Invalidity: Benefits (I) a), 2007

Transcription

1 Austria For persons who have not yet completed the age of 50 on 1 January 2005: Pension accounts systems for insurance periods since 1 January 2005 with the annual statement of the acquired pension entitlement. Calculation basis: average earned income of the calendar year up to the upper limit of the contribution assessment ceiling. The percentage of 1.78% of this amount is credited to the pension account per calendar year. If necessary, fictitious insurance months will be added to reach the age of 60. The pension amount is determined in accordance with a calculation formula on the basis of the sum made up of the insurance months and the reckonable months. The benefit is reduced by 4.2%, 15% at most, for each year which the pension has been claimed prior to the regular pension age. The pro-rata-temporis method is used to calculate partial pensions both in accordance with the new and the old legislation (fictitious application of both the new and the old provisions to the insurance life as a whole if there are insurance periods before 1 January 2005). The pension is made up of the sum of the partial pensions. For persons who have completed the age of 50 on 1 January 2005: The legislation as of 31 December 2004 shall continue to apply: In principle also 1.78% of the assessment basis and reckonable months up to the age of 60 (both finally as of 2009 after the transitional provisions have expired; initial values: 2% and 57 years of age), but different calculation formula. Pensions granted as of 1 January 2004 may only be at most 5% lower than a comparable pension granted under the legislation in force until 31 December This value will have been gradually increased to 10% by The pension is paid 14 times per year. Belgium Bulgaria Normal allowance: 65% of the lost earnings (subject to ceiling) if there are dependants, 50% if single without dependants, 40% if cohabiting person without dependants. Particular cases: The recipient, single or co-habitant without dependants, is entitled to a rate of 65% when it is acknowledged that he requires the assistance of a third party in order to perform the basic activities of daily living. The amount of the general-sickness invalidity pension is determined by multiplying the income on the basis of which the pension is calculated by the total sum of 1% for each year of contributory service and the relevant proportionate part of the percentage for the months of contributory service. The time counting as contributory service and the relevant proportionate part of the percentage for the months shall be multiplied by the following coefficient: Legal situation until 31 December 2004: Calculation base is the average of the (adjusted) earned income of the best 18 insurance years. This period will be raised by 12 months per calendar year, so that in 2028 the income of the best 40 insurance years will be considered. The calculation method for the reevaluation of the calculation base for past years is rather complicated and involves the evolution of the consumer price index, which leads to less favourable results than those ascertained since The income is only considered up to the upper limit of the contribution assessment ceiling of monthly EUR 3,840. Because of the differences between the revaluations of the contribution assessment basis of the past years and the annual setting of the contribution assessment ceiling, the highest is EUR 3, Legislation as of 1 January 2005: Pension account system with annual statement of the acquired pension amount. The calculation is based on the earnings from employment during the calendar year up to a contribution ceiling. The re-evaluation for past periods is calculated according to the evolution of wages. Invalidity benefit is calculated on the basis of lost daily earnings. Ceiling is set at EUR for invalidities occurred before and at EUR for invalidities occurred after "Calculation basis" is determined by multiplying the national average monthly contributory income over the 12 calendar months before the month of granting the pension by the individual coefficient of the claimant. The individual coefficient is determined using: Since 1 January 2005: Contribution periods for which publicly funded contributions are paid (set pension of EUR 1,350 each): Child-raising periods (maximum of 4 years per child, 5 years for multiple birth). Periods of military or war service and assimilated periods (e.g. periods of civil service). Periods in which maternity benefit is re received (periods of maternity leave). Periods in which unemployment benefit or sickness benefits are received. With regard to insurance periods acquired prior to 1 January 2005 the above mentioned periods are credited as non contributory assimilated periods as well as for persons who had already completed the age of 50 on 1 January 2005 (unlimited). A set of EUR applies to child-raising periods. By 2028 this amount will have been gradually increased to 150% of the reference value (EUR in 2007). No credited non-contributory periods. Where by the date of the invalidity the insured person is below pensionable age the difference between his age and the pensionable age is treated as periods of insurance. When determining the amount of the pension these credited years of insurance are multiplied by a coefficient as follows: Page 1 of 13

