Sweden Finland Austria

8.
Disability pensioner with former working record and income at APW-level. Single
APW
Germany has (1997) two schemes for disability, one due to 
Erwerbsunfähigkeit' and
another due to 
Berufsunfähigkeit'. The 
Erwerbsunfähigkeit' scheme has the highest
benefit (Rentenfaktor) and has been assumed for the case here.
The pension is in principle calculated as an old-age pension, but using 
anticipated'
years from the time of the pension case until the age of 60 years. The years until the
age of 55 years have full weight, those from the age of 55 to 60 have 1/3 weight.
Assuming a case which is parallel to the old-age pension case, cf. case 11, where the
working period is 45 years, from the age of 20 til 65, the disability case will have 35
full' years (from the age of 20 to 55), some of them 
anticipated', and 5 years (from
55 to 60) with a weight of 1/3 (all 
anticipated'), in total 36 2/3 years going into the
pension calculation. Assuming the same personal factor as in the old-age pension
case, 1.0795, cf. case 11, the pension will be 22,350 DEM in 1997. The health and
care insurance will be 7.65 per cent of the pension, i.e. 1,710 DEM. Only the interest
component of the pension is taxed (this is higher the younger the person is) and it is
assumed here, that no tax is paid.
The disposable income of the pensioner is 22,350 - 1,710 = 20,640 DEM.
The net compensation percentage is 20,640 / 33,349 × 100 = 61.9.
The decrease in disposable income for an APW becoming a disability pensioner is
38.1.
9.
Disability pensioner without former working record. ‘Single APW’
The minimum insurance period for pensions in Germany is 5 years (with 3 years of
paid contributions), so without former working period there is no pension.
Disability pensioners without a former work record and without other means will
receive social assistance. The basic rate is 538 DEM (average) per month. There is
a supplement of 20 per cent of the basic rate for persons who are 
Erwerbsunfähig' in
the sense of the disability pension law. The total benefit is 645.60 DEM per month
or 7,747 DEM in 1997. This is also the disposable income.
The 
net compensation percentage' (relative to the APW) is 7,747 / 33,349 × 100 =
23.2.
The 
decrease' in disposable income, relative to that of the APW, is 76.8 per cent for
the disability pensioner.