Comparative tables - European Commissionec.europa.eu/employment_social/missceec/table6_en.pdf · 157 Comparative tables Organisation IFinancing II Health care III Sickness – Cash

157

Comparative tables

Organisation

I Financing

II Health care

III Sickness – Cash benefits

IV Maternity

V Invalidity

VI Old-Age

VII Survivors

VIII Employment injuries and occupational diseases

IX Family benefits

X Unemployment

XI Guaranteeing sufficient resources

Appendix: Long-term care

Table VI Old-Age

1

Hungary Latvia

XXI of 1997 on Social Insur-nsion (First pillar) (1997. Évi

törvény a társadalombiz-yugellátásról)

XXII of 1997 on CompulsoryPension and Private Pension(Second pillar). (1997. Évia magánnyugdíjról és a magán-énztárakról)

Act of 1 October 1997 on State SocialInsurance, last amended 27.07.2001 (Parvalsts socia)lo apdros4ina)s4anu)Act of November 2, 1995 on State Pen-sions, last amended 20.12.2001 (Par val-sts pensija)m). Act of February 17, 2000 on State FundedPensions (Valsts fonde)to pensiju likums)

ar: mandatory, state pension,ublicly managed and financed basis.llar: mandatory, privately runnds and is fully funded. This, but privately run pension pil-nistered by several independentte pension funds, which are and supervised by the state.

Insurance system. Statutory social protec-tion against the risk of old-age (vecums;old-age pension - vecuma pensija)includes tiers I and II of the pension sys-tem:Tier I: Pay-As-You-Go financed, benefitslinked to earnings upon which contribu-tions have been paid and length of insur-ance record.Tier II: funded, benefits linked to theamount of accrued pension capital.

58

Bulgaria Czech Republic Estonia

Applicable statutory basis • The Compulsory Public InsuranceCode from 1999 (Кодекс зазадължително общественоосигуряване [Kodex za zadaljitelnoobshtestveno osigurjavane]);

• The Act on Supplementary VoluntaryInsurance from 1999 (Закон задопълнително доброволно пенсионноосигуряване [Zakon za dopalnitelnodobrovolno pensionno osigurjavane]);

• The Labour Code of 1986 (Кодекс натруда [Kodex na truda]).

• Act No 155/1995 on Basic PensionInsurance (last amendment 346/2001)(zákon č. 155/1995 Sb., o důchodovémpojištění)

• Act 42/1994 on Pension SupplementaryInsurance with state benefit (lastamendment 353/2001) (zákon 42/1994Sb. o penzijním připojištění se státnímpříspěvkem),

• Act No 116, 188/2001

State Pension Insurance Act 2001 (Riik-liku pensionikindlustuse seadus)Old Age Pensions Under FavourableConditions Act 1992 (Soodustingimustelvanaduspensionide seadus)Superannuated Pensions Act 1992 (Välja-teenitud aastate pensionide seadus)

• Act LXance PeLXXXI. tosítási n

• Act LXPrivate Funds törvény nyugdíjp

Basic principles • Compulsory and comprehensive;• Solidarity between members; • Equality of members;• Tripartite management of the system;• Insurance resources are organized by

funds.

Benefits State compulsory insurance sys-tem. Benefits linked to contributions andinsurance period.

+ voluntary private insurance.

Old Age Pension (vanaduspension):monthly social insurance benefit based onthe principle of solidarity and paid fromthe revenue of the state pension insurancebudget. Old age pension is granted forlife.

National Pension (rahvapension): seeChapter XI ‘Guaranteeing SufficientResources: Specific Non-contributoryMinimum’.

First Pillwhich is pon a PAYGSecond Pipension fumandatorylar is admiand privaauthorised

Table VI

159

Slovenia

sion and Disability Insurance Act of9, last amended in 2001 (Zakon ojninskem in invalidskem zavarov-”).

Applicable statutory basis

pulsory insurance regulated by law.g-term periodical old-age pension the right to some additional benefits.ditions relate to the age and insuranceension qualifying period. The amountension is earnings related and calcu- on the basis of previous salary

ges) or earnings. More advantageousitions and calculation of pension foren.

Basic principles

Old-Age

Lithuania Poland Romania Slovakia

• Act on State Social Insurance Pensions(July 18, 1994, I-549) (LietuvosRespublikos valstybiniu3 socialiniodraudimo pensiju3 i3statymas)

• Act of 17.12.1998 on Social InsuranceFund pensions, amended (Ustawa z17.12.1998 o emeryturach i rentach zFunduszu Ubezpieczeń Społecznych);

• Act of 13.10.1998 on the social insur-ance system (Ustawa z 13.10.1998 osystemie ubezpieczeń społecznych).

• Act No. 19/2000 on public system ofpensions and other rights of socialassistance (Legea 19/2000 privind sis-temul public de pensii si alte drepturide asigurări sociale);

• Decree-Act No. 51/1990 on work-ageof the employed wife who follows herhusband when sent on permanent mis-sion abroad (Decretul lege 51/1990,privind vechimea în munca a sotiei sal-ariate care îsi urmeza sotul trimis înmisiune permanenta în strainatate);

• Decision No. 1315/2001 on supplemen-tary measures regarding the recorrela-tion of pensions from the public systemof pensions (Hotarirea Guvernului nr1.315/27.12.2001 privind masuri supli-mentare de recorelare a pensiilor dinsistemul public de pensii);

• Act No. 17/2000 on social assistance ofold people (Legea 17/2000 privindasistenta persoanelor vârstnice);

• Act No. 16/2000 on setting up, organi-sation and working of the NationalCouncil of Old Persons (Legea 16/2000, privind înfiintarea, organizarea sifunctionarea Consiliului National alPersoanelor Vârstnice);

• Act No. 145/1997 on health socialinsurances (Legea 145/1997, privindasigurarile sociale de sanatate);

• Decree-Act No. 118/1990 regarding thepolitical prisoners (Decret -Lege cu pri-vire la prizonierii politici).

• Act No. 100/1988 Coll. on social secu-rity (Zákon č. 100/1988 Zb. o sociálnomzabezpečení v znení neskorších predpi-sov);

• Act No. 274/1994 Coll. on the SocialInsurance Agency (Zákon NR SR č.274/1994 Z. z. o Sociálnej poist’ovni vznení neskorších predpisov);

• Act No. 114/1998 Coll. on the socialsecurity of soldiers (Zákon č. 114/1998Z. z. o sociálnom zabezpečení vojakov vznení neskorších predpisov);

• Act No. 73/1998 Coll. on Civil serviceof policemen (Zákon č. 73/1998 Z. z. oštátnej sluz4be príslušníkov Policajnéhozboru, Slovenskej informačnej sluz4by,Zboru väzenskej a justičnej stráz4e Slov-enskej republiky a z4elezničnej polície vznení neskorších predpisov).

Pen199pokoanju

Social insurance system financed mainlyby contributions, providing an amountcomprised of a flat rate and an earningsrelated element.

Transitional period during which the pre-vious pay-as-you-go nature of the schemeis gradually replaced by a mixed one, pro-viding an earnings-related benefit to allwage earners:• 1st pillar: pay-as-you-go;• 2nd pillar: funded.

• social insurance;• periodical benefits;• universal scheme.

• current income financing "pay as yougo";

• based primarily on contributions;• system of solidarity;• income related benefits.

ComLonwithConor pof plated(wacondwom

Table VI Old-Age

1

er II – “Health Care” Compulsory insurance for all employedand self-employed persons, also persons:• receiving unemployment benefit,• receiving sickness or maternity benefit,• recognised as disabled and not

employed,• serving compulsory active military

service,• caring for a child under 1.5 years of

age,• individuals whose spouse is on diplo-

matic or consular duty abroad and whoare residing in the relevant foreigncountry.

