It is possible to work until 70 if it is exceptionally justified. Interjections aside, it wold make a big difference in my choice to know that I would have access to that capital at 55 and not at 65. The reuse policy of European Commission documents is implemented based on Commission Decision 2011/833/EU of 12 December 2011 on the reuse of Commission documents (OJ L 330, 14.12.2011, p. 39). One more explanation needed: if we worked in an EU member state before joining the EU Institutions but we did not reach the minimum period requested in some MS (like in Germany is 5 years), but we did not want to transfer IN the EU scheme this previous contribution, it was said by PMO that the pension authority of that MS has to take into account years worked in the EU institutions to reach the minimum period and pay a pension pro-rata. Is he then forced to go for option A (deferred pension), or can he still leave the service and when he becomes 58 request option B (early retirement)? 11, 1 and 12, 1(b) of Annex VIII to Staff Regulations, I have the right to transfer the related pension rights to a pension fund/system of my choice.I am currently 62 years old and, so far, I have not yet requested the transfer of pension rights to a pension fund/system of my country of origin.I would like, if I may, to ask two questions: I. Alef, I cannot provide a definitive answer, but from cases similar to yours Ive gathered that you are not counted as a contractual staff member of any EU institution. You select the fund and its product that appeals to you, and instruct PMO to transfer funds there. PDF Technical compilation guide for pension data in national accounts Lastly, besides the fact that the EU pension and transfer in amounts would be tax free and there would be health insurance until death, is there anything else to consider? In practice, if you are an AD5 in Brussels at the end of your career with a basic salary of 4883, you would be entitled to the following amounts proportionally to the time worked for the EU: The European Commission Correction Coefficient is not applied to pensions (Article 82 of Staff Regulations). However, you can transfer the funds to a 3rd tier (private) pension fund in any EU MS that has an agreement with PMO. I thought it would be but preferred to ask a possibly silly question than to discover later that Id have to work a few extra years! The amount that can be inherited by dependent children varies on the individual situation and the orphans pension can only be precisely calculated by the Paymasters Office. EUR-Lex - 52012DC0037 - EN So it will differ from case to case.2) Regarding early retirement, see section Can I retire early? Unless youre coming from a very wealthy country, most likely, your many years on the national level will transform to fewer years in the EU institutions pension system.Unfortunately, only PMO could advise you on how many years you might get when transferring-in. Im a little confused by a few post though (Im sure its just me) so wonder if you can clarify, if you get a chance. if you meet certain conditions, you can live in the country where you work. The only thing that matters should be whether paternity/maternity is recognized (I assume this case is about paternity). Thanks for your articles very useful! In a letter to the Commission published yesterday, ESMA said pension schemes were "largely operationally ready" and that a mix of solutions were . If someone retires at AD7 after 10 years in an EU institution and gets the minimum pension on account of having only done 10 years and having retired several years before the normal retirement age, are they entitled to any cash sum in addition to the minimum pension amount, given that their contributions will have been higher than those of some other people who would be entitled to the minimum amount? Ive roughly worked out a transfer value of approx 200k capital value. towards the 10 year minimum after which a pension can be claimed? Also please note that even if one was a contract agent before 2014, but became an official in 2014 then the 2014 Staff Regulation rules apply which are a bit more disadvantageous compared to the previous ones. Or its mandatory to choose between them, transfer in or out and have only one pension? " Ensure the financial sustainability of public and private pension schemes, bearing in mind pressures on public finances and the ageing of populations, and in the context of the three-pronged strategy for tackling the budgetary implications of ageing, notably by: supporting longer working lives . I worked (and was allowed to) work remotely from other country and was fired unexpectedly. Working in the EU - your rights | European Union In that case, the retirement pension shall be reduced by an amount calculated by reference to the officials age when he starts to draw his pension. I dont want to be forced to buy an annuity-type product for a payout in 20-odd years as I think this would produce a much lower return and Im happy to take the risk with equities. Are you then eligible for a EU pension? Person A person and person B work for 10 years each. Lenght of service. The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021). Sorry but there is a mistake in the percentage reached after 30 and 40 years of service. in your workplace abroad, you also enjoy the same rights as . Lastly, form E207 contains a statement of the years of working abroad in the country examining your pension application. I just want to clarify something that is not clear in the wording of that article: what happens when the official leaves the service before reaching pensionable age and before he is 58 years of age? Additionally, what means transfer in the 2nd column of the coefficient table? For those who became officials before 2014 the previous Staff Regulations apply with more advantageous terms. also for people working as referendaires or parliamentary assistants depending highly on their judge/MEPs mandate, do they get unemployment benefits after the end of their bosss mandate if they did not want to leave themselves? So a really tough choice for those who want to retire earlier than 65 and enjoy life (like I would do if I could). To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. The duration is for 5 years but I would hope it will be renewed. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. However, in the mean time, I was wondering if you could share your views on my scenario below- I have worked in the EU as follows: Sep 2001- Dec 2006 in the United Kingdom am qualified for a UK pension as I am still contributing each year for the shortfall and will continue to do so until 2037 (when I turn 67) at which point I will be entitled to a full UK pension April 2007 to date (roughly 12 years) in Belgium paying full BE taxes. 40 of the Staff regulations. I am a bit confused on how the EC pension and the national pension work together. Product requirements Standards Standards in Europe Identifying product requirements Conformity assessment Technical documentation and EU declaration of conformity Ecodesign requirements Declaration of mutual recognition Labels and markings CE marking WEEE label Footwear Label Textile Label -mark EU Ecolabel Chemicals Case 1: You apply for the minimum pension at the age of 66Case 2: You apply for the minimum pension at the age of 58, Is the minimum pension of 1200 euros reduced in case 2, by 28%. But there is a swathe of technical and legal detail to sort out and universities need to sign up By anna Kelly A good pension benefit statement follows these principles: The final net salary for an individual Member therefore depends on the tax regime of the Member State in which an MEP is elected. What is the mandatory European Commission pension age? Case 2 unfortunately is correct. I thank you for your personal effort and time invested. Before you make a decision, you can ask PMO to do a precise calculation based on your real contribution data. At the end of the contract, in 2013, I received a notification from the CJEU by which I was informed that by virtue of art. This is what the form to request the transfer out look like (public source), but youll be provided by PMO with this anyway: https://ec.europa.eu/pmo/decl_tft_out_en.pdf. You can also transfer in national pension rights, but they are not counted in years, but in financial capital. EU officials can retire early from the age of 58, but they take a permanent decrease of their pension for every year of early retirement. As written above, one needs 10 years of service to qualify. Once you start to receive your pension, it is indexed at least once a year, usually, in December. You might then get a retroactive extra payment due to inflation (and there is the theoretical possibility of a deduction from a pension due to deflation). Hey there. However, there is a permanent deduction for each year before age 66. Where can i find the list of the European Commission-approved pension management schemes in all EU member states. The opportunity to secure an EU pension is an underappreciated, but a very significant benefit of working for the EU institutions: European Commission, European Parliament, European Council or any of the 40+ EU agencies and several other EU institutions. Although it is a general answer I am giving here; I am afraid that you are not entitled for any pension right as its entitlements are linked to the person who worked for the Institution. Hi! Pension - Employment and social inclusion indicators you write in your article: The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021). Theres even the option to submit questions and trainers will prepare in-depth replies afterwards. German Pension Update for Employers 2022 | Tax Impact of DC Plans - Asinta Values, coefficients and formulas are published in REGULATION No 31 (EEC), 11 (EAEC), laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Economic Community and the European Atomic Energy Community (OJ 45, 14.6.1962, p. 1385) and its amendments. The second question concerns the EU institution competent to receive the request for transfer of pension rightsAs I said, the notification on the transfer of my pension rights was issued by the institution I worked for, the CJEU. This is the time, especially for staff members in lower grades or such with one short career perspective in the EU system, toward check what will be the impact in the minimum maintenance figure rule on your later pension under the EU scheme; save is the formula in this rule: Pension = (BS AST 1/1) x 4 % x (years of service) Occupational pension funds - Finance You can also write to PMO. Yes. I understand that now the request must be addressed to the Commissions services (PMO).Could you please tell me if there is a specific service within the PMO that deals with receiving transfer requests, which can be consulted on the concrete procedure to follow? This means that An example of data being processed may be a unique identifier stored in a cookie. This practice is hugely problematic for EU officials coming from poorer EU MS, but might not be such a big issue for an Irish national. Funds accumulated in the national scheme are equalized with the amount of contributions in one year in the EU system. 1 Introduction However, PSAs generally minimise their cash positions, instead holding higher yielding investments such as securities in order to . However, you can transfer the funds to a 3rd tier (private) pension fund in any EU MS that has an agreement with PMO. Apologies for only now replying to you! Hi, Max. Could they transfer their national pension rights to the EU scheme? PMO regularly organizes workshops on transfer in of pension rights, please sign up to these workshops, they are very useful and give you the possibility to ask questions directly. 10 years = EUR 4883 basic monthly salary X 1.8% X 10 years = EUR 878.94. +33 (0) 1 58 36 43 21 www.esma.europa.eu 2 17 December 2020 . Only persons who had the status: Permanent Officials, Temporary Agents, Contract Agents can accumulate their years of professional experience for retirement purposes. You say that its very interesting from a tax perspective as there is no national tax. 30 years: EUR 8064.86 * 1.8% * 30 years = EUR 4355.02. If I work for the EC until 64, I will reach 40 years of career, which, in the country I lived now, would allow me to retire with a special option for women. It is much harder and more expensive to rejoin the EU pension system if you have withdrawn the funds. While Im afraid I wont be able to respond with the same level of detail as in your question, let me share what I can. Occupational pensions (IORP II) If you run into issues, you must contact PMO and ask for assistance. But I do not have a source for this, I think I heard it in one of PMOs webinars on pensions. Take the case of someone who worked as a referendaire for 6/7 years at a AD10/11 salary and after they leave the Court they find a AD7/8 job with each the cross the ten year limit. Cold you please expand on that? Yes, pensions of former EU officials are regularly adjusted to inflation the same way as salaries of Administrators, Assistants and Contract Agents. While all of the information below is from public sources, it is often hard to access and understand due to legalese and the the sheer size of the documents. End result = minimum pension, EUR 3418.10 (due to 70% cap). The EU pension can be received in parallel to other pension-like entitlements, no problem here. Currently I make a bit more in gross per month than the step 1 for AD7 and was trying to compare. Consider to also attend one of the PMO seminars about pension rights offered to staff of EU institutions. The Dutch pension system is generally looked upon with admiration. You will find contacts of the relevant unit here: https://ec.europa.eu/pmo/, Thank you so much for the effort in collecting all this info in one article! What is better, leave the funds in the EC and what this would mean in terms or claiming it later (in 10-20 years), in terms of amount and choices? This is a hobby so Im at times not able to respond to comments in a timely enough fashion for you and my other readers. Pan-European Personal Pension Product (PEPP) - European Insurance and Report on the Central Clearing Solutions for Pension Scheme Arrangements (No. Do sign up for one of these through your institution to get answers to the above and similar questions. Is this right? Would you know though if the pension, once in receipt, is adjusted in line with an inflation index? The idea of the law is that social security contributions that the employer . Is this how we should understand this ? Meaning, are the contributions increased or decreased in comparison to EU pension years? Learn how your comment data is processed. Sorry, CCP is the french acronym for Leave on personal grounds art. We are getting a divorce and as a spouse I need information about my pension