Hi and thanks for reading the article! Pensions schemes and projection models in EU-25 Member States Thanks Ben, do you know the rate at which EU pensions are taxed? or should I wait 66 years or the EC pension will be reduced (as explain in the article)?Thank you. The figures should be 90-95% correct, giving you a possibility to compare your income in the Commission vs a private sector employer. It is possible to work until 70 if it is exceptionally justified. This actually merits a separate, highly visible section in the article as an excellent pre-retirement move for a lot of experienced professionals in EU countries where pensions are low. All of this makes the EU pension scheme attractive to me. See Rajan and Zingales, 2003, for a discussion of the development of the financial system and social insurance in the 20th century . This totally is a question to your pension fund. Would my surviving spouse receive the 60% survivors pension or any kind of allowances straight AFTER DEATH? PDF REPORT FROM THE COMMISSION TO THE EUROPEAN - European Parliament What are the consequences?. Hi! At least the above is what I was told by HR Thanks and regards, Anna, Hi Kepa,If you accrued 44% pension rights of your last salary and you retire at 58 you would get X (last basic salary) times 44% = Y (times 28%) = Z example 8000 x 0.44 = 3520 x (1- 0.28) = 2534. There is always the possibility that you return to an EU institution and get the missing 2.5 years to get an EU pension and JSIS coverage for your retirement.2) Getting access to your pension capital as far as I know, you can transfer it to a 3rd tier private pension fund any day. I see there is a Social security tax (around 12%) , solidarity levy (6%) and EU income tax 8-45%. End result = either, EUR 3418.10 (due to 70% cap). I left the EC recently, and while they push to channel your funds out, they can not legally require it. I am sure there are many spouses that have the same problem. 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. I suggest you stil try to attend one of the seminars organized by PMO about transferring out of pension rights. For most people the best strategy is to leave your pension capital with the European Commission Paymasters office as it accrues a 2.9% per annum in interest. Yes, you can retire as early as age 58, however, you pension will be decreased by 3.5% a year or 28% from what you would be entitled at 66 and will remain so until your death. Thank you for all these information that are very useful. Learn how your comment data is processed. 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 . While it, I also would advise to disclose at least the main facts about your condition. 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. When Ill find out, Ill update the article.The PMO regularly organized only webinars about pension rights. II. If BE or LU funds charge exorbirtant fees, consider FR or other country. To find out the size of your pension and related rules, it would be best to ask your institutions HR or directly to PMO! 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. As an EU Commission official I have my pension rights secured after 10 years and calulated as explained above.Now, according to the treaties the salaries of EU officials are not subject to national taxes. For the 40 annual fee (differs by location of national units) you can get a number of benefits: EU officials have their own pension scheme, managed by the European Commission. Until you decide to (not) take the EU pension, you are free to both transfer in and transfer out. Dear Ben,All the information you are giving is very useful and interesting. In case you are considering taking an offer in another EU member state, always remember about the impact of the Correction Coefficient. The JSIS coverage (full/complementary) will cease to exist in the end too.In such case you will have to check / enroll with the (un)employment/social wealthfare office of the country you reside in.If you believe you have a particular case or for a more accurate info, try the contact details you find here in the link below:PMO Rights, salaries and allowances:https://ec.europa.eu/pmo/guide/rights-and-allowances.htmlJSIS Welcome Desk/Hotline:https://ec.europa.eu/pmo/guide/jsis-request-of-information.html, Erik, thanks so much for helping to answer to questions! Dear Ben, my wife has been working for the Commission for the last 17 years as a temporary agent. Its unlikely that Ill ever work in in an EU institution again to make up the ten years so Im considering a transfer out to a private pension scheme in an EU member state when I resign. What are the key features of PEPP? Reasons to transfer out your accumulated EU pension capital:* You do not plan to ever again work for EU institutions* You are certain that you will be able to invest your EU pension capital in an investment vehicle that returns substantially more than 2.9% per annum* You are worried that you might die before retirement age (chronic disease, family health history, dangerous hobby, etc.). Hello, my pensionable age is 62 and 8 months but I will reach 70% pension rights at the age of 61 and 6 months. I was forced to transfer out my pension. N.B. Roberto, thank you for another great question which I again will have to clarify with PMO when the opportunity presents itself. Access to a helpdesk (consultations on key retiree issues). Your email address will not be published. Hi Ben,I left an EU agency with a 44% contribution at the time. Minimum pension of EUR 3000.59 * 4% * 40 years = EUR 4800.94. Sorry for the delayed reply, I unfortunatelly missed your comment/question. Ive just got an answer to this from the Pensions Department in the EU institution I work in. Im not sure what you mean with the question about transfer. For those who became officials before 2014 the previous Staff Regulations apply with more advantageous terms. So it will differ from case to case.2) Regarding early retirement, see section Can I retire early? If you divorce, you are most likely using the rigths to the survivors pension and also JSIS coverage when you retired as the spouse of a retired EU official.If you want to have official information, you must write a letter to PMO, the Paymasters Office of the European Commission. Hi