twitter   facebook   facebook
← Overview Database of Innovative Social Policies in Europe

Premium Years Programme in Public Administration

Country of implementation
Hungary
General short description of the innovation
The Premium Years Programme gives a fair opportunity to older civil servants, public servants and administrative assistants to retire gradually.
Target group
Older Workers
Policy Field
  • pension
Type of Policy
  • public
Duration of the policy
2005-2009
Scope of innovation
  • Scope: temporary
  • Number of intended beneficiaries: 60,000 public servants and 10,000 civil servants
  • Spatial coverage: national
General description of (intended) objectives and strategies
The Premium Years Programme and the so-called ?special workforce? were introduced with a view to improving the e?ciency and cutting the costs of public administration (Act CXXII of 2004 on the Premium Years Programme and the Special Workforce was adopted by Parliament on December 13, 2004 and entered into force on January 1, 2005). The Premium Years Programme gives a fair opportunity to older civil servants, public servants and administrative assistants to retire gradually. For younger public sector workers another scheme, the ?special workforce? scheme was created to facilitate transition from public administration to the private sector. / The Premium Years Programme o?ers the alternative of part-time employ-ment for public sector employees who become redundant as a result of the modernisation of the public administration. Individuals are eligible if they are not more 3 years from retirement and have been employed in the public sector for at least 25 years. Participation is voluntary. Those who decide to join the programme instead of being laid-o?, contin-ue receiving 60% of their monthly salary for 3 years. During this period they might be required to work a maximum of 12 hours per week. The ?premium years? count as employment and end when the person reaches retirement age and becomes eligible for old-age pension. If the individual ?nds employment outside the public sector within 12 months of joining the programme, she/he is entitled to a one-o? payment. / Parliament adopted Act CLXXX of 2005 on Measures to Increase Employment and Promote Flexibility on December 19. The act extended eligibility for the Premium Years Programme in the public sector for those within 5 years of retirement as of January 1, 2006. To further increase the attractiveness of the programme participants receive 70% of their monthly salary. Those who have been employed in the public sector for at least 10 years but are further from retirement age can opt to join the special workforce under similar conditions. The maximum duration of this scheme is one year, during which participants are required to undertake active job search and the use of the employment services in addition to part-time work. / The prolongation of the transition between working life and retirement on the one hand is positive for the employee, but on the other hand it is also favourable for the state budget because the costs of lay-o?s are distributed over a three-year-period and do not incur all at once as would be the case with normal redundancy and severance payments. / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2005_onefile.pdf, p203-204 /
Nature of the innovation-short-term perspective
Gives a fair opportunity to older civil servants, public servants and administrative assistants to retire gradually
Nature of the innovation-long-term perspective
Improving the e?ciency and cutting the costs of public administration
Type of innovation
  • new policy, practice or measure
New outputs
  • leave schemes (fair opportunity to older civil servants, public servants and administrative assistants to retire gradually/ transit to private sector)
Intended target group
Older civil servants, public servants and administrative assistants
Working age population
  • main source of income: paid work
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (local job centers )
  • beneficiaries/users (older civil servants, public servants and administrative assistants)
  • central state (financing)
Clarification of the role of various actors
The local job centre of the Public Employment Service: / ? conducts an in-depth personal interview to explore the participant?s back-ground, expectations and labour market prospects; / ? explores the possibilities and obstacles to employment, / ? o?ers labour market services; / ? provides job brokerage services; / ? gives information on assistance and subsidies, especially training oppor-tunities. / Participants sign a job-seekers agreement with the job centre. Compliance with the agreement and progress are jointly monitored on a regular, but at least monthly basis, and if necessary modi?cations are made. /
Intended output
  • leave schemes (fair opportunity to older civil servants, public servants and administrative assistants to retire gradually/ change to private sector)
Did the innovation have any outcome related to job quantity?
lay-off costs distributed over 3 yearsincreased
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The Premium Years Programme gives a fair opportunity to older civil servants, public servants and administrative assistants to retire gradually. / The prolongation of the transition between working life and retirement on the one hand is positive for the employee, but on the other hand it is also favourable for the state budget because the costs of lay-o?s are distributed over a three-year-period and do not incur all at once as would be the case with normal redundancy and severance payments. /
Share this page: