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10.
Wife disability pensioner. APW couple
It is assumed that the wife in the APW couple becomes a disability pensioner (
Er-
werbsunfähigkeit') while the husband continues to work (APW income level). It is
assumed, that her former income has been precisely ½ of her husband's. On that
assumption she will receive 50 per cent of the disability pension from case 8, i.e.
11,175 DEK. The health and care insurance is 7.65 per cent of the pension or 855
DEM. The taxable part of her pension depends on the age when she became a dis-

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ability pensioner. On the assumption that her age was 35 when she became a disabil-
ity pensioner 47 per cent of the pension is taxable. If she was alone there would be
no taxation but the amount is taxed together with the income of her husband. The
pension is 11,175 DEM and 47 per cent is taxable, i.e. 5,252 DEM. The social
contribution is deductible together with that of her husband.
The gross compensation percentage is 11,175 / 29,169 × 100 = 38.3. The disposable
income of the couple is 48, 127 DEM, when the wife receives disability pension and
the husband continues to work.
The decrease in disposable income compared to the situation with no disability is
53,579 - 48,127 = 5,452 DEM or 10.2 per cent.
11.
Pensioner with maximum period of former occupation. Single APW
Retirement at ’usual’ age, here 65 years
In Germany, there is no pension based upon age alone, neither is there any number
of years giving right to a ’full’ pension (in Sweden e.g. 30 years give that right).
Some assumptions have to be made. It is assumed, that the former occupation (in-
cluding education) has lasted for 45 years, and that the ’personal income factor’ is
107.95 (and has been that for all the years). On these assumptions the pension in
1997 is 27,430 DEM. The German pensioner has to pay for health and care insur-
ance, half premium, i.e. 7.65 per cent of the pension, that is 2.098 DEM.
The pension is only ’partly’ taxed. Retiring at the age of 65 years, 27 per cent of the
pension is taxable, after deduction of health and care insurance payment. In this case
the taxable pension is lower than the minimum pension for which taxes are paid, and
no tax has to be paid.
Disposable income for the pensioner is 27,430 - 2,098 = 25,332 DEM.
The net compensation percentage is 25,332 / 33,349 x 100 = 76.0.
The decrease in disposable income for the APW retiring at the age of 65 years is
24.0 per cent.