2 Bulgaria (cont.) Cyprus Persons with working capacity reduced over 90%: 0.9; persons with working capacity reduced between 71% and 90%: 0.7; persons with working capacity reduced between 50% and 70.99%: 0.5. Total invalidity: Basic Pension: 60% of the average lower part of insurable earnings, increased by 1/3, 1/6 and 1/6 for the first, second and third dependant respectively. In case of married female beneficiary the increase for her dependant children in any case is equal to the 1/6th of the basic pension for each child (maximum number of dependant children: two). Supplementary Pension: 1.5% of the total amount of paid and credited insurable earnings in the upper part of insurable earnings over claimant's whole career plus the credited insurable earnings in the upper part between the date of invalidity and the age of 63, converted into a weekly amount by dividing by 52. Credited insurable earnings: If the insured person becomes incapacitated for work or dies before reaching the age of 63 the time between the date of incapacity or death and the age of 63, is deemed to be a period of insurance. The earnings to be credited for such a period are based on the average insurable earnings of the person concerned in the upper band for the last five years preceding the date of death or incapacity or since 6/10/80 up to the week in which the death or the incapacity occurred. If a person has not completed five years of insurance, the average is calculated on the actual number of years. Partial invalidity: 50% to 66.65% reduced capacity: 60% total invalidity pension % to 75% reduced capacity: 75% total invalidity pension. 76% to 99% reduced capacity: 85% total invalidity pension. Pensions for total invalidity as well as partial invalidity are paid for 13 months a year. the ratio between the average monthly contributory income of the claimant over 3 consecutive years chosen by the claimant from the 15 years preceding December and the national average monthly salary for the same period, the ratio between the average monthly contributory income of the claimant for the total period after December and the national average monthly salary for the same period. The individual coefficient is determined by multiplying each of the ratios above by the number of months for which it has been calculated and dividing the sum of the products obtained by the total number of month included in the two periods. Average earnings since 7 January 1957 or 5 October 1964 until the date of incapacity or whether have reached the age of 16 after the 5 th October 1964, on the first day of the year in which have reached that age. Group I: 0.9 Group II: 0.7 Group III: 0.5 Periods of: unemployment, incapacity, maternity, invalidity, military service, education, parental leave, child credits of up to 156 weeks per child granted to women entitled to a pension after , who failed to make contributions because they were raising children aged up to 12 years old, prospective credits given from the date of invalidity or death till the age of 63 in order to increase the supplementary part of the pension, and special credits for the period of up to Page 2 of 13

3 Czech Republic The pension consists of two elements: Basic Amount: Flat rate CZK 1,570 (EUR 57) per month. Percentage Amount: Earnings-related element calculated from the Personal Assessment Base and the number of years of insurance. Formula differs according to the type of pension: Full Invalidity Pension: 1.5% of the Personal Assessment Base per year of insurance, no maximum, Partial Invalidity Pension: 0.75% of the Personal Assessment Base per year of insurance, no maximum. Person Disabled from Youth: the percentage element is 45% of the annual general assessment base calculated using the national average monthly wage after the same reductions as applied to the Personal Assessment Base for the year preceding the grant of the pension. This formula is also used for those who have at least 15 years of insurance (excluding credited insurance periods) whose pension would otherwise be lower. Personal Assessment Base: Originally based on the average gross earnings over the ten years preceding retirement (1996). This period shall be extended by one year every year until it reaches a total of 30 calendar years. Currently this period covers all earnings since 1985; all earnings are indexed in relation to the average wage; not all earnings are incorporated in the Personal Assessment Base, gross monthly earnings are taken into account as follows: Up to CZK 9,600 (EUR 349): 100% incorporation, from CZK 9,600 (EUR 349) to CZK 23,300 (EUR 847): 30% incorporation, over CZK 23,300 (EUR 847): 10% incorporation. Substitute insurance periods are credited to: Full-time students at secondary school or university, job seekers registered at a Labour Office ( max 3.5 years), persons with reduced working capacity undergoing employment training, persons on military or civilian service, persons caring for child up to the age of 4 years (18 years if child suffers from a longterm severe disability that requires special care), persons caring for a close relative who is incapacitated, recipients of Full Invalidity Pension who are of old-age pensionable age. Denmark Pension rights are calculated according to periods of residence between the ages of 15 and 65. Pensions since : Disability pension: If income does not exceed a certain level, DKK 177,636 (EUR 23,823) per year for persons living alone and DKK 150,984 (EUR 20,248) for married or cohabiting pensioners. Until : Pension according to incapacity level: At least 50% and/or social reasons: disability pension = basic amount + pension supplement + (if applicable) pre-retirement amount + extra pension amount. 67 to 99%: medium disability pension = basic amount + invalidity amount + pension supplement. 100%: maximum disability pension = basic amount + invalidity amount + incapacity for work amount + pension supplement. Basic amount: DKK 59,424 (EUR 7,969) per year, if the income is not above a certain level. Invalidity amount: DKK 28,224 (EUR 3,785) per year. Incapacity for work amount: DKK 39,900 (EUR 5,351) per year. Pension supplement: DKK 27,936 (EUR 3,746) per year for married or cohabiting pensioners and DKK 59,820 (EUR 8,022) per year for single pensioners. The supplement is reduced if the income of the pensioner and his/her spouse exceeds certain levels. Not applicable. Benefits are not dependent on previous earnings. No credited periods. Page 3 of 13

