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Many Economists have pointed out that capital-funded pension systems are superior to pay-as-you-go-financed systems of old-age insurance; different proposals for reforming the German pay-as-you-go pension system have been presented. Although the necessity of a fundamental reform is almost common sense, consequent changes are regularly rejected by referring to lacks of economic justice. This paper analyses, what kind of reform serves justice from a constitutional economics point of view. Criteria are developed, which individuals behind a veil of ignorance would agree on and which therefore should be met by any reform proposal. Using these criteria, three prominent proposals for reforming the German public pension system are analysed.

Konstitutionenökonomische Bewertung eines Systemwechsels im deutschen Rentenversicherungssystem