ABSTRACT

More than a century ago, in 1889, the German statutory pension scheme started as an old-age and invalidity pension scheme for blue-collar workers. Many of the rules have changed since then and the term 'invalidity' itself almost disappeared. But some of the characteristic features have remained valid, in particular the close connection with gainful employment. Now as ever, disability (and old-age) pensions aim at replacing the loss of earned income. Since the 1957 reform, an even closer relationship has existed between pensions and insured earnings during the whole working life.