Permanent residents aged 15 years andover who are not subject to compulsoryinsurance and have not already beengranted an old-age pension may joininsurance voluntarily. Spouses of self-employed persons may join insurancevoluntarily if they have not reached pen-sionable age.Participation in the 2nd tier of the pensionsystem is compulsory for those insuredpersons who where aged under 30 on01.07.2001 and voluntary for those aged30 – 49 on the same date.

luded foreign and Hungarianee Chapter II – “Health Care”)

- Agricultural workers (self-employedpersons) who have reached state pen-sionable age or are disabled persons ofcategory One or Two;

- individuals performing management ofreal estate or profiting from a personalfarm or household and registered astax-payers from economic activity, whohave reached retirement age or are disa-bled persons of category I or II;

- individuals permanently residing in theRepublic of Latvia and receiving theauthor’s remuneration (except theinheritor of the author rights and othertake-over of author rights), who havereached retirement age or are disabledpersons of category I or II.

Hungary Latvia

60

Field of application • wage earners and labourers, hired forless than 5 working days;

• wage earners and labourers, hired formore than 5 working days or 40 hoursin one calendar month for any kind ofwork, under any method of paymentprovided it is above the standardnational minimum wage;

• paid workers in co-operatives, hiredunder a second or supplementary con-tract;

• self-employed.

Compulsory participation for:- those in employment or similar rela-

tionship, - self-employed persons, and - assimilated groups (for example stu-

dents, unemployed persons, personscaring for children or helpless persons,people in military service etc.).

Voluntary participation is available tounemployed persons, students (when theyare not already insured under the law) andpersons employed abroad.

Also other persons over 18 years whoreceived at least one year of obligatoryinsurance, can also participate in volun-tary pension insurance, but in this caseonly for a maximum of 10 years.

• permanent residents of Estonia • aliens with temporary residence permits• legal refugees.

See Chapt

Exemptions from compulsory insurance

Working pensioners. No special scheme. No special scheme Some excpersons. (S


Table VI

161

ployed personslf-employed persons;prentices;lary holders of public office;rsons who engage in agriculturaltivity as their sole or principal occu-tion (and their families), providedat upon application for insuranceey:are 15 years old or over physically capable of pursuing agri-cultural activity, andhave a minimum income (from agri-culture or elsewhere) for each insuredmember of their household;cipients of unemployment cash bene- and unemployed persons entitled tonsion and invalidity insurance;p sportsmen and -women.

Field of application

Chapter V "Invalidity". Exemptions from compulsory insurance

Slovenia

Old-Age

See Chapter V "Invalidity" • all wage earners in paid employment;• self-employed persons;• family members working in the enter-

prise of a self-employed person;• certain assimilated self-employed per-

sons, such as artists;• persons carrying out a contract for serv-

ices similar to a contract of employ-ment;

• other persons voluntarily insured.

• wage earners;• other insured persons on the basis of an

individual insurance contract.

Compulsory insurance for all employedpersons, members of co-operations, self-employed persons, unemployed personsand soldiers.

• em• se• ap• sa• pe

acpathth--

-

• refitpe

• to

From payment of contributions areexempted following self-employed per-sons:• social insurance old age, disability and

survivorship pensioners• disabled of Group 1 and 2 from child-

hood persons who receive social pen-sion.

• old age recipients of social pensionFarmers, their family members andlicence holders are exempted because oflisted above reasons and additionaly ifthey are insured by pension isurance dueto other reasons or have acquired manda-tory insurance period.

No special scheme. No special scheme. Self-employed: if the taxable income overprevious year is below 100 000 SKK, theparticipation is voluntary. This sum willbe valorized on 1 July of each calendaryear from the year 2002 on 10%.

See


Table VI Old-Age

1

r:sion: 15 years (in exceptional

st 10 years)n: 20 years lar: None.

10 years insurance record.

r: 62 years of age and at leastsurance period. lar: 62 years of age.

All years of insurance and contributionstaken into account.

Hungary Latvia

62

Conditions1. Minimum period of

membership

15 years of insurance record (12 of themreal) before the age of 65 for both sexes.

15 years of insurance period if claimanthas reached 65 years of age.

15 years of pensionable service in Esto-nia.

First pillaPartial pencase at leaFull pensioSecond pil

2. Conditions for drawing full pension

Claimant's age plus claimant's insurancerecord must be equal to at least 100 pointsfor men and 90 points for women. After31 December 2004 the required sum ofrecord and age for women shall beincreased by one until it reaches 94.

Minimum insurance period of 25 years. No concept of full pension. First pilla20 years inSecond pil


Table VI

163

insurance years (years covered byributions).

Conditions1. Minimum period of

membership

ally there is no full pension. Theer is the qualifying period, the higherhe percentage for calculating theunt of pension, with no upper limit.ditions described by the law as mini- conditions for acquisition of the

t to old-age pension: years (men) and 63 years (women): years of insurance period; years (men) and 61 years (women): years of pension qualifying period; years: 40 years for men and 38 yearsr women of pension qualifyingriod.

sion Qualifying Period includes:e period of time covered by compul-ry insurance, pluse credited non-contributory period.

sionable age can be lowered to mini- 58 years for men and 56 years foren by virtue of child-upbringing.

2. Conditions for drawing full pension

Slovenia

Old-Age

15 years of pension insurance. • Insured persons born before01.01.1949:- women: 20 years of contributory and

non-contributory periods; - men: 25 years of contributory and

non-contributory periods. An old-age pension can be drawn bypersons with fewer contributory andnon-contributory periods (15 years forwomen and 20 years for men), but thereis no guarantee of a minimum pension.

• Insured persons born after 31.12.1948:No minimum period is required, but fora guaranteed minimum pension the fol-lowing contributory and non-contribu-tory periods must have been fulfilled:- women: 20 years;- men: 25 years.

Contributory periods: periods duringwhich social insurance contributionsactually paid. Non-contributory periods: periods duringreceipt of sickness benefit, nursing bene-fits, rehabilitation benefits etc but theseshall be limited to one-third of the contri-bution periods.

15 years insurance period. Full pension (Starobný dôchodok):• 25 years of employment.

Partial pension (Pomerný starobnýdôchodok):• 10 years of employment;• women: 20 years of employment for the

partial pension in 60 years.

Pension for years of service (militarypension) (Výsluhový dôchodok):• 20 years of military service.

15 cont

The mandatory pension insurance periodis 30 years for men and 28 years forwomen. (this requirement is being gradu-ally increased for women by one year peryear, until it reaches 30 years in 2004).

• Insured persons born before 1.01.1949:Reached a specified age and fulfilled aspecified period of affiliation.

• Insured persons born after 31.12.1948:Reached a specified age and have paidcontributions.

The applicant must fulfill cumulativelythe conditions regarding the standard ageand the minimum period during which thecontribution was paid.

Basic system:• minimum period of employment; • reaching pensionable age.

Pension for years of service (militarypension):• minimum period of employment.

Leglongis tamoConmumrigh• 65

15• 63

20• 58

fope

Pen• th

so• th

Penmumwom


Table VI Old-Age

1

n both pillars). 62 years (to be phased in by 2003 for menand 2009 for women).Actual retirement age as of 01.01.2002 isthe following:Men: 61.5 years.Women: 58.5 years (to be raised by 6months every year).Persons who have an insurance record ofat least 30 years and have raised 5 ormore children or a disabled child until theage of 8 can claim full pension 5 yearsbefore the standard retirement age.

Hungary Latvia

64

3. Legal retirement ageStandard pension

• 61 and 6 months for men;• 56 and 6 months for women.At the beginning of each year the stand-ard pension age shall be increased by 6months until it reaches 63 for men and 60for women in 2009.

Men: 60 yearsWomen: depends upon the number ofchildren raised:

Number Normal Retirement of children age

No children 57 years,1 child 56 years,2 children 55 years,3 or 4 children 54 years,5 or more children 53 years.

State pensionable age shall be graduallyincreased by 2 months for men and 4months for women each year from 31December 1995 until 31 December 2006,until it reaches 62 years for men and 57 -61 years for women.

