Paradigm Shift in German Pension Policy: Measures Aiming at a New Public–Private Mix and their Effects

Schmähl, Winfried

doi:10.4337/9781781951040.00015

Cited by 15 publications

(9 citation statements)

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“…Some speak of a 'paradigm shift' (Schma¨hl 2004) and 'the most fundamental changes in pension policies since 1957' (Lamping and Ru¨b 2002: 5), whereas others (Kohl 2001; stress the continuity of welfare state reforms and the limited magnitude of the changes. It is important to note, however, that the ones that speak of 'system change' (Lamping and Ru¨b 2002: 8) put their emphasis on the more innovative elements of the reform (the strengthening of the second and third pillars), from which they expect a major transformation of the German system in the long run.…”

Section: The 2001 German Pension Reformmentioning

confidence: 99%

Pension Reform in Germany and Austria: System Change vs. Quantitative Retrenchment

Busemeyer

2005

West European Politics

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Section: The 2001 German Pension Reformmentioning

confidence: 99%

Pension Reform in Germany and Austria: System Change vs. Quantitative Retrenchment

Busemeyer

2005

West European Politics

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“…30 For a detailed analysis, see Schmähl (2003aSchmähl ( , 2004. 31 Parliament decided in 2004 that the two factors in the pension formula described above should not become fully effective if they would reduce the absolute amount of the pension benefit (negative adjustment rate).…”

Section: Further Structural Changementioning

confidence: 99%

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

Schmähl

2007

J. Soc. Pol.

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A paradigm shift in pension policy decided by the German red-green coalition government will considerably affect the level and structure of pension benefits as well as the mix of public and private old-age security arrangements. The article starts with a brief outline of the pension schemes as they had been designed before the recent decisions, and with a few remarks on the reasons for current reform debates. The major measures of the 2001 Pension Reform are then described. The focus of the article is on the effects of the reform for (personal) income distribution and institutional design. A partial shift from (mandatory) public (pay-as-yougo financed) pensions to (voluntary) private (capital-funded) pensions and from defined benefit towards defined contribution will, among other things, reduce the benefit level in the social pension insurance. A large number of contributors -even after many years of paying contributions -will only receive benefits below the social assistance level. It can be expected that this development will transform the present earnings-related statutory pension schemewhich has a strong contribution-benefit link and is aimed at income smoothing over the lifecycle -into a basic, highly redistributive pension scheme, aimed mainly at avoiding poverty. Income inequality in old age is expected to increase as a result of the new strategy in pension policy.

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“…The 2001 pension reform of the red–green coalition government has been dubbed by some observers a paradigm shift (Schmähl 2004, 2007). Here, the existing pay‐as‐you‐go statutory scheme covering basically all blue‐ and white‐collar workers was altered in a way that will probably lead to lower future benefits.…”

Section: Institutional Framework Of Choice In Germany: Examplesmentioning

confidence: 99%

When ‘Choice’ and ‘Choice’ Are not the Same: Institutional Frameworks of Choice in the German Welfare System

Blank

2009

Soc Policy Adm

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The creation and strengthening of welfare markets in Germany means that citizens can increasingly choose among competing providers of welfare goods and services. However, the conditions under which citizens may exercise choice in various fields of social policy are quite different. A major reason for these differences can be found in the public institutions that frame citizens' choice in welfare markets. This article analyses welfare markets in German health care, long-term care, pensions and employment policies, paying special attention to the respective public institutional frameworks. It will be argued that differences between frameworks of choice can be categorized by means of four parameters representing different aspects of public involvement in welfare markets. Depending on the kind and the degree of public involvement, welfare markets may be compatible with 'traditional' notions of public responsibility for citizens' social security.

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Paradigm Shift in German Pension Policy: Measures Aiming at a New Public–Private Mix and their Effects

Cited by 15 publications

References 0 publications

Pension Reform in Germany and Austria: System Change vs. Quantitative Retrenchment

Pension Reform in Germany and Austria: System Change vs. Quantitative Retrenchment

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

When ‘Choice’ and ‘Choice’ Are not the Same: Institutional Frameworks of Choice in the German Welfare System

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