Austria Belgium Partner: No supplement. Children: EUR 29.07 for each child up to the completion of age 18 or up to the completion of age 27 for children engaged in vocational training or university education, no age limit in case of children with disabilities. As regards the increase of the basic rate for the compensation supplement for spouses living in the same household and for children see "Minimum Pension". A household rate (65%) is allowed if there is a dependent person. As far as the monthly pension or pensions including other income (also of the spouses living in the same households) are below the following amounts, a compensation supplement is due in the amount of the respective difference: Single pensioners: EUR 783.99 per Pensioners living with spouse: EUR 1,175.45 per Increase of the compensation supplement for each child up to the completion of age 18 or of age 27 for children engaged in vocational training or university education, no age limit in case of children with disabilities: EUR 82.16 Minimum for regularly employed: With : EUR 48.30 per day. Without : Single EUR 38.65 per day; Cohabitants EUR 33.14 per day. Minimum for non-regularly employed: With : EUR 37.22/day. Without : EUR 27.91/day. Bulgaria No supplements. The amount of the general-sickness invalidity pension must not be less than: For persons with reduced working capacity/ degree of disability over 90%: 115% of the minimum amount of the contributory old-age pension which is BGN 156.49 (EUR 80); Annual adjustment on 1 January. In 2010 the pensions up to the amount of EUR 2,466 are increased by 1.5%; pensions higher than EUR 2,466 (gross) are increased by a fixed amount of EUR 36.99. Automatic adjustment of allowances by 2% when the Consumer Price Index varies by 1.02 in relation to the preceding index. Rates of allowances are adapted in line with the evolution of the general standard of living by fixing an annual adjustment coefficient or flat-rate charge via benefit grant. The general rule for adjustment of pensions stipulates that the pensions granted before the 31 Dec of the preceding year shall be adjusted annually from 1 July by a decision of the Supervisory Board of the National Social Insurance Institute by a percentage equal to the sum of 50% Regulation allowing taking into account those persons entitled to an invalidity (disability) pension and receiving an activity income superior to the limit of EUR 366.33, under which activity is not subject to social insurance. In this case, the partial pension due is calculated by deducting a certain amount from the full rate pension, fixed in accordance with the different parts of the global income (activity income + pension). Up to a global income of EUR 1,037.20, the disability pension is entirely paid. The parts of the global income corresponding to an additional amount of EUR 518 are reduced by 30, 40, or 50% of the pension, the upper limit being 50% of the full rate pension. This means that the half of the full rate pension with an activity income is maintained. A professional activity during the period of disability may be authorised by the mutual insurance company's medical advisor. The amount of the daily benefit thus allocated may not exceed the daily amount that would be allocated if there were no accumulation. Full accumulation with earnings permitted. Benefits are subject to taxation with the exception of the allowance for assistance of a 3rd party. Pensions are not subject to taxation. Page 1 of 13
Bulgaria (cont.) Cyprus The basic part of the pension is increased to reflect number of. Male beneficiary: his spouse is a dependant if she lives with or has been maintained by him and receives no pension from the Social Insurance Fund. Female beneficiary: her spouse is a dependant if he is unable to support himself, is wholly maintained by her, and receives no pension from the Social Insurance Fund. Dependent children must be under 15 years of age (25 years for unmarried sons in full-time education or national service, 23 for unmarried daughters in fulltime education; or irrespective of age if unmarried and permanently incapable of self-support). For persons with reduced working capacity/ degree of disability between 71% and 90%: 105% of the minimum amount of the contributory old-age pension which is BGN 142.88 (EUR 73); For persons with reduced working capacity/ degree of disability between 50% and 70.99%: 85% of the minimum amount of the contributory old-age pension which is BGN 115.67 (EUR 59). The minimum amount of the contributory old-age pension remained unchanged as compared to the previous year: BGN 136.08 (EUR 70). 