In 2002:• men: 63 years• women: 58 years 6 months

The retirement age is gradually increasingand shall be equalised for men andwomen by 2016 at the age of 63.

62 years (i


Table VI

165

above. Full pensionable age is 63 for and 61 for women (phased-in until8 for men, 2017 for women). Can beered by virtue of child upbringing toyears (men) or 58 years (women).rement before or after full age resultsonus/malus system.

3. Legal retirement ageStandard pension

Slovenia

Old-Age

In 1995 the pensionable ages were 55years for women and 60 years for men.Since then they have been graduallyincreased by four months a year forwomen and by two months a year formen. Later the speed of increase waschanged into 6 months per year for menand women. This will continue until theyreach 62 years and 6 months for men and60 years for women. Currently (2002)they are:• women: 58 years • men: 62 years.

• women: 60 years of age;• men: 65 years of age.

• age: 60 years for women, 65 years formen (this is the standard age which isplanned to be reached after a transi-tional period of 13 years, and which isphased-in as from 1 April 2001);

• length of service: 35 years for men,30 years for women (this is the standardlength of service which is planned to bereached after a transitional period of13 years, and which is phased-in asfrom 1 April 2001).

Full pension:• Men and women (depends upon risk

category of occupation and the numberof employed years in risk category 1):- Risk category 1: 55 or 58 years; - Risk categories 2 and 3: 60 years.

• Women (who are not covered by advan-tageous provisions for those working inrisky environments, e.g. a woman whohas worked in risk category 1 and hasnot raised children): amount dependsupon the number of children raised (atleast 10 years of personal care for eachchild, or 5 years of personal care for achild older than 8 years):- without child 57 years;- one child 56 years;- two children 55 years;- three or four children 54 years;- five or more children 53 years.

Partial pension:• Men and women 65 years;• Women 60 years, if they

completed 20 yearsof employment.

See men200low60 Retiin b


Table VI Old-Age

1

lar: Early pension (korkedvez-nyugdíj): available to those in activities that are hazardous. Paid 2 years early to thosee worked in these conditions

ast 10 years (men) or at least 8omen), pensionable age is fur-

uced by 1 year for every addi-riod of 5 years (men) or 4 years). There is no reduction in theof benefit.ement (korengedményes: This measure is not strictlyd as a pension benefit but wased for employment policy rea-order to decrease unemploy-

tirement pension is based on agreement between representa-ployers, the National Pension

inistration and employees. Theent benefit can be paid 5 yearssionable age. The costs of theid during this period are reim-the employersion Fund (Nyugdíjbiztosítási

n is distributed by the Nationalayment Directorate (Nyugdíj-

gazgatóság).d retirement pension (előreho-ségi nyugdíj) advanced retirement pensiontett összegű előrehozott öreg-gdíj)illar: No early pension.

Transitional provision only (in force until01.07.2005).Men: 60 years of age if 30 years of insur-ance.Women: 2 years before retirement age if30 years of insurance (56.5 years).

Hungary Latvia

66

Early pension • Military officers and related occupa-tions retire after 25 years of workingrecord (2/3 of them in military service),and military pilots and submarine per-sonnel after 15 years of working recordirrespective of age.

• Until 31 December 2009 early retire-ment is allowed for persons employedat 1st and 2nd category of work at thefollowing conditions: - minimum 15 years employment

record at 1st category and achieve-ment of required points (sum of ageand insurance record) for drawingfull pension, but not less than 47years of age for women and 52 formen;

- minimum 20 years employmentrecord at 2nd category and achieve-ment of required points for drawingfull pension, but not less than 52years of age for women and 57 formen.

• Until 31 December 2009 teachers areentitled to early retirement at minimum30 years of service for men and 25years for women, 3 years before thestandard pension age.

The early pensions for 1st and 2nd cate-gory of work, as well as for the teachersare paid by the special professional pen-sion plans (See Chapter I above)

Minimum insurance period of 25 yearsand maximum 2 or 3 years earlier thannormal.

Early Retirement Pension (ennetäh-taegne vanaduspension) available up to 3years before the legal retirement age.

Old Age Pension Under Favourable Con-ditions (soodustingimustel vanaduspen-sion)Paid after at least 15 years of pensionableservice:• Available 5 years earlier than legal

retirement age for:• one of the parents, the carer or the

guardian who raised a child with amoderate, severe or profound disabilityfor at least 8 years

• one of the parents, the carer or theguardian who has raised 5 or more chil-dren for at least 8 years

• a person involved in the clean-up of theChernobyl nuclear power station

• those who have been unlawfullyimprisoned or in exile for at least 5years. If less than 5 years then theretirement age is reduced by one yearfor every year of imprisonment or exile.

• Available 3 years earlier for one of theparents, the carer or the guardian whohas raised 4 children for at least for 8years.

• Available 1 year earlier for one of theparents, the carer or the guardian whohas

• raised 3 children for at least for 8 years• Available at 45 years of age for suffer-

ers of pituitary dwarfism.

Old Age Pensions Under FavourableConditions are also paid to workers inoccupations that are considered hard orhazardous (e.g. workers in chemical,metal, glass, pulp industry, mining etc.),may retire 5 or 10 years before the legalretirement age, if they have fulfilled qual-ification requirements foreseen by the law(from 15 to 25 years of pensionable serv-ice of which at least half in the given pro-fession).

Superannuated Pension (väljateenitudaastate pension):Early retirement available for certain pro-fessional groups (e.g. pilots, mariners,miners, some groups of artists) whoseprofessional abilities have declinedbefore the normal retirement age, pro-vided they have the required pensionableservice (from 15 to 25 depending on theprofession).

• First pilményes involvedto healthwho havfor at leyears (wther redtional pe(womenamount

• Pre-retirnyugdíj)classifieintroducsons in ment.

The pre-retripartite atives of emFund Admpre-retirembefore penpension pabursed by to the PenAlap). The pensioPension Pfolyósító I• Advance

zott öreg• Reduced

(csökkenségi nyu

• Second p


Table VI

167

special early pension. Possibility ofntages (no malus) in the case ofement before the full retirement agefor men; 61 for women).

Early pension

Slovenia

Old-Age

No special scheme. • For insured persons born before1.01.1949:Conditions:- Women aged 55 and over, with a 30-

year qualifying period;- Totally incapacitated persons may

receive pension five years earlier ifthey have fulfilled the qualifyingperiod requirements;

- Persons working in unhealthy condi-tions or performing a specified typeof work (official list): 5 years earlier(e.g. journalists, glass workers, railworkers), 10 years earlier (miners,persons working with lead, cadmiumor asbestos, steel workers, pilots,divers) or 15 years earlier (windinstrument musicians).

Early pensions are calculated using thegeneral pension calculation method.The amount of the pension is increasedbased on each year of insurance.

• For insured persons born after31.12.1948:None.

• The insured who exceeded the completeperiod of contribution with at least10 years can apply for an early pensionmaximum 5 years before the standardretirement age.

• The insured who reached the completeperiod of cotisation and also those whoexceeded the complete period of contri-bution with at least 10 years can applyfor a partial early pension maximum 5years before the standard retirementage.

No special scheme. No advaretir(63


Table VI Old-Age

1

r: after accruing at least 38ervice and reaching the age ofossible to continue work for atalendar days without claiming

and to receive an increased pen-increase is equal to 0.3% of the accident-related disability pen-each period of 30 days of addi-ice. The old age pension mayeased as to exceed the averagearnings upon which the old age calculated.lar: None.

Unlimited deferment possible.

r: average monthly income andperiod.llar: Depends upon the sum ofn fee and the economic per-of fund selected by the fundlso depends upon the type of

lected by the fund member.

Insurance record until 1996, amount ofcontributions paid since 1996 and age ofinsured person.

Hungary Latvia

68

Deferred pension Deferment is permitted. Increases fordeferment are reflected in the pension cal-culation provided that additional workingrecord and a higher reference earning hasbeen achieved.

Minimum of 90 days after normal retire-ment age, no maximum limit.

