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Welfare Reform on the Web (February 2001): Pensions - Overseas

PENSION REFORM UNVEILED

Anon

European Industrial Relations Review, no.322, Nov 2000, p.22-24

Article reviews some key points of the planned reform of German State pensions. Under the reforms the value of the state pension will fall from its current level of some 70% of net earnings to 64% of net earnings by 2030. In order to make up the shortfall, workers will be encouraged to invest 0.5% of gross pay annually in a private pension scheme. This will be increased by 0.5% a year, reaching a planned level of 4% by 2008. These proposals have been criticised to some extent by all interested parties.