German State Pension
This topic contains the parameters that tell ProVal what salary and service to use for purposes of calculating the German State Pension.
If Valuation salary is selected, then the Salary Definition included as part of the Census Specifications will be used to determine salary data for the SVR. You may select an Alternative salary definition by clicking the button, to access the Salary Definition Library dialog box, through which you may edit an existing Salary Definition or create a new one. For details, see Salary Definitions.
Next, select the appropriate method that the member’s Earnings Points are determined by. If the Default Entry Age (based on the ratio of Salary to Average Income) is selected, then the entry age is determined by the ratio of Salary to interim Average Income at the valuation date, as follows:
Ratio | Default Entry Age |
At least 0, but less than 0.4 | 18 |
At least 0.4, but less than 0.7 | 19 |
At least 0.7, but less than 1.1 | 20 |
At least 1.1, but less than 1.3 | 21 |
At least 1.3, but less than 1.5 | 22 |
At least 1.5, but less than 1.7 | 23 |
At least 1.7 | 24 |
In this case, earnings points will accrue from the Default Entry Age, though for 5 years from entry the net benefit will be deemed to be 0. Alternatively, you can select a database Field that refers to either current service or a service start date. Select the desired field from among the numeric and date fields unhidden in the current Project. Alternatively, if you need fractional service accruals (e.g., hours-related service) or rounding (e.g., completed years), select from the library of Service Definitions. The button accesses the library to create and modify Service Definitions. Note that if a field or Service Definition is used, in no case will earnings points be treated more generously than they would have been with the Default Entry Age selection. For more information, consult the Technical Reference article entitled State Pension calculations.