Sweden Finland Austria

41
Table 2.8. Continued.
D
NL
GB
CAN
Basic Public Scheme
Minimum age, start
-
-
-
18
Maximum age, start
59
64
64/59
64
2
Continue as
old-age pension
Yes
No
No
No
3)
Eligible groups
Employees,
Employees
Employees,
Employees,
Some self-empl.
Self-employed
Self-employed
4)
Pension dep. on
work hist. and income
Yes
Yes
No
Yes
Pens. graduated ac-
cord. to loss of w. cap.
No
Yes
No
No
Pens. dependent on
age of 1st time recip.
Yes
Yes
Yes
No
5)
6)
Pens. dependent on
marital status
No
No
No
No
Means testing
No
No
No
No
Additional Public Scheme
Existence
None
None
None
None
Eligible groups
Pension dependent on
work hist. and income
Continue as old-age
pension
1)
Persons who become disabled in the age bracket 57-64 years (55-59 for women) receive an early
retirement pension.
2)
Persons who become disabled in the age bracket 60-64 years start in the retirement scheme for dis-
abled, where the formal retirement age is 60 years.
3)
Only disability pension due to 
Erwerbsunfähigkeit', 
Berufsunfähigkeit' based pension will be increased
as old-age pension.
4)
From 1998 there will also be a scheme (WAZ) covering self employed.
5)
The duration of the benefit at the highest level depends on the age of the first time recipient.
6)
Incapacity Benefit and Severe Disablement Allowance both have age additions, highest for young
people.

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42
Comments on table 2.8
The age range between the minimum and maximum age is for eligibility for disability
pension, i.e. the range where it is possible to start as a recipient of disability pension. In
two of the countries, Austria and Germany, the max. age is lower than the formal old-age
pension age. Here there are early retirement possibilities for disabled covering the ages up
to the formal retirement age.
In some of the countries basic disability pension continues as old-age pension. This is the
case in Finland, Austria and Germany (Erwerbsunfähigkeit). The early retirement pensions
for disabled in Austria and Germany also continue as old-age pension.
Only the three Scandinavian countries have residence based disability pension schemes, in
all the other countries a former working or contribution record is required. Without this
there will be no pensions, social assistance will be the alternative (Great Britain has a non
contribution alternative Severe Disablement Allowance, which, however, may be 
topped
up' with Income Support). For old-age pension, cf. the following section, the Netherlands
and Canada also have residence based schemes, but not for disability pensions.
In all the countries where eligibility depends on former work and income the level of the
pension also depends on these parameters, except in GB, where the pension is flat rate.
In Denmark, Sweden and the Netherlands the pension is graduated according to loss of
working capability, in the other countries a 
full' pension or no pension at all is received.
The pension may vary according to the age of the first time recipient. In Denmark there are
age groups where it is not possible to receive (for the first time) certain of the pension
levels, e.g. the highest level cannot be received for the first time in the age bracket 60-66
years. In other countries, e.g. Austria and Germany, the accrual rate for 
anticipated' years
is (after a threshold age) smaller than for 
real' years. In general the higher the age, the
larger the pension. In Great Britain it is the other way round. The age supplement of the
pension is highest for younger people. In the Netherlands it is more the duration of the
pension at the highest level which depends on the age, the higher this is the longer the
duration is.
Only the Scandinavian countries differentiate the basic pension according to being single
or married, and only the Scandinavian countries means test the basic pension, in Sweden
and Finland only when it is 
integrated' with the public occupational pension, in Denmark
it is against a wider range of other income sources.
Sweden and Finland have, as already mentioned, additional occupational pension schemes
which for disability pensioners apply 
anticipated' time. The accrual rate for 
anticipated'

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43
time is lower than for 
real' time in the Finnish scheme (but not in the Swedish), so Finnish
disability pension will often also depend on the age of the first time recipient.
It should be mentioned, that disability pension schemes are often complex and the eligibil-
ity criteria vary considerably, they are mainly based upon medical assessments but some
times also on social and economic conditions. All this is not reflected in table 2.8.
Level of compensation
Only permanent benefits for 100 per cent disability are included in the calculations which
have been made for the single APW in two situations, one where there is a former working
record and all access conditions are met and another where there is no former working
record at all. The two cases are recorded in table 2.9. It should be emphasized that no
supplementary benefits (e.g. for care or help to get around) are included, and that the
calculations cover a 
full' disability pension.
Table 2.9.
Net replacement rates in case of disability in 8 countries, 1997.
DK
S
FIN
A
D
NL
GB
CAN
With former working record
Net replacement rate
75
63
63
68
62
73
29
41
Without former working record
Net replacement rate
75
45
32
36
23
47
21
25
1)
1)
1)
1)
1)
These cases are based upon social assistance because the persons have no pension rights.
The supplements for care and other help vary considerably from a relatively modest level
in Denmark to a relatively generous level in Great Britain. If the maximum of the Disabil-
ity Living Allowance is included in the calculations for Great Britain, the net replacement
rate would more than double. The British case without former working record could also
be 
topped up' with Income Support. The Danish disability pension scheme is, as the only
one, completely independent of former work and income. The net replacement rates are
quite similar for 6 of the countries (former work record), only Great Britain and Canada are
at a substantially lower level.
It should be remembered that the duration of the benefit period in the Netherlands varies
with the age of the 1st time recipient. For a 35 year old person it is ½ year, for a 40 year
old it is 1 year. For a 50 year old it is 2 years and for a 59 year and older it is until old-age
pension. When the benefit period expires the benefit is calculated on a reduced basis.

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44
Compared to the cases in table 2.7 for industrial injuries, it is evident that the compensa-
tion recorded in table 2.9 is lower.
Table 2.10 contains the cases where the usually part time working spouse becomes dis-
abled while her husband continues to work at APW income level.
Table 2.10.
Effects on the couple’s disposable income from permanent disability for the part time
working partner in the APW-couple in 8 countries, 1997.
DK
S
FIN
A
D
NL
GB
CAN
Compensation percentage
77
63
67
53
38
70
43
42
Change in disposable income, %
+1.0
-8.0
-9.3
-13.4
-10.2
-10.2
-16.8
-17.0
The negative impact on the family disposable is approximately 10 per cent in most coun-
tries, more in Austria, Great Britain and Canada. Only Denmark has a small gain, caused
by the relatively high flat rate benefit in relation to the ½ APW income. Again, it should
be remembered that the duration of the benefit at this level in the Netherlands in most
cases is only temporary.