What changes in early retirement – publico

                 

                         
                     

                 

 
 

Who can apply for early retirement?
The rules of early retirement of workers integrated into the general social security scheme are set out in Decree-Law 187/2007. This law determines who are entitled to advance the retirement age beneficiaries who at 55 have completed 30 years of registration of relevant remuneration for calculating the pension. The law also provides that can apply for early retirement of long-term and specific professions workers unemployed (such as miners or air traffic controllers).

This Decree Law was suspended between 2012 and 2014 (maintaining only early retirement for the long-term unemployed and specific professions).

In 2015, access was partially thawed (Decree-Law 8/2015) by the previous government, covering only those had 60 or more and 40 discounts.

In 2016, Decree-Law 187/2007 returned to be in force and the rules of early retirement have been taken over in its entirety to anyone who at age 55 has 30 discounts.

The value of the allocated pension is reduced?
early retirement is penalized in two ways. The cut of 0.5% (or 6% per year) in the amount of pension for each month for lack of legal age (which is 66 years and two months in 2016) and the sustainability factor a weight that reflects the value of the pension increased expectancy (13.34% in 2016). To compensate for these two courts, the law provides subsidies for longer contributory careers.

The reduction of the value of the pension is permanent?
Yes. The amount of assigned early retirement is what will keep for life.

What changed between 2012 and 2016 for which the penalties are far higher?
have changed several things. The legal retirement age started to be dependent on the increased life expectancy and increased from 65 years to 66 years and two months. So, who anticipates the entry into the reform has a higher penalty (0.5% for each month that lacks to the legal age), because the gap between the age at which retirement and the legal age is higher. According to a document from the Ministry of Labour and Social Security, as the retirement age in 2016 is 66 and two months, will be accounted for over 14 months penalty than in 2012, representing an increase of 7% reduction the amount of the pension.

The sustainability factor was also aggravated because now has as the reference year 2000 instead of 2006. Because of this change, this factor went from 3.92% in 2012 to 13.34% in 2016.

The protection of the longest careers also had changes. The arrangements in force until 2012, for three-year career beyond the 30, there was a reduction of a year of anticipation penalty. Under the new scheme, this reduction would be only four months for each year that the individual has in addition to the 40 on retirement. The great penalizing effect, says official source of the Ministry “has to do with the fact that only be reduced penalty for careers of over 40 years.”

What is the concrete impact of these changes?
A person with 57 years and 30 years of contributory career to reform in January 2016 will receive only 28.6% of the pension he would receive if he had penalties for advancing the retirement age. The simulation of the Ministry of Labor.

What does the government want to change?
Government will regain the rules that were in force last year and that only allowed access to early retirement for workers over 60 years old and 40 career. This part-time will be maintained until the government create an alternative system of early retirement to be less punitive.

Civil servants will also be covered?
No. About discounts for the General Pension Fund will not be affected, although the penalties are the same. The early retirement scheme in the state has never been frozen.

What happens to those who requested early retirement under Decree-Law 187/2007 and is waiting to answer?
Labour Minister assured on Friday that those who have called for reform under the rules that are in place DSDE the beginning of the year (55 years and 30 career) will have their rights guaranteed. People, however, “will be advised to meditate well on the impact of such a request [in the 30 days have to decide],” he added.

The Social Security sends from the beginning of the year, a notification those who ask for early retirement to give account of the value of the pension to which it is entitled. The person will then have 30 days to tell whether you really want to proceed with the request. If there is no response, the case is closed.