Dismantling an Earnings-Related Social Pension Scheme: Germany's New Pension Policy

Schmähl, Winfried

doi:10.1017/s0047279406000626

Cited by 45 publications

(32 citation statements)

References 10 publications

(10 reference statements)

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“…Following the recommendations of a reform commission, the inclusion of a so called 'sustainability factor' (the changing ratio of pensioners and insured) will lead to a further decline of the replacement rate when the adjustment of the value of one 'earnings point' , relevant for both new and current pensioners , will lag behind the growth of average covered earnings (cf. Schmähl 2007). The net standard replacement rate is going to drop from about 69 percent at the beginning of this decade to about 52 percent in 2030.…”

Section: Pension Policy: Adopting the Multi-pillar Approachmentioning

confidence: 99%

A Long Goodbye to Bismarck? : The Politics of Welfare Reform in Continental Europe

Palier¹

2010

244

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Section: Pension Policy: Adopting the Multi-pillar Approachmentioning

confidence: 99%

A Long Goodbye to Bismarck? : The Politics of Welfare Reform in Continental Europe

Palier¹

2010

244

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“…A more dynamic model of institutional development is now generally accepted, with the debate focussing on the extent to which core complementarities are maintained in the face of dynamism (e.g., Hancké et al, 2007). Certainly, reformers had promised that the new private pensions would fill the gaps left by public retrenchment, maintaining existing replacement rates (Schmähl, 2007). The new public/private pension mix could be similarly understood as a functional equivalent to the previous public system.…”

Section: Liberalisation or Dualisation?mentioning

confidence: 99%

The Liberalisation of the German Social Model: Public–Private Pension Reform in Germany since 2001

Bridgen

Meyer²

2013

J. Soc. Pol.

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Some commentators view reforms to the German political economy since the 1990s as constituting a broad liberalisation of a previously coordinated market economy (e.g., Streeck, 2009). Others argue that by maintaining protection for core workers the reforms represent a dualisation rather than liberalisation (e.g., Palier and Thelen, 2010). This debate has paid little attention to public-private pension reform since 2001. This paper argues that pensions have been a crucial component of the German social model since 1957 and demonstrates why comprehensive analysis of its development must consider them. After summarising how public and occupational pensions have supported core German workers since 1957, the paper calculates core workers' projected net pensions and those of less privileged employees before and after recent reforms. On this basis, it concludes that pension reforms have created a system more characteristic of a liberal than a dualised political economy. Since the reform, the projected pensions of today's young workers are closer to the poverty line, and the gap between the projected benefits of core and peripheral workers has narrowed. Increasingly, as young core workers age, they will thus have less incentive to invest in employer specific skills, a development that threatens the model as a whole.the liberalisation of the german social model 59 Note 1 Coverage numbers did not decline further despite scheme closure to new members because overall industrial employment declined between the mid-1980s and mid-1990s, reducing the pool of workers used for calculating coverage rates (Ruppert, 1997).

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“…Future pensioners will only be able to enjoy a pension with an approximate replacement rate level of 70 percent, if they are covered by additional occupational or private arrangements. This change will very likely once again lead to an increase in pensioner poverty in the future (Schmähl 2007). Although overall occupational pension coverage has increased in all sectors after the pension reform of 2001, coverage in the industrial sectors is very uneven, similar to the United States (see table 3).…”

Section: Social Protection In Post-industrial Welfare Capitalism: a Smentioning

confidence: 99%

Welfare Systems in Europe and the United States: Conservative Germany Converging toward the Liberal US Model?

Seeleib-Kaiser¹

2013

International Journal of Social Quality

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This article demonstrates how the Conservative system of social protection in Germany has been converging toward the Liberal American model during the past two decades, focusing on social protection for the unemployed and pensioners. In addition to public/statutory provisions, occupational welfare is also covered. Despite an overall process of convergence, we continue to witness stark dissimilarities in the arrangements for social protection outsiders: whereas Germany continues to constitutionally guarantee a legal entitlement to minimum social protection for all citizens, such a guarantee does not exist in the United States. The lack of such legal entitlement for poor people of working age, combined with the criminalization of the "dangerous class," is a key differentiating characteristic of the US model at the beginning of the twenty-first century. The findings confirm but also qualify Franz-Xaver Kaufmann's analysis of the United States as "capitalism," which lacks collective welfare responsibility for all citizens, as compared to Germany's "welfare state."The welfare state is the political project to construct a collective institutional framework protecting and furthering the individual welfare of all who belong to a certain commonwealth. Though political legislation and public regulation are essential elements of the idea of the welfare state, public administration of the services is not.-F.-X. Kaufmann, European Foundations of the Welfare StateThe U.S. does have a welfare sector, albeit a comparatively fragmented one, but it is not a social or welfare state. As a country it has no comprehension of public responsibility for the basic aspects of well-being for all citizens.-F.-X. Kaufmann, European Foundations of the Welfare State

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Dismantling an Earnings-Related Social Pension Scheme: Germany's New Pension Policy

Cited by 45 publications

References 10 publications

A Long Goodbye to Bismarck? : The Politics of Welfare Reform in Continental Europe

A Long Goodbye to Bismarck? : The Politics of Welfare Reform in Continental Europe

The Liberalisation of the German Social Model: Public–Private Pension Reform in Germany since 2001

Welfare Systems in Europe and the United States: Conservative Germany Converging toward the Liberal US Model?

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