Unlimited deferment possible. First pillayears of s62, it is pleast 365 ca pension sion. The old age orsion after tional servbe so incrmonthly epension isSecond pil

Benefits1. Determining factors

• Insurance record;• working record;• age;• national average insurance income;• average individual insurance income;• individual coefficient (a ratio between

the actual individual’s income and therespective national average insuranceincome).

Occupation (i.e. category of work) is afactor for early pension calculation.

Earnings and insurance period. • years of pensionable service acquiredbefore 31.12.1998

• registered social tax payments after1.1.1999

First pillainsurance Second picontributioformance member. Aannuity se


Table VI

169

ase of continuation of labour relationegistered self-employment after con-ns for pension were fulfilled pension,t paid. No upper age limit for labour

tion (contract of employment).

Deferred pension

evious earnings;ngth of insurance or pension qualify-g period; nder of the recipient;e at retirement (before or after fulltirement age).

Benefits1. Determining factors

Slovenia

Old-Age

Those with the obligatory insuranceperiod can defer their application for pen-sion.Pension is then increased by 8% for eachyear. Deferment is applied only in thecase if the person does not receive in theyears of deferment any part of pension

Increased period of employment reflectedin pension formula (no maximum period,all periods are taken into account).

No special scheme. Possible after achieving the retirementage, but the condition of minimum periodof membership required.

In cor rditiois norela

Insured income and number of insuredyears.

• Insured persons born before 1.01.1949:Amount of reference wage and numberof years' insurance.

• Insured persons born after 31.12.1948:- amount of remuneration subject to

contributions throughout the insur-ance period

- age of the insured person at time ofaward of pension.

Previous earnings and the length ofemployment.

• duration of employment (insurance);• working risk category;• sex.

• pr• le

in• ge• ag

re


Table VI Old-Age

1

:nt of pension depends on insur-d and is expressed as a percent-erage, monthly, gross incomece 1988. 20 years of insurance period,r each of the insurance years

21-25,r each of the insurance years

26-36,for each of the insurance ears 36-40,for each of the insurance yearsyears lar:provides the member with pen-fits in the form of an annuity the member, or as a lump-sum

annuity benefits:nuity paid in monthly install-

ntil the end of the pensioner's

uity paid for a set period: if ther dies during this period, the

is transferred to his/her heirs;the pensioner survive thishe benefit is paid until the endr life.nuity paid until the fund mem-ise and then paid to their heirs

t period that starts to run from

urvivorship annuity paid to thember and his/her beneficiariess at least one of the beneficiar-

ve.um payment:uest to any fund member whorovide membership dues for at months before reaching retire-

e. If the fund member does notlump-sum payment, a periodics calculated for him/her but thiss not subject to the usual mini-ounts.

ember dies before retirement

Fund and the central budgetover such annuities.

Pension formula:P = K / G whereP: annual pension, of which 1/12 is themonthly pension;K: the pension capital of insured person;G: time period (in years), during whichpension disbursements are planned, start-ing from the pension allocation year (pro-jected life expectancy at a certainretirement age).Pension formula for persons who have atleast 1 year of social insurance recordprior to 1996:P = Ks + K / G where P, K, G see above;Ks: starting (credited) capital, calculatedaccording to the following formula:Ks = Vi x As x 0.2 whereAs: the insurance record until the year1995 (inclusive);Vi: the average individual contributionearnings (see below "Reference earningsor calculation basis").When a participant of the 2nd tier reachesretirement age and applies for a pension,there are 2 options:1) the accrued funded pension capital isadded to the 1st tier pension capital and apension is calculated from the totalamount according to the formuladescribed above;2) the participant may, for the accruedfunded pension capital, purchase a lifeannuity from an insurance company.

Hungary Latvia

70

2. Calculation method or pension formula

The amount of the old pension shall becalculated by multiplying the referenceincome by the sum of one percent forevery full year of insurance record andthe respective part of any remainingmonths.

Every pension consists of the followingtwo elements:1) Basic Amount: flat rate 1,310 CZK permonth. If two or more pensions aregranted (old age, invalidity, survivors) theBasic Amount is paid only once.2) Percentage Amount: earnings relatedelement calculated from the PersonalAssessment Base and the number of yearsof insurance: 1.5 % of the PersonalAssessment Base per year of insurance(no maximum).

Old Age Pension:calculated on the basis of a 3-part for-mula: • a base amount • a component calculated on the basis of

years of pensionable service • an insurance component.

From 1.1. to 31.3.2002 the base amount isEEK 410 per month From 1.4.2002, thebase amount is subject to indexation.

The component calculated on the basis ofyears of pensionable service depends onthe number of years of pensionable serv-ice until 31 December 1998.

The insurance component depends on thesum of annual pension insurance coeffi-cients of the insured person. An annualpension insurance coefficient indicateshow much individually registered socialtax has been paid over a calendar year,compared to the national average amountof social tax over the same calendar year.

The amounts of the component calculatedon the basis of years of pensionable serv-ice and the insurance component dependon the value of a year of pensionableservice. The value of a year of pensiona-ble service indicates the cash value of oneyear of pensionable service and the cashvalue of an annual pension insurancecoefficient 1,0.

The value of a year of pensionable servicefrom 1.4.2002 is EEK 30.19. The value of a year of pensionable serviceis subject to annual indexation.

First pillarThe amouance perioage of avearned sin• 53% for• + 2% fo

between• + 1% fo

between• + 0.5%

between• + 1.5%

after 40 Second pilThe fund sion benechosen bypayment.a) Pension• a life an

ments ulife;

• a life annpensionebenefit should period, tof his/he

• a life anber's demfor a sedeath;

• a joint sfund meas long aies is ali

b) Lump-s• upon req

fails to pleast 180ment agrequest benefit ibenefit imum am

• fund mage.

Guaranteeshall not c


Table VI

171

ings replacement system:en: 35% of the Pension Rating Basisr 15 insurance years plus 1,5%crease for each additional year ofalifying period, no upper maximum (for 40 years of qualifying period:,5%; gradual lowering from 85% for years for men and 35 years for

omen - set by the old legislation -; for5% yearly from 2001 onwards); omen: 38%of the Pension Ratingsis for 15 insurance years: plus 1,5%

crease for each additional year ofalifying period, no upper maximum (for 38 years: 72.5% of the Pensionting Basis).

us (reduction of the pension amount)ase of retirement before full retire-t age of 63 (men) and 61 (women).us (increase of the pension amount)ase of continuation of employmentr 63/61 years of age.e exceptions for men with 40 anden with 38 working years.

2. Calculation method or pension formula

Slovenia

Old-Age

Old age pension (Senatves pensija)The old age monthly pension is calculatedaccording to the formula:P=a*B+0.005*S*K*D+0.005*s*k*D,• B: basic pension, determined by the

Government and no less than 110% ofminimum standard of living.

• a: the ratio of all acquired by a personinsurance period to mandatory insur-ance period defined by the law.

• S: the insurance period acquired whilstworking under an employment contractup to 1994,

• s: the insurance period acquired whilstworking after 1994;

• K: "rate of individual insured income"for the period until 1994, which is cal-culated by dividing the annual wage ofthe insured individual by the annualnational average wage. As there is noreliable data about the wage of theinsured person before 1994 s/he isallowed to choose the five most favour-able consecutive years from 1984 to1993.

• k: "rate of individual insured income"for the period from 1994, calculatedaccording to State Social InsuranceFund data on the claimant's insuredincome. The wage upon which the pen-sion contribution was paid is divided byinsured income D of that year (seebelow) and the average for the wholeperiod from 1994 is calculated. As from2004 the data prior to 1994 shall begradually excluded and the middle partof the formula will disappear. Pursuantto the law K can’t be higher than 5 andk can’t also be higher than 5.

