End result = standard pension, EUR 5645.40 (due to 70% cap). And worst of all the pension does not increase to 100% after you reach the age of 65. 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 . Now calculating as AD10 step 1, final basic salary 8064.8670% cap = 5645.40. Pensions for Staff of European Commission and other EU institutions, https://ec.europa.eu/pmo/guide/rights-and-allowances.html, https://ec.europa.eu/pmo/guide/jsis-request-of-information.html, https://ec.europa.eu/pmo/decl_tft_out_en.pdf, https://ec.europa.eu/pmo/guide/jsis-request-access.html, https://euemployment.eu/administrators-ad7-salary/, https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A01962R0031-20210101&qid=1621964486547, What is the European Commission Correction Coefficient, 16 advantages of working for the European Commission, Seconded National Experts (SNEs) salary calculator, Contract Agents Function Group FG IV salary. If you are certain that will never again work for the EU, then it actually makes sense to withdraw the funds and invest in a 3rd tier private pension funds that offers returns larger than capital growth in the EU pension system. Your pension after the 10 mandatory years of service cannot be less than the minimum pension for EU officials see above. The answer is yes. European Commission Pension Scheme | Spectrum Pensions Advice Will try to specify this more clearly in the text. 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. 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. 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. you write in your article: The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021). There are organized regularly. To find out the size of your pension and related rules, it would be best to ask your institutions HR or directly to PMO! 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. 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. Hi and thanks for reading the article! It is also possible to get in touch with Office for the Administration and Payment of Individual Entitlements also know as the Paymasters Office (PMO), contacts here. Or alternatively, if the 2.9% compounding mechanism applies to the pension also when a person is already retired? 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. I am sure there are many spouses that have the same problem. 9.7% is automatically deducted from your salary each month to accumulate the pension capital, and no actions need to be taken by you. Only persons who had the status: Permanent Officials, Temporary Agents, Contract Agents can accumulate their years of professional experience for retirement purposes. 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). https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A01962R0031-20210101&qid=1621964486547. You'll have to apply to the pension authority in the bundesland where you're housing or you last worked. As an example, the minimum EU pension in 2021 was around 1200 euros, but rose to 1311 euros in 2023 as salaries of EU officials also increased. Minimum pension = EUR 1200.24 (calculation unchanged). 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? I now nothing of how the CJEU operates. End result = standard pension, EUR 1451.67. 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. Is this possible somehow? 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. So a really tough choice for those who want to retire earlier than 65 and enjoy life (like I would do if I could). 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). In your case you only need 4 more years, so it might be reasonable to keep the funds in. We and our partners use cookies to Store and/or access information on a device. 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. Are you then eligible for a EU pension? Dear Ben, my wife has been working for the Commission for the last 17 years as a temporary agent. If BE or LU funds charge exorbirtant fees, consider FR or other country. This broker has the monopoly in Belgium and Luxemburg, which is not EU-like. 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. P.S. 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. 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 can withdraw the funds from 58 onwards. Pension scheme arrangements ("PSAs") have been relying on time-limited exemptions from the EMIR clearing obligation since it was first introduced (see previous briefings, the most recent of which is accessible here, with earlier briefings accessible through that).The European Securities and Markets Authority ("ESMA") has now recommended to the European Commission ("EC") a final . If important, please write to PMO to clarify.3) Private pension fund fees you allowed to transfer out to any EU Member State fund. 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. 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. You will also entitled to the education allowance if applicable (covers also university studies at double rate). I guess you could do the same in BE and UK, to see which scenario makes sense. Its a dark one, not planing to die, but i think this point needs a bit more clarity for family members to know what and when they could get in terms of support. in your workplace abroad, you also enjoy the same rights as . Thank you for this comprehensive explanation. 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. I will update the article at the closest opportunity. Hi Ben,I am nearing retirement and will retire to the UK.Many years ago I worked 9 years ( duuurgh!!! ) That brings in total to either 25ish% for lower salaries and (18+45) over 60% tax for higher salaries. 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). 4 . 