Breadcrumb

Act to amend the statutory social security (Rentenreformgesetz (RRG) 1999).

Country(ies)

Germany

Subjects (Classification)

Old-age, invalidity and survivors benefit

Adopted on (Date of text)

1997-12-16

Scope of text

National

Type of legislation (Type of text)

Law, Act

Abstract/Citation

Amends numerous social security laws to reform the social security system. Inter alia, introduces a new demographic factor for the calculation of social security benefits so as to take into account longer life expectancies and age distribution in the population. Revises the system of social security benefits in cases of unemployment or reduced income. Establishes a tiered benefits system which entitles persons who work less than 3 hours a day to full reduced-income benefits; to those who work under 6 hours, half of such benefits; and no benefits for those who work over 6 hours a day. Benefits shall be calculated according to inability to work in general, as opposed to the previously operating principle of "inability to exercise a [chosen] profession." Increases the age of entitlement to full benefits for women to 63 years (although reduced benefits shall still be available at age 60), and increases the amount of benefit for child-rearing. Finally, amends the obligations of enterprises to adjust their pension funds to increases in the annual cost of living.