Ben,I am nearing retirement and will retire to the UK.Many years ago I worked 9 years ( duuurgh!!! ) However, you can transfer the funds to a 3rd tier (private) pension fund in any EU MS that has an agreement with PMO. The risk of underinsurance in the Finnish statutory pension scheme for However, PSAs generally minimise their cash positions, instead holding higher yielding investments such as securities in order to . Thank You! I guess you could do the same in BE and UK, to see which scenario makes sense. If I move to a European Institution (one of the agencies) now at age 53 and IF I manage to stay over the 10 years mark .can I bring over the 23 years already accrued for a State (PUBLIC) pension within one other Member State (Ireland), in order to get a better EU pension ?If the answer is yes, who would be the Body responsible to address this issue to do the pertinent calculations when the right time comes? Occupational pension funds benefit from the principles of free movement of capital and free provision of services in the EU. I have worked for 7,5 years for the EU, I have received indeed the advice to transfer the funds to a third party pension fund; PMO says I will NEVER receive the pension capital accumulated and that I am obliged sooner or later to place it in a fund to receive monthly payments. An example of data being processed may be a unique identifier stored in a cookie. Assuming that all of the guarantees in the CEOS are satisfied, what kind of product does the Commission allow me to make the transfer to? If you run into issues, you must contact PMO and ask for assistance. Coming from a relatively new MS, my funds accumulated in 4 years in the national scheme got me a 6 months and 10 days in the EU pension system.Thank you for the effort in publishing informations about the EU pension scheme, I really appreciate it.Best,Anja. As usual, if there is an unanswered question or you have spotted a mistake, please write a comments and me and the EUE community will do our best to help and update the article. All about old-age and survivors' pensions - Die Europische Kommission He shall, however, be entitled to such pension irrespective of length of service, if he is over pensionable age,I will have 11 years of service at the age of 61. Sorry, this is too specific, you would have to ask PMO or the national institution. Where can i find the list of the European Commission-approved pension management schemes in all EU member states. Or alternatively, if the 2.9% compounding mechanism applies to the pension also when a person is already retired? I am external so will try to see how to join- thanks. A question regarding the 10 years necessary to qualify for a EU pension does CCP count to that effect? You get the 100% Brussels amount irrespective of where you choose to retire. Its best to do it through the form on Intranet as then you are identified and find out your precise accumulated capital amount, etc. I get that once pension is taken early, say at 58, it stays at the level and there is no jump at the normal retirement age of 66. PDF EUROPEAN COMMISSION - finance.ec.europa.eu Do I have any rights? So from a pure revenue perspective, even though it is advertised as being tax free or very low taxes while working at EU, globally its not that interesting in fact. Thank you for pointing this out! 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. 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. This broker has the monopoly in Belgium and Luxemburg, which is not EU-like. 1)I am currently 46, married, with 1 child of 2 years, so I currently receive the household allowance and the dependent child allowance. This means that What would happen in this example?You work for 10 years in the EU.You then leave for several years. The only thing that matters should be whether paternity/maternity is recognized (I assume this case is about paternity). The surviving spouse of a former EU official is entitled to 60% of the pension paid to the official. Please also read the comment of Anja, 2 November 2021 at 15:11, below. European Commission launches international pension scheme for Minimum pension of EUR 3000.59 * 4% * 30 years = EUR 3600.70. Lastly, form E207 contains a statement of the years of working abroad in the country examining your pension application. My question is, will this be taxable in Belgium I dont see why because the money wasnt generated in Belgium but I know nothing of these matters. End result = standard pension, EUR 2903.34. 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. Household allowance seizes to be paid. 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. You will continue to receive dependend child allowance if you children are in your care. 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? Or only after the actual due pensionable age of 2048? Pan-European personal pension products (PEPPs) are regulated by the Regulation 2019/1238, also known as the PEPP Regulation. Thanks a lot. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. I hope that this article helps you to make decision whether to take the European Commissions offer. What is the mandatory European Commission pension age? As far as Im aware, you cannot reach the 10y participation requirement by importing your national pension scheme participation time. 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? THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, . you write in your article: The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021). . 2) If I leave the EC after a total of 10 years of service, and I dont transfer out my EC pension right, will this affect my national pension scheme? The consent submitted will only be used for data processing originating from this website. Approximately it is around 40-45% in Belgium between gross and net salary. 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%. Also, I have a significant number of state pension years built up too. 