to not less than 15 hours for not more than 24 months without statutory right
• Employer to top up caregiver‘s salary by half the foregone amount 54
• In the post-caregiving period, salary remains at reduced rate until the advance granted on it is settled
• Combination of part-time work and recognition under pension law can secure pension entitlements at about the level of full-time workers

III. Care-giving Leave: Plans
• Creation of a statutory right to stay away from work for up to 24 months to care for a relative
• Employees to be supported by either wage compensations or by interest-free loans
• Aim: Further improving the balance between work and care-giving responsibilities

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