Implementation of the reform of invalidity pensions has started

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In order to increase the labour market participation of elderly people and to raise their actual retirement age, the so-called “temporary” Invalidity Pensions have been replaced by a “Rehabilitation Benefit” (Rehabilitationsgeld) and a “Retraining Benefit” (Umschulungsgeld) as of 1 January 2014 (in a first step for people aged below 50 years). This reform pursues the following goals: a) to reduce the flow into “permanent” Invalidity Retirement, b) to increase the actual retirement age, and c) to raise active labour market participation. The first results are mixed, with challenges especially evident regarding retraining.

Author: Marcel Fink