85% of the full Basic Pension based upon maximum Basic Insurable Earnings. For a single person the amount of the minimum pension is EUR 82.30 per week (85% x 60% x EUR 162.22), For a person with one dependant the amount is EUR 110.31 per week (85% x 80% x EUR 162.22), For a person with 2 the amount is EUR 124.10 per week (85% x 90% x EUR 162.22) and For a person with 3 the amount is EUR 137.89 per week (85% x 100% x EUR 162.22). In the cases of partial invalidity the respective amounts are also multiplied by the degree of invalidity. of the increase of the contributory income and 50% of the index of the consumer prices during the previous calendar year. For 2010 only, pensions will not be increased according to this rule. The percentage will be determined by the Council of Ministers depending on the implementation of the annual fiscal programme. Basic Insurable Earnings increased every year in line with an annual survey of wages and salaries. Basic Pensions are adjusted at the beginning of each year in accordance with the percentage of revision of the Basic Insurable Earnings. Supplementary Pensions are adjusted the same day, in accordance with the increase of the cost of living index (comparison of the second semesters of the last 2 years). Pensions (Basic and Supplementary Pensions) are also adjusted every July by the increase of the cost of living index (comparison of the 1st semester of that year with the 2nd semester of the previous one), if the latter is at least 1%. This increase is taken into account when determining the increase of the pensions at the beginning of the year. In case of partial invalidity, the period of employment and the amount of the salary are reduced accordingly. Page 2 of 13
Cyprus (cont.) Czech Republic In cases where both parties receive a pension, the increase for dependent children is given to the spouse entitled to the highest amount of increase. Other : Parents or younger brother or sister who are mainly maintained by the insured person. No supplements. Denmark No pension supplement. But pensioners are entitled to a supplement to family benefits. Basic Amount: Flat rate of CZK 2,170 (EUR 83) per Percentage Amount: CZK 770 (EUR 29) per 1/40 of the above mentioned a- mounts. Pensions are regularly adjusted on 1 Jan of each year by at least 100% of the development of the price index and by at least 1/3 of the increase of average real wages. Further adjustments are realised when the price index exceeds 5%. The thresholds for the Personal Assessment Base are also adjusted regularly so that the relationship between existing and newly granted pensions and between pensions and earnings is maintained. The adjustment rate for Social Pensions and other transfer incomes is fixed once a year, on the basis of the evolution of wages. Full Invalidity and Partial Invalidity: No limitations. Accumulation possible, but with benefit reduction. Pensions since 1 Jan 2003: Pensions until 31 Dec 2002: The basic amount, pension supplements, and incapacity for work amount are subject to taxation. Invalidity amount, pre-retirement amount, extra pension amount, invalidity allowance, constant attendance allowance and attendance allowance are not subject to taxation. Pensions less than EEK 3,000 (EUR 192) (in case of working) plus additionally EEK 2,250 (EUR 144) in case of not working are not subject to taxation. Estonia No supplements. 100% of the National Pension Rate: EEK 2,008 (EUR 128) per Pensions are indexed annually on 1 April. The index depends on the increase of consumer prices and the increase of Social Tax revenues (20:80 respectively). No restrictions, full accumulation possible. Page 3 of 13
Finland France Spouse: National pension: No supplement. Statutory earnings-related pension: No supplement. Children: National pension: Child increase EUR 20.37 per month and child under the age of 16. Paid also to pensioners who don t receive national pension. General scheme for employees: No supplements. No statutory minimum pension. National pension guarantees de facto a minimum pension to those with 40 years of residence after the age of 16 before pension starts and with a small pension or with no other pension (reduced if less years). (For disability pension full pension requirements are adapted accordingly). General scheme for employees: for all categories: EUR 3,153.24 per year. Minimum (means tested): EUR 4,520.24 per year for a single person. Minimum supplement for assistance by a 3rd party: EUR 12,349.23 per year. National pension: Annually on the basis of the evolution of the cost-of-living index. Statutory earnings-related pension: Pensions in payment are adjusted annually with the earnings-related pension index at the beginning of January each year. The weighting of changes in the price level is 80% and that of changes in the earnings level 20%. General scheme for employees: Annual adjustment (expected evolution of consumer prices, tobacco excluded). Germany No supplements. No statutory minimum pension. The pensions are annually adjusted on 1 July according to the income development by calculation of the pension on the basis of the valid new current pension value. The current pension value is adjusted in line with the wage development in the previous calendar year (separate for the old and new federal states), with the wage development according to the national accounts being the relevant National pension: If the pensioner takes up work, he is no longer considered as disabled and the pension is withdrawn. The pension can be suspended for 3-24 months if the pensioner finds employment. In the case of individual early retirement pension, same rules apply as for the earnings-related pension. Statutory earnings-related pension: Within certain limits, the pensioner is allowed to work while receiving pension. In the case of disability pension, if earnings are 40% but not 60% of the pensionable salary, the full disability pension is changed to a Partial disability pension. If earnings exceed 60% of the pensionable salary, the pension is withdrawn. General scheme for employees: Suspension of the pension if the pension and the salary received during 2 consecutive quarters are greater