• D: insured income (Draudziamosiospajamos) is calculated as the monthlyaverage wage from which pensioninsurance contributions are collected aswell as any state social insurance sick-ness, maternity, and unemploymentbenefits. The Government, taking intoaccount the recommendation of theState Social Insurance Fund Council(Valstybinio socialinio draudimo fondotaryba), approves the annual and quar-terly average insured income for thewhole country. Annual insured incomeis used to calculate the 'rate of the indi-vidual insured income' and the quar-terly insured income is used in thepension formula.

• The coefficient 0.005 means that 0.5%of the average wage earned in each yearis added annually to the supplementarypart of the future pension of the person.

• Insured persons born before 1.01.1949:The amount of the old-age pension iscalculated using the following equation:

E = kb x (wpw x os x 1,3% + wpw x onx 0,7% + 24%)

- kb: "Basic Amount" equal to nationalaverage wage over the quarter pre-ceding that during which the retire-ment, disability and survivors'pensions were last increased;

- wpw; "Reference Wage Co-efficient"(shows the relation, as a percentage,between the average reference wagefor the pension calculation period andthe national average wage during thatperiod);

- os: periods during which contribu-tions were paid;

- on: periods during which no contribu-tions were paid.

• Insured persons born after 31.12.1948:The amount of the old-age pension iscalculated as follows: The total pensionassets accumulated are divided by theaverage remaining life expectancy atthe age of application for pension.

• Standard retirement pension: In thepublic system, the amount of the pen-sion at the time of registering for pen-sion is determined by multiplying theannual average score achieved by theinsured during the period when he paidhis contribution, by the value of a scoreof pension in the month of registeringfor pension.

The annual average score achieved by theinsured during the period of contributionis determined by dividing the totalnumber of scores achieved by the insuredeach year during the period of cotisation,by the number of years corresponding tothe complet period of cotisation.

The annual score of the insured resultsfrom adding all toghether the scoresachieved each month. The number ofscores achieved each month is determinedby refering the monthly gross individualsalary, including the rises/increases, or,according to the situation, the monthlyincome insured, which have constitutedthe calculation basis of the individualcontribution at the social insurance, to themonthly average gross salary from thatmonth, communicated by the NationalCommission for Statistics.

• Early pension: The amount of this pen-sion will be established following thesame conditions as for standard pen-sion.

• Partial early pension: The amount of thepartial early pension is established onthe basis of the amount of the standardpension by diminishing it accordinglyto the total period of contribution andthe number of months which reducedthe standard retirement age.

Full pension:• Risk category 1:

60% of reference earnings plus a sup-plement of 2% for each year from the21st year of employment (up to a maxi-mum supplement of 30%) or withoutrestriction (for example miners workingin uranium mines during a period of atleast 10 years);

• Risk category 2:55% of reference earnings plus a sup-plement of 1,5% for each year from the21st year of employment (up to a maxi-mum supplement of 25%);

• Risk category 3:50% of reference earnings plus a sup-plement of 1% for each year from the26th year of employment (up to a maxi-mum supplement of 25%).

Partial pension:2% of average monthly earnings for eachyear of employment and 4% for eachextra year worked after entitlement topartial pension (i.e. after 10 years ofemployment for men and 20 years forwomen) up to 25 years of employment atwhich point claimant is entitled to fullpension.

Pension for years of service:After 20 years of military service: 40% ofincome.

Allowance for years of service (Zvýšenievýsluhového dôchodku): Up to a 20 years of military service: 2%of income for each year of service.

Earn• m

foinqu%7240w0,

• wBainqu%Ra

Malin cmenBonin cafteSomwom


Table VI Old-Age

1

ar: Average monthly wagesce 1988llar: Funded system where pen-unts depend upon individualn account and not amount of

For persons who have at least 1 year ofsocial insurance record prior to 1996, Viequals the individual's average contribu-tion earnings of a 48 month periodbetween 1996 and 2000 (excluded).For persons whose insurance record is noless than 30 years and the average insur-ance contributions earnings are lowerthan the national average for years 1996-1999, Vi is set at the level of nationalaverage contributions earnings for years1996-1999.The Vi is set at 40% of the national aver-age contributions earnings for the previ-ous year if:• the claimant has not been employed

from 1 January 1996 to the day of his/her pension application,

• the claimant started employment after2000 or

• the average contribution earnings ofthe claimant for respective period arelower than 40% of the national averagecontributions earnings for the previousyear.

Hungary Latvia

72

3. Reference earnings or calculation basis

Reference income is determined as fol-lows: the national average monthlyinsured income for the previous year ismultiplied by the individual coefficient ofthe claimant.

The individual coefficient is calculated onthe basis of the individual's income onwhich insurance contributions are paidfor three consecutive years in the 15 yearsof participation in the insurance schemebefore 1 January 1997, as chosen by theperson, and for the period after that dateuntil the moment of retirement.

For the purpose of calculating the individ-ual coefficient the following shall bedetermined:• the ratio between the average monthly

insured income of the person for thechosen period through to 31 December1996, and the national average monthlyinsured income for the same period asannounced by the National Social Secu-rity Institute;

• the ratio between the average monthlyinsured income of the person for theperiod after 31 December 1996, and thenational average monthly insuredincome for the same period.

The individual coefficient is then deter-mined in the following way: each ratiounder paragraph 4 is multiplied by thenumber of months for which it has beenestablished, and the sum of the resultsachieved in this way is divided by thetotal number of months included in thetwo periods.

If the person has not worked after 1 Janu-ary 1997, the individual coefficient shallbe equal to the ratio under the above item1, and if the basic period is entirely afterthis date, the individual coefficient shallbe equal to the ratio under the above item2.

Personal Assessment Base:• originally based on the average gross

earnings over the ten years precedingretirement (1996). This period shall beextended by one year every year until itreaches a total of 30 calendar years.Currently this period covers all earn-ings since 1985.

• all earnings are indexed in relation tothe average wage.

• not all earnings are incorporated in thePersonal Assessment Base, monthlyearnings are taken into account as fol-lows:- Up to 7 100 CZK: 100% incorpo-

rated.- From 7 100 to 16 800 CZK: 30%

incorporated.- Over 16 800 CZK: 10% incorporated.

Up to 31.12.1998 – years of pensionableservice.From 1.1.1999 total social tax paid onearnings during full career.

First Pillearned sinSecond Pision amocontributioearnings.


Table VI

173

sion Rating Basis (PRB) (pokojninskava): monthly average earnings in anyecutive 18 year period (phased-in

l 2008; 12 years in 2002) of insurancewing 1 January 1970, whichever is

most favourable for the insured per- Calculation of the PRB is based onings (net of tax and other contribu-s) upon which pension contributions been paid.

minimum and maximum pension rat-basis is determined by law and calcu- and published by the Institute for

sion and Invalidity Insurance.

3. Reference earnings or calculation basis

Slovenia

Old-Age

For those who do not have the mandatoryperiod required for a full basic pensionamount, the same formula is used but theBasic Pension ("B") element is propor-tionately reduced (see multiplier a above).

See "Calculation Method or Formula"above.

• Insured persons born after 1.01.1949:Reference wage either:- average wage over 10 consecutive

years selected from among the previ-ous 20 years, or

- the best 20 years of any insuranceperiod.

Ceiling: 250 % of the national averagewage.

• Insured persons born before31.12.1948:Accumulated capital from contribu-tions.

Average earnings over any 5 consecutiveyears in the last 10 years of economicactivity.

Full and Partial pensions:Average gross monthly earnings for thebest non-consecutive five years duringthe previous ten. These earnings are thentaken into account as follows:• up to 2500 SKK (60 EUR) 100%;• from 2500 to 6000 SKK (143 EUR)

33,3%;• from 6000 to 10000 SKK 10%;• over 10000 SKK (238 EUR) disre-

garded.

Penosnoconsuntifollothe son.earntionhaveTheing latedPen


Table VI Old-Age

1

er I – “Financing”. The following periods are credited priorto 1 January 1991:• the periods of employment• the periods deemed as equivalent to

employment, for example:compulsory military service, period ofstudies at institutions of higher educa-tion, periods of child care until the childreaches 8 years old, etc.

r: None. lar: None.

