Just a few months after the federal elections in Germany, the so called pension package entered into force. It mainly contains three measures: higher pensions for mothers with children born before 1992 ("mother pension"), a reduced retirement age for persons who contributed to the pension system for at least 45 years ("pension with 63") and boost pensions of people who cannot work due to disability ("disability pensions augmentation"). In this paper, we derive the effects of these measures in a computable general equilibrium model on the contribution and replacement rates, as well as on employment, the capital stock and GDP. Furthermore, we analyse the welfare effects of these three measures. Our results indicate that the reforms induce a higher contribution rate, a lower replacement rate, as well as negative, but small employment, capital and GDP effects. Moreover, the strongest beneficiaries will be already retired persons, people between 50 and 65 years, who contributed to the pension system for at least 45 years, and people who will receive a disability pension in the future.
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