than the average quarterly salary for the last calendar year before stopping work prior to invalidity. Pension is reduced if earnings exceed fixed additional earnings ceilings. Payment of pension is suspended if earnings exceed the upper ceiling. In certain cases, a gainful occupation - irrespective of earnings - can affect the continuation of the pension entitlement. Pensions are fully subject to taxation and taxed as other earnings (e.g. wages). However, small pensions are entitled to a special pension deduction. Thus if the income consists of national pension only, no income tax is paid. Disability Allowance for Persons aged 16 and over, Disability Allowance for Pension Recipients and Pensioners' Housing Allowance are not taxed. Invalidity pension: Subject to taxation. Supplement for assistance by a third party: Not subject to taxation. Gradual transition to deferred taxation over a period of 35 years (2005-2040). The "taxable share" of a pension for pensions granted before the end of 2005 amounts to 50%. On this basis the tax-free amount of the pension granted to the pension recipient each year is calculated. Page 4 of 13
Germany (cont.) criterion (without compensation for extra expenses for recipients of unemployment benefit II in subsidised community work). From 2006 the development of insurable income is also taken into consideration, when the relevant wage development is determined for the pension adjustment. Apart from wage development, changes of the pension insurance contribution rate and the increasing share of private old-age-provision (certain part of the income foreseen for private old-age pensions) and the development of the ratio between beneficiaries and employees liable to compulsory insurance (sustainability factor) are taken into consideration. Tax-related changes for employees, however, are not taken into consideration. The gradual increase of certain part of the income foreseen for private old-age pensions in the pension adjustment will be suspended in 2008 and 2009 due to a legal provision. Consequently, in 2009 there is a pension adjustment which is 0.63 percentage points higher. The calculation of the levels of increase of certain part of the income foreseen for private old-age pensions will be made up by the pension adjustment in 2012 and 2013. As a result, the gross pensions were adapted on 1 July 2009 by 2.41% in the old Länder and by 3.38% in the new Länder. The current pension value since 1 July 2009 amounts to EUR 27.20 in the old Länder (West) and EUR 24.13 in the new Länder (East). The taxable share on which the tax-free amount is determinedfor new pensions will be increased each year by 2% until 2020, and from 2021 to 2040 by 1% respectively. Page 5 of 13
Greece Persons insured before 1 Jan 1993: Partner: EUR 49.56 per Children: 1st child: 20% of the pension 2nd child: 15% of the pension 3rd child: 10% of the pension. Persons insured since 1 Jan 1993: Partner: No supplements. Children: 1st child: 8% of the pension 2nd child: 10% of the pension 3rd and any further child: 12% of the pension. Persons insured before 1 Jan 1993: EUR 486.84 per Persons insured since 1 Jan 1993: EUR 495.74 per Hungary No supplements. For pensions determined after 31 Dec 2008: Class I: HUF 30,850 (EUR 114) per Class II: HUF 29,800 (EUR 110) per Class III: HUF 28,500 (EUR 105) per according to the income policy determined annually by the Government. Annual adjustment in January. The basis of the adjustment varies according to the growth in gross domestic product (GDP): GDP growth below 3%: adjustment based on 100% of the predicted increase in consumer prices, or: GDP growth 3% or higher: adjustment based on predicted increase in consumer prices and predicted increase in net average monthly earnings, according to the following ratio: GDP growth 3-4%: 80 consumer prices - 20 net average monthly earnings GDP growth 4-5%: 60-40 resp. GDP growth above 5%: 50-50 resp. 4.1% increase in January 2010. earnings from a professional activity is possible if this activity has been declared towards the competent administration; in case of nondeclaration, the pensioner is prosecuted and asked to reimburse the already paid pension. The payment of the invalidity pension is interrupted when the earnings from the activity exceed the upper admissible limit, in other terms the earnings that a healthy worker can get. After 31 Dec 2007 people entitled to invalidity pension are: Those who are not pursuing any earning activity, or Whose salary or income is at least 30% less than the monthly average of their salary or income in the last 4 months before the damage on health occurred. The entitlement to invalidity pension of any disabled pensioner will cease to exist if the pensioner is no longer disabled or if he/ she has not reached the retirement age limit if his/her average monthly income (on which the pension contribution is based) for 6 successive months exceeds the double of the sum of the invalidity pension and the prevailing minimum wage. Pensions accumulated with earnings are subject to taxation, though the amount of tax on pensions is deducted from the accumulated amount. Page 6 of 13