4 Denmark (cont.) Estonia Finland Pre-retirement amount: DKK 15,120 (EUR 2,028) per year. Extra pension amount: DKK 26,896 (EUR 3,607) or DKK 13,776 (EUR 1,847) if entitled to the pre-retirement pension. Calculation basis: represented by the higher of the 2 following amounts: Old-age Pension calculated on the basis of years of pensionable service and pension insurance coefficient of the applicant or old-age pension for a person with 30 years of pensionable service. The amount of the Pension for Incapacity for Work is the percentage of the corresponding to the loss of capacity for work, but not less than the National Pension Rate of EEK 1,269 (EUR 81) per month. National pension: Disability pension: Full amount between EUR and EUR according to marital status and municipality. A full pension if resident of Finland, 80% of time after age 16 and before pension starts. Otherwise pension is adjusted to the length of residence. Reduced by 50% of the amount of the Statutory earnings-related pension and other Finnish and foreign pensions when annual total exceeds EUR 577. Statutory earnings-related pension: Disability pension: Accrued pension amount increased with accrual for projected pensionable service up to retirement age (provided that the person has earnings at least EUR 13, during 10 years preceding the year of contingency). Age-dependent accrual rate on the annual earnings: 1.5% between 18 52, 1.9% between % between years. Accrual rates for projected service up to retirement age (63) if disability occurs during employment: 1.5% until age 50 and 1.3% between ages The for projected years are the earnings during the five years preceding the contingency. For pensioners who are in employment, the accrual rate is 1.5% of the earnings. The accrual rate for unpaid periods is 1.5%. Partial disability pension: 50% of the full disability pension. Years of pensionable service acquired before Registered Social Tax payments after National pension: Not applicable. Statutory earnings-related pension: Pension accrues on the basis of the annual earnings. No ceiling for earnings. For projected years the calculation basis is earnings during the five previous years before the contingency. Pension accrual for unpaid periods (e.g. periods of earnings-related maternity-, paternity- and parent's allowance, days with earnings-related unemployment allowance, job alternation leave, days with sickness allowance, compensations for loss of income as paid from workers' compensation and motor liability insurance, other periods with earnings based daily allowances). The accrual rate for these periods is based on the earnings that are basis of the benefits. For minimum benefits as well as for studies and child homecare a fixed monthly amount is used as earnings base (EUR in 2007). When calculating new beginning pensions, the salaries and earnings from self-employment for the entire working career are adjusted by a wage coefficient to the level of the year when the pension started. The weighting of changes in the price level is 20% and that of changes in the wage level 80%. Credited periods up to , time spent: serving in the armed forces of Estonia or any period equal thereto, undergoing full-time study, receiving unemployment benefit or participating in labour market training, raising a child for at least up to 8 years of age, temporarily incapacitated for work, etc. Starting from the State pays Social Tax for some categories of non-active persons. Statutory earnings-related pension: Periods of receipt of child homecare allowance (until the child reaches the age of 3) and periods of studies (with a degree or qualification) to a maximum of five years. Page 4 of 13

5 France General scheme for employees: Group 1 (medically still able to work): 30% of the average annual earnings for the best 10 years of insurance prior to interruption of work (or, when applicable, a shorter period). Group 2 (medically unable to work): 50% of the average annual earnings for the best 10 years of insurance prior to interruption of work (or, when applicable, a shorter period). Group 3 (those requiring help from another person): Group 2 pension + 40% supplement. Germany Partial: PEP x RA (0.5) x AR. Total incapacity: PEP x RA (1,0) x AR PEP = Personal Remuneration Points: The sum of remuneration points results from the insured earnings for each year divided by the national average of earnings for the same year and the value of credited noncontributory periods, multiplied with the access factor. The access factor follows the age of the insured at the commencement of pension payments and effects reductions of the amounts of early pensions; however a maximum of 10.8% at the commencement of an incapacity pension prior to the completion of the age of 63. RA = Factor of pension type: Represents the targeted level for each pension type in relation to the old-age pension. AR = Current pension value: Corresponds to the monthly pension paid to an average earner for each contribution year. It is adjusted annually in accordance with the development of wages and salaries. The actual pension value amounts to EUR in the old Länder and EUR in the new Länder. Greece Persons insured before : Percentage of the fictive wage taken as a reference varies between 70% and 30% in inverse relationship to earnings. The amount of the pension varies according to the degree of invalidity: Severe invalidity: full pension; Invalidity of 50%: pension reduced by 50%; Invalidity of 67%: pension reduced