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? Forum, 2008; European Commission, 2012; Council of Economic Advisers, 2016). However, each year of early retirement permanently decreases the pension you are entitled to.Another option is to transfer out your EU pension at 64 to the national pension scheme (I assume to Italy). Yes, this is possible. ESMA recommends final one-year clearing exemption for pension funds So in case it would be possible to receive the funds as a whole, it would solve this particular issue. Dear Nic, let me try to answer what I can.1) Transfer out of accumulated pension capital Ive heard of particularly colleagues in the European Commission to be receiving such threat letters. 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. This pension scheme serves the former statutory staff of the European Commission, European Parliament, European Council, the 40+ EU agencies and all other EU institutions. You select the fund and its product that appeals to you, and instruct PMO to transfer funds there. The 10 years have to be collected in the EU pension scheme. 4 . Thank you for the information that you post in this web page, and for answering our questions. It is always possible to withdraw the funds, unless you suddenly die in which case the funds disappear. The accrual rate is the rate at which a contributor builds up pension benefits in a defined benefit scheme. Hi Ben. https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A01962R0031-20210101&qid=1621964486547. If you have questions about JSIS, the European Commission health insurance scheme, including coverage of funeral expenses, you can find the relevant Paymasters Office contacts here. Thats a great question, to which I at the moment dont know the answer about. I think it was one of the EUs special missions to third countries, but am not completely sure about this. Hi, Max. 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. Second objective indicators - adequate pensions. As written above, one needs 10 years of service to qualify. AIACE is even an official member of a number of working groups that affected the interests of former EU administrative agents and contract agents. Anyone who works for the European Commission, European Parliament, an EU agency or another EU institution, is entitled to an EU pension after 10 years of service. Your article is greatly helpful and informative. 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. 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. 1. It reimburses between 80-85% of most healthcare costs. Thank you for your kind reply. Staff of CCP missions usually are not statutory staff of EU institutions, and hense this work experience doesn not count towards 10 minimum years to qualify for an EU pension. The EU provides a framework for authorities to manage insurance failures effectively. Could you please clarify what does CCP mean? What is your advise, what should me (and thousands of others) do? Additionally, after you pass away, your surviving spouse will continue to receive a survivors pension until her/his death that is a significant part of the pension you were entitled to. Hi, as a fired contractor of external company (but work for EC) do I have some rights to these benefits? Hi BenThank you very much for the very interesting read.This fall I reached 10 years of working for an EU institution.In the meantime I asked for an estimate for a transfer of my pension right from my home country, the 4 years I accumulated there translate in 6 months in the EU system.Long story short now: I am planning to do something completely different in my life, might get into private business in my home town in a couple of years.If Im to leave my so far accumulated funds in the EU pension system, I will be entitled to the pension when I am 58 or 66? Thank you for this comprehensive explanation. Before you make a decision, you can ask PMO to do a precise calculation based on your real contribution data. That is also how I understand the rules. Once you retire, your spouse and dependents also get JSIS coverage. January 8, 2022. Insurance and pension funds - Language selection | Finance 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. So it would be somewhere between AD10 and AD7.As to the second question, please ask your institutions HR. End result = minimum pension, EUR 2400.47. Take care. Is there any extra amount added to my monthly pension then? 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. It cannot be less then 40% of the basic salary for a temporary agent AST 1 (currently EUR 1200.24).I have also read that early retirement pension amount is reduced 3,5% for every year before mandatory pension age of 66.Is this reduction of 3.5% aplicable to the minum of 1200.2 as well? EUROPEAN COMMISSION Brussels, 14.4.2023 COM(2023) 188 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the actuarial balance of the Pension Scheme for EU Officials (PSEO) and the budgetary implications of Annex XII to the Staff Regulations . I believe some of these questions have been asked above but cant quite differentiate between the answers. Since the financial crisis pension funds[ 5] have represented a dynamically growing financial sector in the euro area. If your kids are underage or in university until, Its so nice to get messages like this! Apologies, but I know very little about EU missions. In your case you only need 4 more years, so it might be reasonable to keep the funds in. Or its mandatory to choose between them, transfer in or out and have only one pension? I do not know whether it also does not get proportionally decreased; 2) It might make sense to transfer out all of your accumulated pension capital and invest it, for example, in real estate to rent it out. Dear Kepa,Your calculation looks about right, however, the best thing would be to write to PMO and find out precisely. This probably makes most sense if you have 10 or less years remaining to qualify for a national pension. Best of luck! The EC does not have favorable conditions to women. 1 REPORT FROM THE COMMISSION TO THE EUROPEAN . Directive 2014/50/EU EN on the acquisition and preservation of supplementary pension rights came into force across the EU on 21st May 2018. Is taxed according to the rules of the country of residence of the retired official?Thank you. That might be best placed to provide legal advice to you and also have relevant negotiation and litigation experience. 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. 