Earnings-related pensions accrue from work done

Starting from the beginning of 2005, earnings-related pensions will be calculated using age-related accrual rates of a person’s annual salary or a self-employed person’s annual earned income. Pensions will no longer be calculated separately for each employment contract or period of self-employment.

As of 2005, pensions will also accrue from social benefits such as the daily allowance paid for periods of unemployment and sickness, studies and the care of a child under the age of three. A person under the age of 68, who is working while drawing a pension will also accrue new pension from his or her employment.

With regard to disability pension, the projected pensionable service, i.e. the period from the onset of disability up to the retirement age of 63, may increase accrual of disability pension.

In addition, a life expectancy coefficient based on the year of birth of the person retiring will be used to calculate pensions after 2009.

As regards the accrual of pensions for employment before 2005, the old rules of calculation for each individual year apply and the accrued pensions will be added to the pension that starts accumulating from 2005 on.