by 25%. In case of total invalidity, a pension supplement is paid for care provided by a third person. The supplement cannot exceed EUR per month. Persons insured since : The level of the pension varies according to the number of years insured. Each year corresponds to 2% of pensionable income. For those between 65 and 67 years, each insurance year beyond 35 years corresponds to 3%. The amount of the pension varies according to the degree of invalidity: General scheme for employees: Annual average salary of the 10 best insurance years limited to a ceiling or, when applicable, of a shorter period. Salaries taken into account are adjusted. Insured employment income (up to contribution ceiling) during the entire duration of the insurance. The monthly contribution ceiling for 2007 is: West: EUR 5,250 East: EUR 4,550. Periods of child-raising during the first 36 calendar months after the month of birth (12 calendar months for births before 1992) are considered as periods of contributions based on average earnings. Persons insured before : Wage assumed for each of 28 insurance categories, corresponding to average gross earnings in the 5 years before retirement. From 1 January 2005, the insured person may choose as the five best during the last ten years before retirement. Persons insured since : The wages of the last 5 years are taken into account for calculating the pension. General scheme for employees : Periods during which daily benefits are granted for sickness, maternity, employment accidents, or a pension for permanent incapacity of over 66.66%, each day of a course in a vocational rehabilitation establishment. The periods are taken into account when pension is calculated only if the salary received during the course of a calendar year is sufficient to validate at least one quarter of insurance. Accounted periods: Periods of sickness, rehabilitation, unemployment, receipt of pensions, studies or higher education over 17 years of age. Supplementary periods: Time between the commencement of the reduction of capacity and the age of 60 of the insured person. Substitute periods: Certain periods before , e.g. times of military war service or of detention due to political reasons. Consideration periods: Periods of child-raising up to the age of 10 years. Periods during which a sickness benefit and an unemployment benefit (up to 200 days for each benefit during the last 10 years preceding retirement), periods of participation in the Resistance during World War II. Also periods of military service (option of redemption of 3 annuities), periods of parental leave to bring up the children (option of redemption for 3.5 months per child). Page 5 of 13

6 Greece (cont.) Hungary Ireland Italy Severe invalidity full pension, Partial invalidity: 50% of the pension, Normal invalidity: 75% of the pension. In case of total invalidity the supplement for attendance corresponds to ¼ of the monthly average of the GNP per capita for 1991 adjusted accordingly each time the civil servants' pensions are increased. Calculation of the pension amount for Class III: insurance period less than 25 years: pension amounts to 37.5% - 63% of the average monthly income of the individual. insurance period 25 or more years: pension calculated according to the Old-age Pension formula. Class II: 5% more than Class III., Class I: 10% more than Class III, but not exceeding 100% of the average monthly income of the individual. Invalidity pension: EUR per week, if aged under 65. EUR per week if aged 65. Invalidity allowance: Earnings up to EUR 40, (ceiling): 2% x n x E: Partial amount up to EUR 53, (ceiling x 1.33): 1.6% x n x E. Partial amount up to EUR 66, (ceiling x 1.66): 1.35% x n x E. Partial amount up to EUR 76, (ceiling x 1.90): 1.1% x n x E. Earnings over EUR 76,157.70: 0.9% x n x E. n = number of years of insurance (max. 40) E = Reference earnings Incapacity pension: Same calculation as invalidity allowance. Persons insured since : The conventional contribution constitutes 33% of the income for each contribution year. Contribution amounts are adjusted yearly, according to the average increase of the GDP within the last five years. The pension is calculated by multiplying contribution amounts by an actuarial coefficient which varies according to age (min. age is 57 years, max. age is 65 years). The minimum coefficient applies for those under 57. The reform awards pension supplements for total incapacity. The reference earning is the average monthly income of the individual which is calculated as for the Old-age pension. If the service period is shorter than the period required for the Old-age pension, the pension has to be calculated on the basis of the average monthly income of the individual during this shorter period. If the service period does not exceed 30 days, the minimum wage has to be taken into account. Not applicable: Flat-rate benefits, independent of previous earnings. Reference earnings ("E"): For those who on had worked 15 years: average earnings during the last 5 years, with ceiling. For those who on had worked <15 years: average earnings over a variable period of between the last 5 and 10 years, with ceiling. For those first employed since , the calculation is based on the total of contributions of the entire working life. National military service, periods of entitlement to pregnancy- confinement benefit, child care fee, sickness benefit, work accident sick pay, periods of higher education, pursued prior to In addition, the whole period of full time higher education shall be taken into consideration for invalidity pension. Contributions are credited for periods of unemployment, illness or maternity and may be taken into account in order to fulfill the contribution conditions in respect of the contribution year prior to a claim. Incapacity pension: As well as actual insurance years, the years between the date of liquidation of the pension and retirement age are also taken into account. Persons insured since : The minimum actuarial coefficient for the age of 57 also applies for those under 57. Page 6 of 13