Ireland Spouse: Aged under 66 years: EUR 143.80 per week. Aged 66 years and over: EUR 206.30 per week. For each child: EUR 29.80 per week. Flat-rate amount, same as maximum. Italy No supplements. Invalidity allowance: The minimum pension amount of EUR 5,992.61 is paid if the annual taxable income of the person concerned is less than double the minimum social pension on 1 Jan each year. (2020: EUR 10,699.78), or than 3 times the social pension, (2010: EUR 16,049.67) if the person is married. Persons insured since 1 Jan 1996: No statutory minimum pension. Latvia No supplements. s are based on the State Social Security Benefit of LVL 45 (EUR 63) per month: Category I:1.6 x State Social Security Benefit, Category II: 1.4 x State Social Security Benefit. The disability pension for category III is fixed at the amount of the State Social Security Benefit. Lithuania Invalidity pensions are normally adjusted annually by legislation. Annual adjustment based on the development of the cost of living according to the following modalities: For the part of the pension up to 5 times the minimum pension (pensione minima): 100%. For the part of the pension exceeding 5 times the minimum pension: 75%. No supplements. No statutory minimum pension. The basic part of a pension and the supplement for years of pension insurance depend on the amount of the basic pension, the supplementary part is adjusted according to the current year's average insured income D. The basic pension and the current year's average insured income are increased upon decision of Government depending on the Government s Program and the budget. For 2010 the average insured income D is reduced from LTL 1,488 earnings not possible. Invalidity pension requires permanent full incapacity. Invalidity allowance: Partial accumulation possible. Incapacity pension: No accumulation possible. Pensions (including supplements for adult and child ) are subject to taxation. Pensions are not adjusted in 2010. Accumulation possible. Pensions granted before 1 Jan 1996 are not subject to taxation. Pensions granted or recalculated after 1 Jan 1996 are subject to taxation. No restrictions, full accumulation is possible. Benefits are not subject to taxation. Page 7 of 13
Luxembourg Malta Netherlands No supplements. Spouse: The married pension rate is payable even if the wife is employed. Children: No supplements. No supplements. No pension can be less than 90% of the reference amount, if the insured has at least 40 years of insurance: therefore, there is a minimum of EUR 1,514.43 per If the insured did not complete the said qualifying period, the minimum pension is reduced by 1/40 for each missing year. Married Person: EUR 88.47 per week. Single Person: EUR 85.78 per week. WIA/WAO: No minimum benefits. Wajong: No minimum pension. If invalidity benefits, together with any unemployment benefits, are lower than the social minimum, a supplement can be claimed under the Supplementary Benefit Act (means tested). Poland No supplements. Total incapacity: PLN 675.10 (EUR 165) per Partial incapacity: PLN 519.30 (EUR 127) per (EUR 431) to LTL 1,170 (EUR 339). The mechanism of automatic indexation of pensions according to the evolution of consumer prices when the index varies by 2.5% in relation to the figure triggering the previous adjustment is suspended; until 2009 fixed adjustments. of pensions to earnings level by special law. The pension is increased yearly by 2/3 of the full cost of living increase awarded to employees (4/5 in the case of a married person). on 1 Jan and 1 July in accordance with the average development of contract-wages. Periodical adjustment on 1 March following the calendar year in which the index of prices of consumer goods and services is at least 105% in comparison to the calendar year of the last adjustment. The income from an activity may be accumulated with the pension up to a ceiling comprising the average of the 5 highest annual wages of the insurance record. The pension is reduced by the amount of income exceeding this ceiling. Invalidity Pension beneficiaries are precluded from employment or self-occupation. WIA/WAO and Wajong: If a beneficiary finds suitable employment the disablement category in which she/he has been classed may change, depending on what he/she earns doing this work. This means that the rate of benefit may be revised. The pension is suspended or reduced if the beneficiary exercises a professional activity and earns more than the following thresholds: Earnings below 70% of the national average wage: no effect on pension; Earnings between 70% and 130% of the national average wage: basic amount of the pension reduced by 24% or by 18% in case of Partial Invalidity Pension Earnings over 130% of the national average wage: pension suspended. Benefits are subject to taxation. Invalidity Pension and Social Pension: Benefits are subject to taxation. Medical Care Supplement and Funeral Grant: Benefits are not subject to taxation. Page 8 of 13
