Pensions in Germany Pensions in Germany Pensions in Germany are based on a “three pillar system”. The scheme is based on the pay-as-you-go (or redistributive) model. Funds paid in by contributors (employees and employers) are not saved (or invested) but are used to pay current pension obligations. Civil servants in Germany do not pay any contributions themselves but their salaries are correspondingly lower than those in the private sector. Recent changes to the system mean that from 2012 to 2023 the retirement age will go up to 66 by 2023. From 2023 the retirement age will be increased by two months each year,
Pensions in the United States Pensions in the United States Pensions in the United States consist of the Social Security system, as well as various private pension plans offered by employers, insurance companies, and trade unions. Private pension plans are governed by various federal statutes and regulations: labor law regarding the establishment (primarily ERISA), maintenance, and termination of pension plans; tax treatment of pension plans and pension distributions; provisions of securities law relevant to pension plans; pension-related bankruptcy laws; protection against age discrimination and other requirements imposed on pensions. Pension law also incorporates judicial decisions with respect to those federal statutes and regulations. Pension plans