7 Latvia Category I: P = 0.45 x Vi + (ASi / ASie) x Vi x 0.1 Category II: P = 0.40 x Vi + (ASi / ASie) x Vi x 0.1 P: pension; Vi: reference earnings; ASi: individual insurance record in years; ASie: maximum possible insurance record from the age of 15 until legal retirement age. For disabled persons of category III: the benefit is fixed as the amount of the State Social Security Benefit of LVL 45 (EUR 64) per month. Lithuania Lithuania (cont.) Lost Working Capacity Pension consists of two parts, the basic part and the supplementary part. Basic Part: Amount based on the basic social insurance pension. The following rates are applied for disabled persons who have completed the required obligatory insurance period: % loss of capacity for work: 150% of the basic social insurance pension, 60-70% loss of capacity for work: 100% of the basic pension, 45-55% loss of capacity for work: 50% of the basic pension. Supplementary Part: Only paid to those who have fulfilled the State social insurance period obtained while working under an employment contract. This period is calculated until the date that disability occurs and is added to the number of years remaining before the claimant reaches the pensionable age. If the person does not have the obligatory State social pension insurance period for the Lost Working Capacity Pension, the number of remaining years is proportionately reduced. Having calculated the insurance period in such a manner, the formula for calculation of the Old-age Pension is used. Persons with a reduction in capacity for work of 45% - 55% receive 50% of the pension amount for persons with a reduction in capacity for work by 60% - 70%. Individual's gross average contribution earnings of any consecutive 36-month period chosen from the 5 years preceding entitlement to pension. If employed for less than 36 months during the 5 years prior to pension entitlement, the average earnings shall be calculated according to the actual number of months the claim ant was employed. If unemployed throughout the 5 years prior to pension entitlement the calculation shall be based on 50% of the national average earnings (upon which contributions were paid) of the previous year. Up to 1994: Insured earnings for the period until Since reliable data are missing before 1994, the five most favourable consecutive years from 1984 to 1993 can be chosen. As from 2009 the data prior to 1994 shall be excluded from the calculation base. Since 1994: Insured earnings. The following periods are recognised prior to 1 January 1991, after this period contributions have been made on behalf of certain categories of the population: compulsory military service, studies at institutions of higher education, child care by the mother until the child reached 8 years of age, etc. Periods during which benefits for sickness, maternity, occupational rehabilitation, lost working capacity and unemployment are received. Also, some categories of persons are insured by State means. These periods are taken into account when calculating entitlement to a pension: Care of child under 3 years of age, care of totally disabled person, military conscripts service period, spouses of diplomats while staying abroad, service period of clergymen of all traditional and other religious communities recognised by the State, period during which nuns/monks work in convents/monasteries. Page 7 of 13

8 Luxembourg Malta Netherlands The pension comprises two parts: flat-rate part depending on the number of insurance years of 1/40 per year (max. 40) and an income- (and contributions-) related part: flat-rate pension part: EUR per month for 40 years' insurance; income-related pension part 1.85% of total wage taken into account. For invalidity before age of 55: special flat-rate supplements of 1/40 for each year between commencement of entitlement to pension and age (max. 40 years) and special income-related supplements for years remaining from commencement of entitlement until age 55. The rate of supplement is 1.85% of average salary aimed between age 25 and the year of cessation. Maximum Pension: married persons: MTL (EUR 116) per week, a single person: MTL (EUR 100) per week. The amount paid varies according to the number of contributions paid but not in accordance with the degree of invalidity. When a pensioner is in receipt of a service pension the basic pension is reduced: married persons: MTL (EUR 76) per week, single persons: MTL (EUR 63) per week. A service pension is a pension or other allowance that is payable by or on behalf of a person s employer in respect of past services in Malta or abroad. WAO (previous scheme): Initial benefit: Daily allowance between 14% and 70% of 100/108 of the daily wage depending on the incapacity level. Continuing benefit: For each year that a person is over 15 on the date on which his WAO benefit takes effect, 2% of the difference between his previous wage and the minimum wage is added to the minimum wage. The amount thus obtained is used as the basis in calculating the benefit rate. The benefit percentage depends on the degree of disablement. In addition holiday allowance of 8%, payable in May. WIA (new scheme): IVA: 70% of the last earned wage. WGA: A partially disabled employee will first be entitled to a wage-related benefit if the reference conditions are met. The reference condition means that in the 39 weeks prior to the first day following the end in the 204 weeks waiting period, the individual concerned must have carried out