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Gesetzliche Rente: Bedeutet Teilhabeäquivalenz Verteilungsneutralität? — Ein weiterer Irrtum

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  • Friedrich Breyer

Abstract

A basic principle of statutory retirement insurance in Germany is the proportionality between earnings and retirement benefits called “Teilhabeäquivalenz”. Advocates of the system defend this principle, arguing that it ensures distributive neutrality. However, this assertion is wrong because the principle combines two concepts with different time dimensions: lifetime contributions and monthly retirement benefits. If clearly defined population groups differ in their life expectancy, then this very principle achieves income redistribution, in the German case from low earners to high earners. We propose a simple change in the rules which would avoid this undesirable redistribution. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Friedrich Breyer, 2013. "Gesetzliche Rente: Bedeutet Teilhabeäquivalenz Verteilungsneutralität? — Ein weiterer Irrtum," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 93(2), pages 117-119, February.
    • Handle: RePEc:spr:wirtsc:v:93:y:2013:i:2:p:117-119
    DOI: 10.1007/s10273-013-1494-4
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    Keywords

    H55;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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