rights and also my JSIS coverage. The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has sent a letter to the European Commission (EC) providing its views on the clearing obligation for Pension Scheme Arrangements (PSA) and recommending the end of the current exemption from the clearing obligation with a one year implementation period. According to Article 82 of the Staff Regulations, No correction coefficient shall be applicable to pensions. Hence, it does not matter where you reside when you retire, you will receive the full pension. If you cannot find this yourself, please call them or write a message (youll have to log into an EU system; I couldnt find a public email): https://ec.europa.eu/pmo/guide/jsis-request-access.html. I have read that there is a minimum pension for former EU officials. End result = either, EUR 3418.10 (due to 70% cap). If you enter service late in life and with a fair size of accumulated pension in a national scheme, can you transfer this in to the EU scheme and use that to take you over the 10y requirement? While it is not encouraged by the EU, some staff continue to pay national pension contributions during their period of EU employment to also get national pension entitlement. Did you receive an answer to your question about reaching the pension age before accumulating 10 years of service? I assume it might be similar to the European Commission, but there might be some differences considering the independent status of the institution.Regarding the first question, PMO in one of their webinars said that pension is calculated proportionally to your average income. Thank you for this comprehensive explanation. When Ill find out, Ill update the article.). In the case of starting working at 58). That brings in total to either 25ish% for lower salaries and (18+45) over 60% tax for higher salaries. I was an administrator (AD). In several of the comments above I read however that I could receive the full amount in cash upon retiring not working for the commission? Hello Ben,you are very clear.I have only one doubt and I hope you can clear it up for me: in a few days I will go to work in Brussels (moving from Spain). Usually this is managed by HR or an entity in charge of training.In worst case scenario Im certain you have colleagues among regular staff that can sign up and let you listen in. The phrase, An official aged less than 63 years () shall be entitled on leaving the service () means that I have to transfer the pension rights acquired during the period I worked at the CJEU, until reaching the age of 63, or I have this right even after reaching the age concerned? 20 years: EUR 8064.86 * 1.8% * 20 years = EUR 2903.34. What are the key features of PEPP? I am specifically looking for the pension management schemes in Spain. Pension Scheme Arrangements (PSAs) in many Member States are active participants in the OTC derivatives markets. 1. European Commission, the 2021 Pension Adequacy Report1 and the 2021 Long-term Care Report2. This means that if you see that theres a larger benefit of transferring out to the Belgian pension system, you will be able to do that. I see there is a Social security tax (around 12%) , solidarity levy (6%) and EU income tax 8-45%. I believe some of these questions have been asked above but cant quite differentiate between the answers. Would they be recognised and transferred into years? My main question is regarding whether I can transfer these into the EU system when I start? If important, please write to PMO to clarify.3) Private pension fund fees you allowed to transfer out to any EU Member State fund. Thanks again for you excellent site and for the advice you provide. This will answer your questions in detail. After reaching 70 a person is retired automatically and there is no possibility to remain in employment of EU institutions. If you want to transfer into eu pension system, any accumulated amount coming from a previous contribution to a private pension fund.Is it possible ? Some institutions strongly encourage the transfer out of the accumulated EU pension capital claiming that it might be very hard to do it at a later date. Do I have any rights? The EC does not have favorable conditions to women. Thanks a lot for your help. If the contributions are sufficiently high, you could still get your 23 years, but it might also happen that you are credited with less than 23 years. Such a person would have accumulated pension rights in a national scheme (having worked in their native country before taking up a job for the EU). When you write full pension, do you mean 70% of your last basic salary, or the pension corresponding to (number of years worked) X 1.8%?I hope you will find the time to respond but, regardless, thanks a lot for all the info provided . I was forced to transfer out my pension. Dear Tobias,Unfortunate to read what you are going through. You can work for different EU institutions at different times in your life. Here, again, information from the PMO might be very useful. And, of course, dont forget about your pension capital once your retirement age comes and you have not accumulated the necessary 10 years to qualify for an EU pension. Does the above provision mean that even if I am entitled to an EU pension ( min 10 yrs of service), I have to wait to request my retirement until the age of 66? If I worked for 1 year in EU CSDP mission as a seconded expert.Is that experience will also be included in the 10 years service? 