employment for a minimum of 26 weeks. For the income-related pension part, the salary or the professional income are taken into account. Minimum amount liable for contribution: EUR 1, per month. Maximum amount liable for contribution: EUR 7, per month. Flat-rate benefits not related to earnings, but lower rate of benefit is paid to a person in receipt of a service pension. WIA/WAO: Initial benefit: Net earnings. Ceiling: EUR per day. Continuing benefit: Statutory minimum wage. Periods for the rearing of children under the age of 6 years, education/training periods between the age of 18 and 27, periods during which a dependent was cared for, periods exempted from payment of self-employment contributions, etc. Credited contributions in respect of periods of: Sickness, unemployment, injury. Credits are also awarded to exmembers of the Police Force and the Armed Forces, and Voluntary Workers. No credited periods. Page 8 of 13

9 Netherlands (cont.) Poland Amount: If the disabled person does not work: 70% of the last earned wage. If the partially disabled person does work: 70% of the difference between the last earned wage and the income earned from work. After the duration of this benefit or directly if the requirements are not met, the person can apply for a supplementary benefit allowance or income support. Amount: up to 70% of the statutory minimum wage (for those not working) or up to 70% of the previous wage (for those working). Wajong: Daily allowance for incapacity level between: 25-35%: 21.00% of MYW 35-45%: 28.00% of MYW 45-55%: 35.00% of MYW 55-65%: 42.00% of MYW 65-80%: 50.75% of MYW 80% and over: 70.00% of MYW. MYW = the minimum of (youth) wage. Full Invalidity Pension: Determined according to following formula: R = kb x (wpw x os x 1.3% + wpw x on x 0.7% + wpw x oh x 0.7% + 24%) where, kb: "Basic Amount" equal to national average wage minus the social insurance contribution over the previous year; wpw: reference wage coefficient (shows the relation, as a percentage, between the individual's average reference wage for the pension calculation period and the national average wage during that period); os: periods during which contributions have been paid; on: periods during which no contributions have been paid; oh: hypothetical periods: the number of years short of 25 years' insurance between the insured person's age on submitting the claim and the age of sixty. Partial Invalidity Pension: 75% of the amount of the pension for total incapacity (even if person takes substantial wage decrease due to extensive injuries leaving him/her just short of total incapacity). The reference earnings are equal to either the average wage over 10 consecutive years selected from among the last twenty years, or the best 20 years of insurance. Ceiling: 250% of the national average wage. Sickness Allowance payment, parental leave, university study, caring for a dependent person, military service. Page 9 of 13

10 Portugal Romania Invalidity pension: Monthly amount set up by the product of the reference earnings and the constitution rates of pension related to the contribution years: up to 20 contribution years: pension = 2% x N x RE N = number of contribution years RE = reference earnings. more than 20 contribution years: tapering rates varying between 2.3% and 2% are applied to certain RE brackets, which are indexed to the national minimum wage and vary between 1.1 and 8 times or more this wage. For persons insured until , who completed their waiting period, the law lays down that pension is calculated whether according to regulation under decree 329/93, or under current regulation, or even according to the proportional implementation of both in order to be granted the highest amount. The same rules are valid for persons insured before whose pension will be begin between 1 January 2002 and 31 December Calculation method based on a point system. The pension formula is comparable for old age, invalidity, survivor, and employment injuries and occupational diseases functions. Invalidity Pension formula is: IP = AAS*PPV Where IP = Invalidity Pension AAS = Annual Average Score = Σ AS/FCP AS = Annual Score = Σ NP/12 FCP = Full Contribution Period NP = Number of Points (per month) = RE/AGW RE = Reference earnings AGW = Average Gross Wage (realized; per month). PPV = Pension Point Value = RON (EUR 117) Invalidity Pension beneficiary is granted a potential contribution period, which is the difference between the full contribution period and the actual contribution period, achieved until the classification in one invalidity category. It is the difference between the full contribution period and the required contribution period in case the beneficiary has a minimum period of affiliation for entitlement. The Annual Score pertaining to the potential contribution period varies according to the invalidity categories: Invalidity category I 0.75 points (Annual Score) Invalidity category II 0.60 points Invalidity category III 0.40 points. Reference earnings: average monthly wage of all contribution years for a period limited to 40 years. In case of a longer period, the 40 highest wages are taken into account. E/N x 14 E = sum of all earnings N = number of years. Earnings taken into account for calculation are adjusted: If earnings registered until : according to the consumer price index (excluding housing); if earnings registered after : according to the index obtained by weighting 75% of the consumer price index and 25% of the improvement wage index. This one can not exceed the consumer price index (excluding housing), increased by 0.5%. Gross wage and fringe benefits stipulated by laws or collective labour agreements and earned monthly by the beneficiary. Reference period is the contribution period. Periods of sickness, maternity, unemployment, military service, compensation for inherent work risks, periods during which jury service is performed, periods spent caring for the children, periods in the Resistance. Non-contributory periods credited are periods of: Long-term benefit payment: Invalidity Pension, except for Old-Age Pension, Early Retirement Pension, Partial Early Retirement Pension, Survivor Pension, short-term benefit payment: e.g. Temporary Working Incapacity Indemnity, etc., full-time university courses attendance under graduation condition, conscript service or periods served as drafted, mobilized or prisoner of war, other periods, stipulated by special legislation particularly by the old one. Page 10 of 13

