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Within the last years, the development of the pension value (Rentenwert), which determines the size of public pension benefits in the German public pension system, was strongly affected by discretional changes in the method of its calculation. The aim of the present study is to shed light on the influence of these changes. To do so, we calculate the pension value for a number of hypothetical scenarios on an ex-post basis and compare results with each other. The key issue of our analysis is to quantify the isolated effects of the components included in the 2004 Pension Reform Act. We provide results for both East and West Germany.

Diskretionäre rentenpolitische Maßnahmen und die Entwicklung des Rentenwerts in Deutschland von 2003–2008