INVALIDITY AND OLD-AGE
Calculation of the pension, early retirement, pension bonus, accumulation of work incomes with pension, request
(Social Security General Scheme)

» Calculation of the retirement pension for invalidity or old-age

» The monthly amount of the pension is equal to the result of the reference compensation (RC) by the global rate of the pension formation and by the sustainability factor (SF). That is to say, results from the monthly average, of the total annual compensations of all career, after having been revalued, times the pension formation rate and the number of countable calendar years, up to the limit of 40. The value obtained is, in the case of the old ?age pension, multiplied by the SF applicable, to the date, determined with basis on the average life expectancy at 65 years of age annually disseminated by the Statistics Portugal - Instituto Nacional de Estatística (INE)

» The SF is also applied on the date of the changeover of the invalidity pension to the old-age pension, this means, when the pensioner for invalidity attains 65 years of age. In the case of absolute invalidity the SF shall not be applied, if at 65 years of age the pensioner has received the pension for a period higher than 20 years

» The pension formation annual rate varies between 2% and 2,3% according to the number of calendar years with compensation registration or equivalent situation and the RC amount

» Early retirement

Objective and materialization

Type of old-age retirement that applies one of the normal retirement age flexibility forms, thus enabling its anticipation

Conditions of grant and calculation

» The early retirement may be requested provided that the beneficiary has, at least, 55 years of age and that on the date that completed such age, has 30 years of contributions or more

» The calculation of the pension is based on the aforementioned applicable formula. A reduction factor of 0,5% for each missing month between the date of early retirement and the 66 years of age shall be applied to the amount established. Example: if 12 months (1 year) are missing , the amount determined shall be reduced by 6%; but if 8 months are missing 4% shall be withdrawn

» This "penalty" may, however, be reduced or annuled , if the beneficiary has more than 30 years of contributions on the date in which has completed 55 years of age. For each group of 3 years beyond 30, 12 months to the missing age shall be deducted

» Pension bonus

» The pension bonus aims to encourage public employees to be maintained voluntarily in the active life, improving the pernsion?s value that would receive in the case of being retired, when attained 66 years of age

» For each actual work month, beyond the date in which the age is completed, the pension?s amount to be calculated, when the beneficiary request the retirement, shall be subsidized on the basis of a variable monthly rate according to the number of contribution years. The pension?s value subsidized shall not in any case, be higher than 92% of the best reference compensations (RC) that has served as the basis for calculation

» The bonus may also be applied to the early pension, provided that the beneficiary is maintained to perform actual work between the date in which meets the conditions to require the pension without «penalty», in virtue of the number of contribution years, and the 66 years old

» Accumulation of work incomes with pension

Old-age retirement pension

The accumulation of the retirement pension with work incomes is free , except when resulting from the fulfilment of functions in the form of employment contract in public functions

If the retirement is anticipated, the pensioner shall not perform work or activity, of any kind whatsoever, in the following 3 years in the same company or corporate group

Retirement pension for invalidity

The relative invalidity pension may be accumulated with work incomes, in view of the remaining pensioner?s capacities and bearing in mind his/her rehabilitation and reintegration. The law defines the concrete conditions of that accumulation

The absolute invalidity pension shall not be accumulated with work incomes

» Request for benefits

The retirement shall be requested by the benerficiary to the National Pension Centre