No special scheme.

scheme. No special scheme.

Hungary Latvia

74

4. Non-contributory periods credited or taken into consideration

• time for attending a handicapped familymember with at least 90% loss ofcapacity is recognized as an insurancerecord for the career;

• unpaid child care leave until accom-plishment of 3 years of age;

• compulsory military service of soldiers; • periods of receipt of unemployment

benefits.

These periods are covered by a transferfrom the state budget. The due amount ofcontributions is 29% of the minimumwage.

Substitute insurance periods are creditedto:• full time students at secondary school

or university, (max 6 years after the age18),

• job seekers registered at a LabourOffice (max 3,5 years),

• persons with reduced working capacityundergoing employment training,

• persons on military or civilian service, • persons caring for a child up to the age

of 4 years (18 years if child suffers froma long-term severe disability thatrequires special care),

• persons caring for a close relative whois incapacitated,

• recipients of full invalidity pension whoare of old age pensionable age.

Credited periods up to 31.12.1998, timespent: • as a member of an artistic association or

trade union• serving in the armed forces of Estonia

or any period equal thereto• in compulsory military service or com-

pulsory alternative service• in full-time study• as the spouse of a diplomat in a foreign

mission (provided the spouse has alsomoved to that country)

• receiving unemployment benefit or par-ticipating in labour market training

• working on a farm• raising a child for at least 8 years • fighting for independence• temporarily incapacitated for work.

Starting from 01.01.1999 the state payssocial tax for some categories of non-active persons (see Chapter I ‘Financing:Public Authority Participation: Invalidity)

See Chapt

5. Supplement for dependants:Spouse

No special scheme. No special scheme. No special scheme First pillaSecond pil

Children No special scheme. No special scheme. No special scheme No special


Table VI

175

riods out of employment determined the Act (e.g. during child care, occu-tional rehabilitation, etc).dded qualifying period for: undergraduate and postgraduate stud-ies, military service, training forancillary police units;for the time registered with theemployment office as job-seeker orunemployed person;some other periods mainly defined byprevious laws.

4. Non-contributory periods credited or taken into consideration

upplements. 5. Supplement for dependants:Spouse

upplements. Children

Slovenia

Old-Age

• Periods during which sickness, mater-nity and unemployment benefits arereceived.

• Periods for which some categories ofpersons are insured by state means. SeeChapter V "Invalidity".

The following periods are classified asnon-contributory years:Periods of:• sickness allowance payment;• parental leave;• university study;• caring for a dependent person.

• military service period;• the university studies period;• the period during which the person take

the benefice of social insurance rights;• the periods mentioned in the Decree-

Act No. 118/1990 regarding the politi-cal prisoners;

• the periods mentioned in the Decree-Act No. 51/1990 regarding the workage of the wage-earning spouse whofollows his/her spouse who is sent inpermanent mission abroad;

• the periods mentioned in the UrgentDecision of Government nr. 98/1999regarding the collective lay-offs;

• the periods mentioned in special laws.

• basic military service;• activity in resistance (liberation move-

ment);• registered unemployment during the

entitlement for unemployment benefit; • caring for children up to 3 years of age− 6 years of age in case of for heavilydisabled children;

• periods of receiving invalidity benefit;• caring for family members (nursing

sick relatives).

• Pebypa

• A-

-

-

No special scheme. No special scheme. No special scheme. Flat rate monthly pension of 570 SKK(13 EUR) if spouse is not entitled to anyother benefit (see primarily Chapter XI"Guaranteeing sufficient resources"), hasno earnings from economic activity, and • her husband was employed beyond pen-

sionable age or is entitled to pension forold age, invalidity or years of service;

• she is an invalid, or• she is older then 65 years.The benefit terminates upon divorce, sep-aration or death of husband.

No s

No special scheme. No special scheme. No special scheme. No special scheme. No s


Table VI Old-Age

1

scheme. No special scheme.

r:um amount of the social insur-

on is HUF 20,100 per month.lar: No minimum pension.

If the insurance period is at least 20 years,minimum pension is 1.1 x state socialsecurity benefit.If the insurance period is 20-30 years,minimum pension is 1.3 x state socialsecurity benefit.If the insurance period is more than 30years, minimum pension is 1.5 x statesocial security benefit.(State Social Security Benefit = 30 LVLper month)

r:could not be more than 100% monthly salary, which was thehe pension calculation and itunder the pension contribution

lar: None.

The maximum pension is not defined butdepends on the ceilings for contributions(see Chapter I "Financing").

Hungary Latvia

76

6. Special supplements Widowed pensioner who does not receivesurvivor’s pension is entitled to a supple-ment equal to 20% of the pension (or pen-sions) of dead spouse.

Pension supplements to:• participants of the Estonian War of

Independence: 100% of the nationalpension rate (NPR)persons declared at least 40% incapaci-tated for work as a result of a nucleardisaster, nuclear test or an accident at anuclear power station: 10% NPR

• participants in the Second World War ormembers of the Self-Defence Force:10°/a NPR

• widows and widowers of participants ofthe Estonian War of Independence:100% NPR.

National Pension Rate (NPR): EEK 800per month

No special

7. Minimum pension The amount of the individual pension forold age may not be less than 105% of thesocial old age pension defined by a Gov-ernment’s Decree. For pensioners achiev-ing the required number of pints for fullpension, the minimum amount shall be115% of the social pension.

Basic Amount: flat rate of 1310 CZK permonth.Percentage Amount: 770 CZK per month.

100% NPR. First pillaThe minimance pensiSecond pil

8. Maximum pension Determined by calculating factors, butmight be subject to limitation by law. In2002 the maximum pension is 4 times thestandard social pension.

No special scheme No special scheme First pillaBasically, of averagebasis of tshould be ceiling.Second pil


Table VI

177

plementary allowance (varstrveniatek): means-tested allowance. Enti- are recipients of old-age, invalidity,ivor’s and widow/er’s pension withanent residence in RS, whose pen-

does not attain the amount deter-ed by law, if they and their familybers do not have other income that

ld be sufficient for subsistence. amount depends on completed pen- qualifying period for old-age or inva-y pension and on the number ofpients for survivor’s and widow/er'sion.Chapter V “Invalidity: Disability

wance and Nursing allowance”.

6. Special supplements

nsured person entitled to old-age pen- is guaranteed the minimum pensionhe amount of 35% of the minimumion rating base (minimum pension:13 SIT per month).

7. Minimum pension

law sets the maximum Pension Rat-Basis (314 000 SIT per month).

8. Maximum pension

Slovenia

Old-Age

No special supplements. Some generalincome protection measures applied forall population.

• Medical Care Supplement (dodatekpielęgnacyjny):Granted to persons entitled to a retire-ment, disability or survivors' pensionwho:are totally incapable of work andrequire the assistance of another person,or have reached the age of 75.Amount: PLN 120,64 per month(adjusted in the same way as the pen-sions)

• Funeral Grant (zasiłek pogrzebowy):Available to persons who paid thefuneral costs for a pensioner or a mem-ber of their family.Amount: 200% of the national averagewage at time of death.

• discount for the local transport tickets; • discount for tickets for repose and treat-

ment.

Bonus to pension of policemen: 1% fromthe calculation basis foreach year of service.The maximum sum for all benefits: 8282SKK per month.

SupdodtledsurvpermsionminmemwouThesionliditrecipensSee allo

No special scheme. Amount: PLN 530,26 per month. 816 988 ROL per month. Full and Partial pension: 550 SKK permonth.

An isionin tpens26 4

No special scheme. 100% of reference wage. No special scheme. Full and Partial pension:• 8282 SKK per month for those

employed as miners for at least 15 years(10 years in uranium mines) or whohave become invalid as a result of anoccupational disease acquired whilstperforming this work;

• 7286 SKK per month for thoseemployed in risk category 1 for at least20 years or who have become invalid asa result of an occupational diseaseacquired whilst performing this work;

• 6566 SKK per month for thoseemployed in risk category 2 for at least20 years or who have become invalid asa result of an occupational diseaseacquired whilst performing this work;

• otherwise 6389 SKK per month.

