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Temporary modification of the old-age pension for p articular long-term contributors to the pension fund
Country of implementation
General short description of the innovation
Temporary modification of the old-age pension for particular long-term contributors to the statutory pension for limited cohorts. People born before January 1953 are able to retire at the age of 63 without any actuarial reductions if they have fulfilled a contribution period of at least 45 years. For people born between 1953 and 1963 this age-threshold will be increased in bimonthly steps. Those born in 1964 and later are able to retire at the age of 65 without any actuarial deductions in case that they have fulfilled the minimum contribution period of 45 years.
Type of Policy
Duration of the policy
2014 to 2026
Scope of innovation
- Scope: It is a temporary innovation focusing on a rather small group of older employees with very long employment histories.
- Budgets: no particular budget
- Number of intended beneficiaries: Not applicable
- Spatial coverage: national
General description of (intended) objectives and strategies
Rewarding older people who had started their continuous employment already in their early years and thus have a very long employment history.
Nature of the innovation-short-term perspective
The innovation has a clear short term perspective by only focusing on the age cohorts born before 1953 (possible to retire at the age of 63 without any actuarial deductions) or rather between 1954 and 1963 (possible to retire at the age of 63 and 2 months (1953), ..., 64 and 10 / months (1963) without any actuarial deductions.
Nature of the innovation-long-term perspective
The innovation is no radical change from a long term perspective. However, the signal effect emanating from this innovation might be potentially harmful to the overall political objection to abolish early retirement and to exceed working lives.
Type of ideal-typical strategy for the innovation
- typical strategy for the innovation (optional; according to Obinger)-dualisation
Type of innovation
- retrenchment or expansion of an existing/earlier policy
- benefit duration (The time of drawing a pension is extended for a limited group of core employees )
- benefit eligibility (Core workers with very long employment histories (at least 45 years) are eligible for this old-age pension at the age of 63 years. )
Intended target group
Core workers with very long employment histories.
Working age population
- employment situation (please specify: e.g. typical work/atypical/unemployed) (Continuous employment )
- main source of income: paid work
Actors involved in policy-making/implementation and/or evaluation
- making/implementation and/or evaluation-central state
- making/implementation and/or evaluation-employees (organised or individual) (legislation partly influenced by trade union interests. )
- benefit duration (The time of drawing a pension is to be extended up to 2 years for a limited group of core employees )
- benefit eligibility (Rewarding core workers with very long employment histories or rather rewarding the efforts they have done during their working lives )
Did the innovation have any outcome related to job quantity?
Might have negative impact on the activity rate of older people Might have negative impact on the employment rate of older people Might increase labour costs because of higher transaction costs or higher costs to retain the respective employees (limited) Might increase demand for skilled l abour (limited)Might have negative impact on the labour force participation rate of older people