INVALIDITY AND OLD-AGE
Calculation of the pension and early retirement
(Convergent Social Protection Scheme)

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

Beneficiaries affiliated to the Public Employee General Pension Scheme after 1.9.1993

Calculation according to social security general scheme rules, but falling upon contribution base compensations such as it is defined within the framework of the employees’ social security general scheme

Beneficiaries affiliated to the Public Employee General Pension Scheme until 31.8.1993

Calculation made up of the two parts (P1 more P2) sum, multiplied by the sustainability factor (SF)

The SF only is not applicable to the case of the general absolute invalidity pension, if when the pensioner is 65 years old has received the pension for a period higher than 20 years. Otherwise, the pension shall be altered as from the date in which has attained that age

P1

It corresponds to the length of service calculated until 31.12.2005 and applies the calculation formula set out in the retirement Statute. The relevant compensation is of 89% of that one which corresponds to the last position performed in 2005, updated by application to that compensation of a coefficient corresponding to the accumulated updating percentage of the civil service general scheme careers salary scale 100 step between the year to which relate the compensations and the retirement year. Each year of service shall correspond to 1/40 of that compensation as from 1.1.2013 in total of the time calculated in the two parts. In the case of positions or special functional situations, such as managers, physicians and notaries on exclusive dedication and other situations, the relevant compensation results from the average of the last 3 or 2 years, where appropriate

P2

It corresponds to the contributory period subsequent to 1.1.2006, and it is calculated according to the social security general scheme formula, that is to say, is equal to the result of the reference compensation (RC) for the pension formation global rate (variable between 2% and 2,3% according to the number of years, in total of the two parts, and the RC value) and for the number of subsequent years to 2006. This number of years, added to the P1 time, shall not exceed the maximum limit of 40 years, as from 2013

The RC results from the average of the annual total compensations, after being revalued, corresponding to the calendar years, counting as from 2006, to be divided by the number of years calculated on the basis of number of years of contributions paid (1 year equal to 120 days or more with compensations or equivalent situation registration). If the total number of years subsequent to 2006 is higher than the maximum limit, the years that correspond to the highest compensations, after the revaluing being made are calculated

» Early retirement

Objective and materialization

» Forms of voluntary retirement for old-age that aims to compensate longer contribution careers, enabling anticipation of the "normal" age defined in 66 years

» It is materialized through the lifetime grant of the retirement early pension, paid by Public Employee General Pension Scheme - CGA

Conditions to 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 in which completed it had 30 or more years of service (contributions)

» The calculation of the early pension is based on the formula applicable, according to the date of affiliation to CGA, that is to say, before or after 1.9.93

» The value resulting from the application of one reduction factor, commonly referred to as "penalty", shall be deducted to the amount established that corresponds to 0,5% for each month (monthly rate) that is missing for the established legal age stipulated for the old-age retirement. Example: if 12 months (1 year) are missing , the amount established shall be reduced by 6%; but if 8 months are missing 4% are withdrawn

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

Note

The early retirement is a form of the retirement general scheme, and it is not applied to special schemes that, in themselves already provide the retirement before the normal general age, but without any "penalty"