|
KMID : 1124020150310030025
|
|
Korean Social Security Studies
2015 Volume.31 No. 3 p.25 ~ p.47
|
|
|
Comparison Of German Public Pension Scheme And German Government Employees Pension Scheme
|
|
Kim Sang-Ho
|
|
|
Abstract
|
|
|
|
German National Pension Scheme which is based on the Bismarckian social insurance principle is financed mainly by the contribution. On the other hand, German Government Employees Pension Scheme which is based on the alimentation principle, is financed by the government budget. Both of them are income proportional scheme, and apply the same minimum insurance period for the old age pension and widow pension level. They differ, however, in that there are minimum pension and pension amount increases using wage indexation in the Government Employees Pension Scheme. The EET (exempted-exempted-taxed) system in the contribution-management-payment for the formation of pension was introduced in German National Pension Scheme in order to solve the problem connected with the equal treatment in the income tax with Government Employees Pension Scheme. About 3/4 of the households which currently receive pension from National Pension Scheme are exempted from income tax because pension amount is low and income deduction applies. In contrast, retired civil servants except for an exceptional case of low pension amount pay income tax due to high pension amount and income tax rate. Reform was carried out in German Government Employees Pension Scheme in accordance with the fundamental reform which was implemented in German National Pension Scheme since 2001.
|
|
|
KEYWORD
|
|
|
German National Pension Scheme, German Government Employees Pension Scheme, comparison of schemes, pension reform, financial stability
|
|
|
FullTexts / Linksout information
|
|
|
|
|
|
Listed journal information
|
|
|