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. Here, again, information from the PMO might be very useful. It is possible to work until 70 if it is exceptionally justified. 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. I thank you for your personal effort and time invested. II. EUR-Lex - 62014FO0070(01)_SUM - EN - EUR-Lex | European Commission The Dutch state retirement pension is funded as a pay-as-you-go scheme, second-pillar pensions are collectively funded and third-pillar annuities have a fully funded basis too. The EU pension is a defined benefits/final salary scheme that guarantees you an inflation-adjusted monthly income until your death. The retirement age is the same for men and women 66. 30 years: EUR 4883 * 1.8% * 30 years = EUR 2636.82. Minimum pension = EUR 2400.47. Could they transfer their national pension rights to the EU scheme? Hello,Ive accepted a job with EC. Minimum pension = EUR 3600.70. Best,Anja. However, you can transfer the funds to a 3rd tier (private) pension fund in any EU MS that has an agreement with PMO. 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. It scores higher marks for level of participation, level of pension income and sustainability than retirement provisions of most other countries. which is the correct statement? I think that the 10 years of service is not the case for all. According to a European Commission survey, most countries provide some form of public old-age social security for self-employed workers (EU-SPC, 2018). 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. Regarding national pension and whether its payment might be affected by you receiving an EU pension, you would have to check national legislation/consult the relevant state institution. 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). Pensions schemes and projection models in EU-25 Member States The 10 years have to be collected in the EU pension scheme. Thanks a lot for your help. Exactly the same question on my mind, thank you Fran for putting it up. All of this makes the EU pension scheme attractive to me. You can work for different EU institutions at different times in your life. Pension Benefit Statement The IORP II Directive on the activities and supervision of institutions for occupational retirement provision (IORPs) requires IORPs to provide its members with an annual statement - or Pension Benefit Statement. 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? 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. I will shortly be joining an EU agency on a TA contract. EU countries are generally aware of this. 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. So it will differ from case to case.2) Regarding early retirement, see section Can I retire early? 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? Former employees of EU institutions are usually advised to contact the HR department of the last institution they were employed by. However, there is a permanent deduction for each year before age 66. In short, you can transfer-in your pension capital, however, what counts is not the years of contributions, but the amount, which is then equalized to your contributions from the EU salary. ESMA recommends final one-year clearing exemption for pension funds Please also read the comment of Anja, 2 November 2021 at 15:11, below. The best course of action would be to get in touch in writing with HR of the institution your partner used to work for, or with PMO in Brussels. So choose carefully. Virtual and in-person consultations in Brussels, Special complimentary insurance availability to complement risks not covered by the JSIS (currently offered by Cigna), Coverage of the difference in all medical costs and those reimbursed by the JSIS, Quarterly VOX bulletin sent to all of the retired staff. The mandatory pension age is 66, at which you will be able to receive the full amount of pension that you are entitled. There you also get to ask questions to colleagues at PMO. Working in the EU - your rights | European Union I may need to consider looking twice before making the move. Hi Ben. I hope that people will point out things that Ive missed or should be clearer about more frequently as it improves the content significantly. I see there is a Social security tax (around 12%) , solidarity levy (6%) and EU income tax 8-45%. Thats the pension amount, you will keep on getting the child allowance. They will advise you on any missing documents, and if some payments have been missed, the child should get these in one payment for all of the past period. When Ill find out, Ill update the article.). The surviving spouse of a former EU official is entitled to 60% of the pension paid to the official. The EC does not have favorable conditions to women. In 2023 this amounts to EUR 1331.00 (salary for AST 1 EUR 3327,49 * 10 years of service * 4%). The European Commission Pension Scheme is what is known as a defined benefit/final salary scheme. Its also clear that in this case you cannot address PMO, the EU Paymasters office. However, you would not be able to transfer 23 years proportionally. I read that to find out more on transfer in procedures, one should join a PMO training session. Remember also that the EU institutions pension may not be taxed by national authorities, just like your salary. This question was already answered below. In the case of starting working at 58). The pension would only be decreased in case of EU pension claim before the age of 66 (any period from 58-66). 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 This article outlines the main facts about EU pensions in an easy to understand manner. 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. The minimum pension for EU officials cannot be less than 40% of the basic salary for an EU official in the Assistant grade AST 1 step 1 category.
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