Pension for years of service: 75% of theassessment basis.

Theing


Table VI Old-Age

1

r:pension (korkedvezményes

in case of persons involved inazardous to health,years (8 years women) of suchs, 2 years reduced in retirement

ch further 5 years (4 years, further 1 year reduction innt age, ent (korengedményes

his is a measure introduced bynt policy to decrease unem- It is based on a tripartite agree-ngst employers, the NationalFund Administration and. It can be claimed a maximumearlier than the retirement age. of the pension over these 5eimbursed to the Pension Fundployer. The pension is distrib-he National Pension Paymente.lar: None.

80% of normal pension (the full pensionrestored after normal retirement age).

Hungary Latvia

78

9. Early pension People eligible for early retirementreceive their pensions transferred fromthe licensed private funds to the NationalSocial Security Institute. The compul-sory supplementary professional schemesare fully funded. The insurance condi-tions are contracted between the insuredpersons and the licensed private pensioncompanies.

Temporarily reduced early pension(předčasný starobní důchod prvníhotypu):Available two years prior to the normalretirement age provided that the insuredperson: • has accumulated 25 years of insurance

and has been registered with a LabourOffice as a job applicant for at least 180days and has been within 2 years ofreaching normal retirement age.

• has accumulated 25 years of insuranceand has been in receipt of a partial inva-lidity pension and has been within 2years of reaching normal retirementage.

• has accumulated 25 years of insuranceand has been in receipt of a full invalid-ity pension for at least 5 years and enti-tlement to invalidity pension hasexpired within 5 years of reaching nor-mal retirement age.

The pension is reduced by 1.3% the cal-culation basis for every (even incomplete)period of 90 days prior to normal retire-ment age but pension is fully restoredupon reaching normal retirement age.

Permanently reduced early pension(předčasný starobní důchod druhéhotypu):Available up to three years prior to thenormal retirement age; the actual date ofretirement is left to the claimant's discre-tion. The claimant must have an insur-ance record of at least 25 years. The pension is reduced by 0.9% for every(even incomplete) 90 day period preced-ing normal retirement age. This reductionis permanent and so continues after therecipient reaches normal retirement age.

Early Retirement Pension:available up to 3 years before the legalretirement age provided at least 15 yearsof pensionable service or accumulationperiod acquired. The amount of pensioncalculated on the basis of pension formulais permanently reduced by 0.4% for everymonth of earlier retirement.Old Age Pension Under Favourable Con-ditions:No reduction in pension amount, in caseof pensions paid under State PensionInsurance Act.Increase of the value of a year of pension-able service by 3.1% (21.9% in case ofminers) for each year, which gave entitle-ment to old age pension on favourableconditions, in case of pensions paid underOld Age Pensions Under FavourableConditions Act.Superannuated Pension:Reduction of the value of a year of pen-sionable service by 9.6%. Upon attainingthe general pensionable age, the personmay switch to the general old age pen-sion.

First pillaEarly nyugdíj): activities h• after 10

activitieage,

• after eawomen)retireme

Pre-retiremnyugdíj): temploymeployment.ment amoPension employeesof 5 years The costsyears are rby the emuted by tDirectoratSecond pil


Table VI

179

pecial scheme. 9. Early pension

Slovenia

Old-Age

No special scheme. No reduction. No information available. No special scheme. No s


Table VI Old-Age

1

r: Any person who has accrued years of service time, and, afterhe age of 62, acquires addi-ice time of at least 365 calendarut claiming a pension, receives

increase. The old-age pension equal to 0.3% of the old age orelated disability pension forays of additional service time.ension may exceed the averagearnings on the basis of which pension is calculated.lar: None.

Unlimited deferment. Working beyondpensionable age is reflected in the pen-sion calculation formula, see "G" abovein "Calculation method or Pension For-mula".

Hungary Latvia

80

10. Deferment Additional periods of employment arereflected in the normal calculation proc-ess.

For every 90 days of economic activityduring which the claim for an old-agepension is postponed, an increase of 1.5%of the calculation basis is provided.

Deferred Old Age Pension (edasilükatudvanaduspension):The granting of old age pension can bedeferred over the legal retirement ageindefinitely. The amount of pension cal-culated on the basis of pension formula isincreased by 0.9% for every month ofdeferred retirement.

First pillaat least 38reaching ttional servdays withoa pension increase isaccident-reach 30 dThe final pmonthly ethe old ageSecond pil


Table VI

181

ination of employment or self-loyment is the condition for the enti-ent to old –age (and survivios) pen- (with some exceptions).

e insured person fulfils the qualifyingod of 40 working years for men andworking years for women beforehing full retirement age of 63 (men)61 (women) the percentage for the

ulation of the pension shall beeased: years of service Value of each

specific yearWomen 39th 3%

d 40th 2,6%41st 2,2%42nd 1,8%

43rd and each consecutiveyear 1,5%

e insured person retires before age 63n) and 61 (women) pension iseased for each month of retirementre the age 63/61 and in case of retire-t after 63/61 increased for eachth with a % set by the law.

10. Deferment

Slovenia

Old-Age

If a person decides to retire later than offi-cial retirement age, the pension is calcu-lated according to the personal data at thetime of factial retirement and thenincreased by 8% for each full year ofdelayed retirement, but no more than for 5years (that means not more than by 40%).This percentage may be changed by adecision of the State Social InsuranceCouncil.

No special scheme. When the insured person works after hisage of retirement:• for the first 5 years: 1% for each year;• for the following years: 0,6% for each

year.

Full pension:6% of reference earnings for each addi-tional 360 calendar days of employment(or 1,5% for 90 days) to maximum pen-sion.

Pension for years of service: 4% per year for each year between 21stand 25th year of service and 5% for eachadditional year after that to a maximum of75%.

Termemptlemsion

If thperi38 reacand calcincrFull

Men41st42n43rd44th45th

If th(medecrbefomenmon


Table VI Old-Age

1

adjustment means the adjust-e wages and income earned inyear prior to retirement, cur-ore 1997, to the amount of wages in the second year pre-tirement, currently 1998. Thetion factors required for valuet are defined on the basis of an the national net average wages. The appendix of the govern-ee, issued for execution, con-ultiplication factors for value

t.

se of the amount of the old-ageas set before January 1st, 2002. to the general rule, the govern-liged, every year in January, tohe pensions. The rate of theent is equal to the average of planned consumer’s price andd national net increasement ofncome. (In other words thislf of the sum of yearly planneds price and the plannednet increasement of averageccording to the Article 62 ofXXI of 1997 on Social Insur-

ion the pensions set before Jan- 2002 will increase 9,7% in02.

Annual adjustment on the basis ofchanges in the level of prices and nationalaverage social insurance contributionsearnings. Adjustment rate depends on thepension amount. Adjustment does notapply to pensions exceeding the amountof state social security benefit (30 LVLper month) 5 times.

r:ple who do not have twenty

ervice, but have gained at leastf service period, and reach theirtirement age after 30 June 1993 1 January 2009. Old-age par-n can also be established for reached the retirement age

ecember 1990 but before 1 Julyyears of age in the case of

d 60 years of age in the case ofhad gained at least 10 years offore 1 July 1993.lar: None.

No provisions.

Hungary Latvia

82

Adjustment Annual adjustment upon decision of theSupervisory Board of the National SocialSecurity Institute, depending on the pre-ceding year's growth in revenues to com-pulsory insurance funds and theConsumer Price Index.

• if the overall retail price index increasesby 5%, the government must increasepensions by a minimum of 70% of theprice increase.

• if in any calendar year the pensions areincreased only according to the priceindex (or are not increased at all), in thefollowing calendar year the averagepaid pension must be increased by aminimum of 70% of the price index andat least one third of the average realwage growth for those calendar years inwhich the wage growth index was nottaken into account.