30 y x 1,8% is 54 and 40 x 1,8 makes 72. After an EU official becomes entitled to an EU pension, the person and his/her spouse and any dependents also become entitled to the JSIS the European Commission healthcare insurance scheme. I dont work for the European commission, never have, probably never will. What about the pension? If so, you can evaluate whether you are able to find a privately managed pension fund from the ones approved by PMO in any EU MS, and that has a higher growth rate than the flat rate you get in the EU pension system. Your example above suggests that the option is between a minimum pension of 10 * 0.04 * 3000.59 = 1200.24 or a standard pension of years worked * 1.8 * final salary. I would be much obliged if you could advise whether former contract employees of European Union Missions in Kosovo, Bosnia or Somalia are entitled to pensions where they were in continuous employment for years in some cases over 8 years. EUR-Lex - 32015R1515 - EN - EUR-Lex That might be best placed to provide legal advice to you and also have relevant negotiation and litigation experience. European Commission since 2006 and future pension adequacy since 2012. With the malus for Early leaving half of this transfer is lost and I m penalised despite I Will have worked the number of years requested. If you cant find one, you can always try to approach the labor inspectorate, labor board or an institution of a similar name in the country where your employer was incorporated to receive a consultation about your rights and possibly even further assistance. My best suggestion would be to get in touch with AIACE, the association of retired EU civil servants and see whether this could be brought before the Court of Justice of the EU. The pan-European Personal Pension Product (PEPP) is a voluntary personal pension scheme that offers EU citizens a new option to save for retirement. The pension schemes are described as they were in force in 2005, including . I hope I have been clear. Would my surviving spouse receive the 60% survivors pension or any kind of allowances straight AFTER DEATH? Ive had it confirmed to me in writing that: We do not pay an indexation according to the national increases. which is the correct statement? All the information that is used for the calculations of this website is of public domain. Elm, in reply to your Oct 25 clarification, both persons are entitled to the same amount of pension. As far as Im aware, the correction coefficient is not applied to pensions. A hypothetical scenario regarding survivors/spouse pension: I reached my 10 years , and plan to leave the EU institution and leave the pension in the EU pot. Dear Ben, thank you for your log and apologies if this has been answered already. Say you have a fund which is equivalent to 7y contributions when you join. Hi Ben. In this case the years accumulated under the national pension scheme and transferred in the EU scheme might increase your pension amount. for the EC as a contract agent. Im not certain if you can join EU-learn courses as an External, but certainly worth a try. Remember also that the EU institutions pension may not be taxed by national authorities, just like your salary. A study of national policies, European Social Policy Network (ESPN), Brussels: European Commission. If you find out more, would be great if you could drop me a line so I can add info to this post. If you have qualified, you can receive a pension from another source in parallel to the EU pension. This German pension update for employers in 2022 involves the Law to Strengthen Occupational Pensions (BRSG) which came into effect on January 1, 2018. I have personally chosen to stay with the EU pension system as a) its a relatively safe bet, b) capital still grows more or less in line with inflation, c) there are other benefits at pension age such as the survivors pension for ones spouse and entitlement to JSIS. He shall, however, be entitled to such pension, irrespective of length of service, if he is over pensionable age, if it has not been possible to reinstate him during a period of non-active status or in the event of retirement in the interests of the service. I am 49 and I have already cumulated 25 working years. Applying for pensions If you've worked in several EU countries, you may have accumulated pension rights are each out them. In your case you only need 4 more years, so it might be reasonable to keep the funds in.
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