Authors: Michael Stegmann, Ulrich Bieber/Locations: Würzburg, Rheinbach
Even though the German statutory pension scheme is mainly contribution-orientated, there are some elements that are socio-politically motivated and aimed at social balance. The authors describe these elements and their effects on pension entitlements. A distinction is drawn between the elements of pension entitlements that are rooted in social balance and those mainly arising from employment that is subject to social insurance contribution.
The analyses are based on the following assumption: The elements rooted in social balance can be measured by comparing the part of the pension entitlement directly stemming from employment periods to the pension entitlement as a whole, because all earnings points (“Entgeltpunkte”) exceeding those based on social insurance contributions arise from social provision. The localization and estimation of the ele-ments of social balance in the pension entitlements is based on micro data in the scientific use files on finalized insurance biographies 2007 („Vollendete Versi-chertenleben 2007“).
Firstly, the analysis shows that the pension amount primarily depends on the contri-butions paid in periods of employment. Futhermore, it reveals that the principle of social balance that amends the merit principle hits the target by privileging groups of persons with a comparatively deprived pension level. Another essential result of the analyses is that long-term unemloyment is a characteristic feature for a high grade of social balance in male biographies. As far as women are concerned, housekeeping and child raising periods play a similar role.