• pensions may be adjusted by a govern-ment decree, so that the legislativeprocess is accelerated and the amountof pension continually reflects develop-ment of prices and wages. The thresh-olds for the 'Personal Assessment Base'are also adjusted regularly so that therelationship between existing andnewly granted pensions and betweenpensions and earnings is maintained.

Pensions are indexed annually on 1 April.The index depends in equal shares on theincrease of consumer prices and theincrease of social tax revenues.

The valuement of ththe third rently befincome orceding remultiplicaadjustmenincrease insince 1988ment decrtains the madjustmen

The increapension wAccordingment is obincrease tincreasemthe yearlythe planneaverage imeans: haconsumer’national income) Athe Act LXance Pensuary 1 ofJanuary 20

Partial pension No special scheme. No special scheme. No special scheme. First pillaThose peoyears of s15 years orelevant reand beforetial pensiothose whoafter 31 D1993 (55 women anmen) and service beSecond pil


Table VI

183

sions are adjusted in accordance withstical data on monthly growth ofage national salary of employed per- and at least with the rate of growthasic costs of living. Pensions arested in February and September.

Adjustment

insured person who has fulfilled theitions for entitlement to old-age pen-

may acquire the right to partial pen- if he/she is employed on a half-times. Partial pension is equal to half theage pension to which he/she would been entitled, had he/she retiredpletely.

Partial pension

Slovenia

Old-Age

Basic part of pension is increased upondecision of Government. Supplementarypart of pension is adjusted according toquarterly national average insured income"D" (see "calculation method or pensionformula").

Automatic adjustment based on theannual consumer price index and annualnational average wage index. Averagepensions must be increased by at least anyrise in the consumer price index plus 15%of the difference between the nationalaverage wage index and the consumerprice index established for the year inquestion if the wage index is lower thanthe price index.

See above, Chapter VI “Invalidity –Adjustment”.

Benefits adjusted whenever the cost ofliving increases by 10% or the averagemonthly wages increase by 5% but notearlier than 3 months after the last adjust-ment. • For the benefits acknowledged in the

year 2000 the monthly benefit increasedby 81,4% sum plus 1010 SKK. For thebenefits acknowledged before the year2000 (and thus already adjusted in pre-vious years) the monthly benefit in theyear 2000 raised by 4% plus 167 SKK.

• For the benefits acknowledged in theyear 2001 the monthly benefit increasedby 90,5% sum plus 1204 SKK. For thebenefits acknowledged before the year2001 (and thus already adjusted in pre-vious years) the monthly benefit in theyear 2001 raised by 5% plus 228 SKK.

• For the benefits acknowledged in theyear 2002 the monthly benefit increasedby 103,5% sum plus 1240 SKK. For thebenefits acknowledged before the year2002 (and thus already adjusted in pre-vious years) the monthly benefit in theyear 2002 raised by 7%.

Penstatiaversonsof badju

No concept of partial pension. When aperson has acquired only a part of themandatory period, the pension will beproportionally reduced .

No special scheme. Early and partial early pensions are possi-ble

No special scheme. An condsionsionbasiold-havecom


Table VI Old-Age

1

on is payable irrespective ofe pensioner is working or not.

activities are not limited (taxe pension is 0%, whilst any

re taxed according to the gen-e tax rate).

In the period of employment or self-employment the pension is reduced to anamount equal to triple the State SocialSecurity Benefit (3 x 30 LVL per month).Early pensions: accumulation is not pos-sible.

scheme. Pensions granted before 01.01.1996 arenot subject to taxation.Pensions granted or recalculated after01.01.1996 are subject to taxation.

scheme. The annual tax exemption limit is 12 000LVL.

none. (Except working pen-e Chapter I – “Financing.nt injuries and occupational

No special scheme.

Hungary Latvia

84

Accumulation with earnings from work

Earnings are allowed, they are subject togeneral taxation but not charged withsocial insurance contributions (decision#5 of June 29, 2000 of the ConstitutionalCourt).

First two years: pension suspended ifearnings above two times the MinimumSubsistence Amount of the individualconcerned (see Chapter XI "GuaranteeingSufficient Resources").

After two years: no limit (any earningsallowed).

Old Age Pension: full accumulation withearnings is possible.

Early Retirement Pension: accumulationwith earnings is not possible.

Old Age Pension Under Favourable Con-ditions: accumulation with earnings is notpossible if the pensioner continues towork in occupation which gave entitle-ment to old age pension on favourableconditions; otherwise accumulation withearnings is possible.

Superannuated Pension: accumulationwith earnings is not possible if the pen-sioner continues to work in occupation,which gave entitlement to superannuatedpension; otherwise accumulation withearnings is possible.

The pensiwhether thWorking rate for thearnings aeral incom

Taxation and social contributions1. Taxation of pension benefits

Not applicable. Pensions are not subject to taxation. Subject to taxation No special

2. Limit of income for tax relief or tax reduction

Not applicable. Pension amount exceeding 144,000 CZKper year is liable to taxation.

Pensions less than 3 times the non-taxableminimum (EEK 36000 a year, i.e. EEK3000 a month), which is the majority ofcases, are not subject to taxation.

No special

3. Social security contributions from pension

No special scheme. No special scheme. No special scheme. Basically, sioner. SeEmploymediseases”)


Table VI

185

ings from work attained before theof 63 (men) and 61 (women) are in aentage set by the law (from 5% to) deducted from pension.

Accumulation with earnings from work

sions are subject to taxation.ns-tested supplementary allowance is

subject to taxation.

Taxation and socialcontributions1. Taxation of pension benefits

Chapter III "Sickness-Cash Benefits-tion and contribution".

2. Limit of income for tax relief or tax reduction

compulsory insurance schemes. 3. Social security contributions from pension

Slovenia

Old-Age

Old age pensioners who have an obliga-tory insurance period for a disability pen-sion and after being awarded state socialinsurance old age pension work, are enti-tled to the part of pension dependent tothe amount of insured income they earn • if their insured income is less than 1

minimal wage they are entitled to thefull state social insurance old age pen-sion;

• if their insured income is more than 1minimal wage, but less than 1.5 mini-mal wages, they are entitled to the mainpart of the state social insurance old agepension plus an additional part of thesupplementary part of the pension cal-culated according to the following pro-cedure: (1) 50 percent of the supplementary

part that is less than LTL 100 ; (2) 20 percent of the supplementary

part that is between LTL 100.01 andLTL 200;

(3) 10 percent of the supplementarypart that is between LTL 200.01 andLTL 300.

If the supplementary part of the old agepension is more than LTL 300, the per-son is not entitled to any additionalamount from the supplementary part.

• if their insured income is higher than1.5 minimal wages, they are entitledonly to the main part of the state socialinsurance disability pension.

The state social insurance old age pen-sion is not paid at all if a working pen-sioner does not have the mandatory oldage pension insurance period

Accumulation with earnings.Old age pension is neither suspended norreduced if the pensioner has reached legalretirement age.

Permitted for:• pensions for age limit; • blind people; • the surviving children whose both par-

ents are deceased, during the time theywere in school;

• all persons who have a survivor's pen-sion, if their monthly gross income doesnot exceed half of the average monthlygross salary per economy.

Total accumulation possible if recipient isemployed for a fixed period of less than 1year. Accumulation of earnings from self-employed activity and old-age pension ispossible without restrictions.

Earnage perc31%

Not subject to taxation. Old age pension is subject to taxation. Not subject to taxation. Not subject to taxation. PenMeanot

Not applicable. Income is taxable above a specified mini-mum level (PLN 493,32 per year in 2001and 518,16 PLN per year in 2002).

Not applicable. Not applicable. See Taxa

No special scheme. Deduction of contributions for healthcare.

Heath care contribution. No special scheme. For


Documents

Comparative tables - European Commissionec.europa.eu/employment_social/missceec/table6_en.pdf · 157 Comparative tables Organisation IFinancing II Health care III Sickness – Cash