Reforming the German Civil Servant Pension Plan

Raimond Maurer, Olivia S. Mitchell and Ralph Rogalla

in The Future of Public Employee Retirement Systems

Published in print August 2009 | ISBN: 9780199573349
Published online February 2010 | e-ISBN: 9780191721946 | DOI:
Reforming the German Civil Servant Pension Plan

More Like This

Show all results sharing this subject:

  • Public Management and Administration


Show Summary Details


This chapter analyzes the risks and rewards of moving from an unfunded defined benefit pension system to a funded plan for civil servants in Germany, allowing for alternative portfolio mixes using a Monte Carlo framework and a Conditional Value at Risk metric. The authors identify an investment strategy for plan assets that will minimize worst-case pension costs; this turns out to be 22 percent in equities, 47 percent in bonds, and 31 percent in real estate. The authors show that moving toward a funded pension system for German civil servants can be beneficial to both taxpayers and civil servants.

Keywords: public pension asset allocation; asset–liability modeling; civil servant pensions; conditional value-at-risk; public pension contributions; Deterministic Actuarial Valuation; discount rates; public plan funding ratio; Germany; Monte Carlo methods; Pension Benefit Obligation; Stochastic Asset Model; Vector Autoregressive Model

Chapter.  11443 words.  Illustrated.

Subjects: Public Management and Administration

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.