This paper examines the analytical properties of the German ‘points‐based’ pension system. These properties are compared with those of a canonical Notional Defined Contribution (NDC) pension scheme. The paper identifies the circumstances under which the German ‘points‐based’ system would mimic a Swedish‐type NDC scheme and verifies to what extent the German ‘points‐based’ scheme ensures uniformity of individual rates of return for some hypothetical careers. Finally, the paper proposes a set of new possible adjustment rules able to increase similarity between the German point system and the NDC scheme.