Since the 1957 pension reform, the average disposable pension in the western part of the country after 45 insured years (basic pension) has risen to about 70 percent of the average worker’s net income; on 1 July 1 997 it was thus approximately DM 1,975 per month. Since 1 July 1990 average pensions in the new states after 45 insured years have likewise amounted to 70 percent of the average worker’s net income there. Pensions in the new states are increasing on an annual basis in line with the wages of the working population there and on 1 July 1997 averaged about DM 1,683. Since 1 January 1992, uniform pensions legislation has been in effect for the whole of Germany.

Paying pensions is not the only purpose of the pension insurance scheme. It also helps to maintain a person’s capacity for work or to improve or restore that capacity (rehabilitation). Thus it covers the cost of curative treatment at a spa and provides support for people who must undergo vocational retraining for health reasons. Company pensions are a valuable supplement to the statutory scheme. Many companies provide them on a voluntary basis.