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. Then you can either take out the whole amount, or leave it at the fund in exchange for pension payments. You transfer that in and work for 5y before retiring. Pension Rights in the EU: Frequently Asked Questions (Im not sure you would be able to transfer out to the UK, however, that might be an option after Brexit considering the large number of UK nationals that were working for 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. P.S. EXAMPLEIf you are entitled to the minimum European Commission pension of EUR 1200.24 (100%)THENyour surviving spouse will receive up to EUR 720.14 (up to 60% of former officials pension) until her/his end of life. Hi Ben, I have a child with someone who retired from the European commission but he passed away before we could get married, is my child entitled to child support from the European Commission?If so, what would my child get.Thanks. EUR-Lex - 52012DC0037 - EN European Commission since 2006 and future pension adequacy since 2012. As Martin replied, pensions are indexed. This question was already answered below. Sorry, CCP is the french acronym for Leave on personal grounds art. ageing, comparable information about the role of occupational and personal pension schemes across the EU Member States would also be valuable for benchmarking, identification of best . The mandatory pension age is 66, at which you will be able to receive the full amount of pension that you are entitled. Indeed, you cannot be forced to withdraw funds from the EU pension system. There is a full list of accredited pension funds somewhere on the Commission website. Personal pension products - Finance 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). I remember from a training, that the PMO has this information. The funds will only become available to you once you reach the age of 60. The best thing to do, once pension nears, ask for a precise calculation from PMO and the national system. Ive had it confirmed to me in writing that: We do not pay an indexation according to the national increases. I dont work for the European commission, never have, probably never will. Theres even the option to submit questions and trainers will prepare in-depth replies afterwards. The European Commission Pension Scheme is what is known as a defined benefit/final salary scheme. Your pension after the 10 mandatory years of service cannot be less than the minimum pension for EU officials see above. Is it possible to transfer this in and forego my state pension for those years in my hole country i.e from 17 to 38 years of age? Best,Anja. Is there a quota system where my full contribution in the UK and my 12 years in BE are equivalent to certain amounts of EU years? 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? Required fields are marked *. Pensions schemes and projection models in EU-25 Member States (3 MB) This paper reviews the public pension schemes and the pension models used for the projections carried out by the Economic Policy Committee and the European Commission on age-related expenditure in 2005. I know near to nothing about CSDP missions, so its very helpful you could chip in! However, you would not be able to transfer 23 years proportionally. End result = standard pension, EUR 4355.02. I went with a company in Brussels and received something called Deffered Annuity with Transfer of Benefits which will give me an annuity on retirement. Have you clarify that question now? However, there is a permanent deduction for each year before age 66. If I want to get early retirement at the age of 58, will my pension be 44-28% = 16% or 1200 (whichever is the highest)?Thank you.Kepa. You can accumulate your 10 years in EU institutions over an unlimited number of instances of working for EU institutions until the mandatory retirement age of 66. If this is relevant, ask your HR when is the nearest PMO pension rights webinar. It is most commonly expressed as a fraction, such as 1/30th, 1/60th, 1/80th, 1/120th etc., but can sometimes be expressed as a . I warmly suggest that once you start working for your agency, sign up for one of the regular training/info sessions organized by PMO on the EU learn platform (ask your HR about it). All the above institutions recognize AIACE as the representative of their retired staff, Founded June 1969, AIACE has over 12000 members out of a total approximately 23500 retired staff, 15 national branches (20 retirees can form a national branch), AIACE lobbies on behalf of retired EU officials and defends their rights at the European Commission and other EU institutions. Continue with Recommended Cookies. You can also send an email PMO-TFTOUT-ALLDEP-DEMANDES@ec.europa.eu, if you just want to find out info about a general question. The European Commission Green Paper on pensions: Lessons - Springer I will update the article at the closest opportunity. Also, one maybe have accumulated these ten years between his 48th and 58th birthday, and another between his 55th and 65th birthday. The only caveat you pension capital left with the EU Paymasters Office will be completely lost if you happen to die before reaching your pension age. Thank you for the useful information. Bear in mind that the pension amount will not increase as you age, it will stay at the early retirement amount (which really sucks).2) If do not transfer out, of course, you will not get additional rights in the national pension system. 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. 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. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); This site uses Akismet to reduce spam. someone who starts working for an eu institution or agency at 58). In both cases, the amount of years is the same. PDF Technical compilation guide for pension data in national accounts , Tobias, hi! It is much appreciated.I would like to ask you a question that arises from the wording you are using in the text. Lenght of service. Im so happy that pooling information from the readers and benefiting from all of your experiences works more and more frequently with this blog/page to all of our advantage. You have to accumulate your 10 years before you reach either the mandatory pension age (66 years in 2021) or early-retirement age (58 years in 2021).

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