Pension provision: (still) a public task?

Comparative studies point out that many pension systems show distinct combinations of public and private provision of pension benefits. This chapter uses the German case as an example to discuss the (changing) role of the public sector in pension provision, but also the legitimacy of public involvement in this policy area. The German system of pension provision was subject to major reforms from 2001 onwards that shifted the pension system from a single-pillar model of pension provision towards a multi-pillar model, thus redefining the public-private mix in pension provision. It is argued that the concept of privatization may help to understand general developments in German pension policies. Privatization, however, may be conceived as a rather complex phenomenon that may also include a new definition of the role of the state. Also, the reform of occupational pensions in the wake of the reform of the statutory pension insurance raises questions about the definition of the public and private sectors of welfare provision. This chapter argues that the privatization of pension policies leads to problems with respect to adequate and encompassing pension provision. In contrast to an argument brought forward by Heath (2011) that public provision of pensions may be justified because it is more efficient than private provision, it is argued that the main reason why there should be public responsibility for the provision of old-age benefits rests on communitarian reasoning as understood by Heath.Heath, J. (2011). Three normative models of the welfare state. Public Reason, 3(2), 13–43.