Professor Eckhard Janeba Contributes to the Expert Opinion on the Future of the Statutory Pension Insurance Scheme

Recently, the Board of Academic Advisors of the Federal Ministry for Economic Affairs and Energy published an expert report in which they proposed re-structuring the statutory pension insurance scheme. Prof. Dr. Eckhard Janeba, Professor of Economics at the University of Mannheim and a member of the Board of Academic Advisors, contributed to the expert opinion.

At the beginning of June, the Board of Academic Advisors presented its expert opinion on the statutory pension insurance scheme. The researchers say that the statutory pension scheme will experience a funding crisis they describe as “funding shock”. Due to the pandemic, the shock will come sooner and will be greater than anticipated.

A working group consisting of five members of the Board of Academic Advisors worked on the expert opinion. Prof. Janeba was part of that group. The internationally renowned researcher worked primarily on the question if the federal government can continue the current policy of sticking to the so-called stop lines (Haltelinien) if the government increases federal funding. The stop lines set forth that the standard pension level does not fall below 48 percent of average earned income and the contribution rate does not exceed 22 percent.

On behalf of the Federal Ministry for Economic Affairs and Energy, xxx also looked at the income tax potential to secure the financing of the pension scheme. He also contributed to the research on the political economy of pension scheme reforms.

For more information on Prof. Dr. Eckhard Janeba, please see: https://www.vwl.uni-mannheim.de/en/janeba/

 

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