11 Slovak Republic Slovenia Spain Invalidity Pension: Incapacity for work higher than 70%: IB = APEP x PPI x CPV Incapacity for work higher than 40% and less than 70 %: IB = APEP x PPI x CPV x II/100 APEP = Average Personal Earnings Point is determined as a proportion of multiplication of personal earnings points achieved during particular calendar years (during decisive period) by the periods of pension insurance. The personal earnings point is determined as a proportion of the gross yearly income of the insured to the average yearly wage in the Slovak economy. The ceiling of APEP is the value of 3, but for 2007 only PPI = Period of Pension Insurance = number of years of insured + years remaining to pensionable age. II = decrease of capacity for work in per cent. CPV = Current Pension Value = 1.25 % of the monthly average wage in the Slovak economy in the year prior to the year of retirement. For 2006 (and calculation of benefits in 2007) the CPV is SKK (EUR 6.76). The percentage of assessment is fixed taking into account the actual pension qualifying period and the added (fictitious) qualifying period for an insured person who did not reach the full pensionable age, which equals 2/3 of the period between the occurrence of invalidity and the date on which the insured person would have attained 58 years of age, and ½ of the period between the date when an insured person would have reached 63 (men) or 61 (women) years of age and the date when the insured person would have reached 58 years. The amount of Invalidity Pension is assessed according to the Pension Rating Basis (PRB) in the same manner as for the Old-age Pension depending upon how and when the invalidity occurred. The amount depends on gender of the person and the age when invalidity occurred (men 35% - 45% PRB, women 38% - 48% PRB). Partial permanent incapacity for the usual occupation: lump sum equal to 24 times monthly used for calculation of sickness. Total permanent incapacity for the usual occupation 55% of calculation basis. Increased by 20% if over 55 and out of work (pension of 75%). Pension may, at request of beneficiary, be redempted by a lump-sum payment equal to 84 times monthly pension (minus 12 months for every year the claimant's age exceeds 54, subject to a minimum of 12 months). Insured person's income from employment during the entire insurance period since Pension Rating Basis (PRB): monthly average of earnings in any consecutive 18 year period of insurance following 1 January 1970 (whichever is the most favourable for the insured person). Calculation of the PRB is based on earnings (net of tax and other contributions) upon which pension contributions have been paid. Calculation basis: quotient resulting from dividing the sum of the contributory bases of the 96 months prior to the month in which the event occurred by 112. The 24 months immediately prior at face value, the others will be updated according to the evolution of the Consumer Price Index. The period between the date when the invalidity occurred and the pensionable age is credited. The period of receiving Maternity Benefit, Parental Allowance or Benefit for Care after a Sick Relative. The period of caring for children up the age of 6 years or caring for a long-term severely disabled child up to the age of 7 years, during which contributions are paid by State. Periods of sickness, maternity, and occupational rehabilitation are credited. 2/3 of the period between the occurrence of invalidity and the date on which the insured person would have attained 58 years of age, and ½ of the period between the date when an insured person would have reached 63 (men) or 61 (women) years of age and the date when the insured person would have reached 58 years. For the acquisition and assessment of rights, 1/4 of the actual insurance period spent in employment or other relations on the basis of which they were compulsory insured is added to the insurance period to the persons with a physical impairment of at least 70% (war invalids, blind and deaf persons ) The first year of parental leave to bring up a child under 3 years. Page 11 of 13

12 Spain (cont.) Sweden United Kingdom Absolute permanent incapacity: 100% of. Severe incapacity: amount payable for absolute permanent incapacity plus 50%. Income-related sickness/activity compensation: The benefit is paid according to the degree of incapacity at four different levels. If the person has full incapacity for work the benefit is paid at 64% of the persons assumed future annual income up to the ceiling SEK 302,250 (EUR 33,492). This income is calculated as an average of the three highest gross annual incomes earned during a framework period, which immediately preceded the year when the disability occurred: 5 years for a person 53 years of age or older, 6 years for a person from 50 to 52 years of age, 7 years for a person from 47 to 49 years of age, 8 years for a person of 46 years of age or younger. Maximum income-related sickness/activity compensation amounts to SEK 16,120 (EUR 1,786) per month. Guaranteed compensation: Full sickness