Pension bonus, request, fulfilment of public functions for Convergent Social Protection Scheme retirees or Social Security General Scheme pensioners

» Pension bonus

Objective and materialization

» The pension bonus aims to encourage public employees to be voluntarily maintained in the active life, thus improving the pension’s value that would receive, in the case if they retire when they completed the age legally requested for the retirement (66 years)

» For each actual work month, beyond the date in which that age and 15 years of service are completed (calculated under the terms of the Retirement Statute), the pension’s amount to be calculated, when the public employee decides to request the retirement, shall be subsidized on the basis of a monthly rate corresponding to that of the current Social Security: if he/she has already the legal retirement age (66 years), and if has between 15 and 24 years of service the increase in the pension for each extra work month is of 0,33%; if he/she has between 25 and 34 years of service the increase is of 0,5%; if he/she has between 35 and 39 years of service the increase in the pension is of 0,65%; and if he/she has more than 39 years of service the increase in the pension is of 1% for each extra month that he/she works beyond the retirement legal age or beyond the age reduced for bonus due to a longer career. The value of the subsidized pension shall not in any case, be higher than 90% of the last beneficiary’s monthly compensation

» The bonus may be also applied to the early pension provided that the public employee is maintained to perform actual work between the date in which acquires the right to the pension without "penalty", in virtue of the number of years that has in excess, and the date of entry in the Public Employee General Pension Scheme (CGA) of the early retirement request

Note

The retirement pension is only applicable to after the completion of the required age by the retirement general scheme, however there is no room for it when the beneficiary of a special scheme is maintained to work after having attained the age required for this scheme

» Request for benefits

The retirement is requested to CGA by the beneficiary, through the employer entity where he/she fulfils functions, and must, at the same moment, and in the case of the ground being the invalidity, request submission to the CGA Medical Committee, for the purposes of recognition of permanent incapacity, joining the medical documents justifying the request

When the retirement is compulsory – for old-age, in the case of age limit to fulfil public functions; for invalidity, in the case of the employer entity deciding to require the recognition of the incapacity for retirement purposes -, the employer entity shall initiate the process 90 days before the public employee complete the limit age (70 years) or submits himself/herself the request, respectively

» Fulfilment of public functions by CSPS retirees or SSGS pensioners

» The Retirement Statute establishes the principle of the non-fulfilment of public functions by retirees, although also accepts, exceptions to this rule provided that they are duly authorized by the Prime Minister, based on reasons of exceptional public interest, or provided for by special law. The rule is applied to all situations of paid work in Public Administration, either of fulfilment of functions, or of mere service provision

» If the retirement has occurred on the basis of any age anticipation mechanism, a new paid work in PA may never occur

This rule of the Retirement Statute applies to retirees by the social security general scheme

» In the case of authorization of a new fulfilment of functions, the affiliation to the social security general scheme and the payment of the corresponding contributions are compulsory. The Retirement Statute establishes that, in this situation, there is room for the payment of 1/3 of the position or work compensation as well as the total pension or of 1/3 of this one and the total of the position or work compensation, according to which corresponds to the higher amount