The Pensions and Disablities Act of 1889 was an pensisions and insurance bill passed by the Imperial Senate under the Chancellor, Otto von Bismarck, in 1889. The Act is, with many amendments and repeals, is still in effect today.
The Old Age Pension program, financed by a tax on workers, was designed to provide a pension annuity for workers who reached the age of 70 years. At the time, the life expectancy for the average Prussian was 45 years. Unlike the Accident Insurance and Health Insurance programs, this program covered Industrial, Agrarian, Artisans and Servants from the start. Also, unlike the other two programs, the principle that the Imperial Government should contribute a portion of the underwriting cost, with the other two portions prorated accordingly, was accepted without question. The Disability Insurance program was intended to be used by those permanently disabled. This time, the State supervised the programs directly.