compensation in the form of guaranteed compensation after 40 years of residence amounts to SEK 8,060 (EUR 893) per month. For each year of residence less than 40, the amount is reduced by 1/40. Full activity compensation in the form of guaranteed compensation amounts per month: < 21 years: SEK 7,023 (EUR 778) from 21 to 23: SEK 7,220 (EUR 800) from 23 to 25: SEK 7,388 (EUR 819) from 25 to 27: SEK 7,556 (EUR 837) from 27 to 29: SEK 7,724 (EUR 856) from 29 to 30: SEK 7,892 (EUR 875) The guaranteed compensation is reduced in relation to income-related sickness/activity compensation and is paid according to the degree of incapacity at four different levels. Long-term incapacity benefit (flat rate): GBP (EUR 117). Age addition: GBP (EUR 24) if incapacity began before age 35; GBP 8.25 (EUR 12) if it began between 35 and 44. In case of a non-work-related accident, the calculation basis is the quotient resulting from dividing the contribution bases during a continuous period of 24 months chosen within the 7 previous years by 28. Annual pension ceiling: EUR 32, Income-related sickness/activity compensation: The benefit is based on pensionable incomes, i.e. incomes from gainful employment and incomes from certain other social security schemes, such as compensation for the loss of income due to sickness, unemployment and parental leave. No reference earnings. Income-related sickness/activity compensation: The benefit is not calculated on noncontributory periods. Guaranteed compensation: The benefit is calculated on periods of residence from 16 to 64 years of age until the year when the person reaches the age of 64. Contributions credited for periods of sickness, incapacity, unemployment and, in the case of men, from age 60 to 65 and to people in receipt of carer's allowance. Page 12 of 13

13 Norway Switzerland Temporary disability benefit is calculated in the same way as rehabilitation allowance. Disability pension: In principle the same as for old-age pension. Stipulated future insurance periods and stipulated future pension points will compensate for insufficient insurance and earning periods for those becoming disabled at an early age. 1st pillar (basic scheme): The monthly pension consists of a fraction of the minimum old-age pension (fixed amount) and a fraction of the determining average annual income (variable amount). If the determining average annual income is less than or equal to CHF 39,780 (EUR 24,702), the fixed amount of the pension is equal to CHF 818 (EUR 508) and the variable amount is equal to the determining average annual income multiplied by 13/600. If the determining average annual income is exceeding CHF 39,780 (EUR 24,702), the fixed amount of the pension is equal to CHF 1,149 (EUR 713) and the variable amount is equal to the determining average annual income multiplied by 8/600. 2nd pillar (statutory minimum): Annual pension = [a + b] x t. a = assets acquired by the insured person at the time she/he becomes entitled to the invalidity pension (contributions + interest). b = projected assets up to the age giving entitlement to the old-age pension (without interest). The projected assets are calculated on the basis of the insured salary during the last insurance year by the pension institution. t = conversion rate = 7.1% for men, 7.15% for women. (a) Situation as of 1 January Temporary disability benefit: Income from work in the year before disability occurred or the average of the three years before. The amount of the supplementary pension will depend on the income record of the person as reflected in his series of annually credited pension points. Future pension points are set on this basis for future years up to the calendar year the person will be 66. Those having become disabled before the age of 26 due to a clearly documented serious and permanent illness/injury/deformity are guaranteed stipulated future pension points of at least 3.30 for each year, independent of their income record. Supplementary pension on this basis can be drawn from the age of 20 at the earliest. 1st pillar (basic scheme): The average annual income consists of: Revalued income from paid employment (the contributions of persons without gainful employment are counted as income from paid employment); Bonuses for child-raising and bonuses for caretaking. Income earned by spouses during their years of marriage is shared between them (splitting) when both are entitled to the pension or in the event of divorce. If the insured person is not yet 45 years old when the invalidity occurs, a supplement is added to the average annual earned income. 2nd pillar (statutory minimum): The insured salary (= coordinated salary) is the part of the annual salary between CHF 23,205 (EUR 14,409) and CHF 79,560 (EUR 49,404). Minimum coordinated salary: CHF 3,315 (EUR 2,058). Source: EU Commission, DG 07, MISSOC 2007 ( Years of child care for children under 7, or care for a disabled, sick or elderly person. Minimum pension points of 3.00 are guaranteed for such years. 1st pillar (basic scheme): Bonuses for child-raising: years during which the insured persons exercised parental authority over one or more children under the age of 16; bonuses for care-taking: years during which the insured persons took care of relatives in ascending or descending line, brothers and sisters, helpless and living in the same household. Non-working spouses of insured persons engaged in paid employment and persons working in the company of their spouse without receiving payment in cash are deemed to have paid contributions, provided that their spouse has paid at least double the minimum contribution. The registered partnership is treated as marriage. 2nd pillar (statutory minimum): No non-contributory periods credited or taken into consideration. Page 13 of 13