Portugal Spouse: EUR 36.80 per Children: No supplements. Minimum 30% of reference earnings. However, the amount of the pension can not be lower than the following minimum amounts fixed by law: Minimum Relative invalidity: Minimum amount indexed to the indexing reference of social support (EUR 419.22). The percentages vary according to the contribution period: Minimum for pensioners with up to 15 contributions years: 58.04% of the IAS indexing reference per For pensioners with 15 to 20 contributions years: 64.74% of the IAS indexing reference per Minimum for pensioners with 21 to 30 contributions years: 71.44% of the IAS indexing reference per Minimum for pensioners with more than 30 contributions years: 89.30% of the IAS indexing reference per Absolute invalidity: The minimum amount equals to the minimum amount of a relative invalidity pension and an old-age pension with a contribution career of 40 years: In 2008 and 2009 minimum amount corresponding to a contribution career of 15 to 20 years (see above); In 2010 and 2011 minimum amount corresponding to a contribution career of 21 to 30 years (see above); From 2012 minimum amount corresponding to a contribution career of 40 years (see above). Increased once a year taking into account the evolution of the Gross Domestic Product and of the Consumer Price Index (excluding housing) with specific favourable rules for the lowest pensions. Relative invalidity: Accumulation possible up to the following limits: 100% of the reference earnings if these are related to the activity of the beneficiary before the beginning of the invalidity; Regressive variable values between 2 and 1.33 times the reference earnings, according to the number of accumulation years if earnings are related to other activities. Absolute invalidity: No accumulation possible. Invalidity pensions are subject to taxation, but the tax system is different than the one for earnings from work. Page 9 of 13
Romania No supplements for. Slovak Republic RON 350 (EUR 83). Based on the macroeconomic indicators development and the financial resources the state social insurance budget revision laws may readjust the Pension Point Value during the year. Pension Point Value is similar for all pensions: Old-Age Pension, Old-Age Pension with Reduced Standard Retirement Age, Early Retirement Pension, Partial Early Retirement Pension, Invalidity Pension, and Survivor Pension. No supplements. No statutory minimum pension. Annual adjustment (1 Jan) of the current pension value according to the average development of gross earnings (earnings in the third quarter of the previous year compared to the third quarter of the year preceding the previous year). Annual adjustment (1 Jan) of benefits according to the increase of consumer prices and of the average wage. Slovenia No supplements. An insured person who is entitled to invalidity pension is guaranteed the minimum pension in the amount of 35% of the minimum Pension Rating Basis. Pensions are adjusted twice a year (in February and November) in accordance with the development of the average monthly salary. Category III and blind invalidity pensioners: Accumulation possible. Pensioners are allowed to accumulate in the public sector if the net pension is below the projected average gross wage, i.e. RON 1,836 (EUR 435). Pensioners with category I and II invalidity, with the exception of the blind: Accumulation not possible. Accumulation possible. Right to part-time work and Partial Invalidity Pension: An insured person afflicted with invalidity of category III is, if he is no longer capable of working full-time or without occupational rehabilitation entitled to part-time work and partial invalidity pension. Partial invalidity pension is assessed in the percentage, corresponding to the shortening of full working time, from invalidity pension the insured person would be entitled to on the day of occurrence of invalidity (min. 12.5% to max. 80% of the pension). The Invalidity Pension is subject to taxation. Pensions are not subject to taxation. All pensions and cash benefits from invalidity insurance are subject to taxation. Disability Allowance, Assistance and Attendance Allowance and Supplementary Allowance are not subject to taxation. Page 10 of 13
Spain Sweden No pension supplements, but higher amount for the Minimum Pension if there is a dependent spouse. Has not been granted since 1999 according to a change in the law. Monthly amounts (14 payments per year): Total permanent incapacity for the usual occupation: for persons over 65: EUR 587.80 for single beneficiaries. For married beneficiaries: EUR 725.20 or EUR 557.50, according to whether or not the spouse is dependent. Absolute permanent incapacity: for single beneficiaries: EUR 587.80. For married beneficiaries: EUR 725.20 or EUR 557.80, according to whether or not the spouse is dependent. Severe incapacity: for single beneficiaries: EUR 881.70. For married beneficiaries: EUR 1,087.80 or EUR 836.30, according to whether or not the spouse is dependent. No statutory minimum pension. Guaranteed compensation for those who have small or no income-related sickness/activity compensation. Full sickness compensation in the form of guaranteed compensation amounts to: SEK 8,480 (EUR 832) per Full activity compensation in the form of guaranteed pension amounts per month: Under 21 years: SEK 7,420 (EUR 728) From 21 to 23: SEK 7,697 (EUR 745) From 23 to 25: SEK 7,773 (EUR 763) From 25 to 27: SEK 7,950 (EUR 780) From 27 to 29: SEK 8,127 (EUR 797) From 29 to 30: SEK 8,303 (EUR 815) Automatic adjustment at the beginning of each year according to the Consumer Price Index anticipated for the year in question. The rate of adjustment is fixed every year on the basis of the development of prices (price base amount). Permanent incapacity pensions are compatible with earnings, provided the activity is consistent with the pensioner's physical condition and does not imply a change in his/her capacity to work for revision purposes. Accumulation is possible for Assistance Allowance, Car allowance, Care Allowance for Disabled Child and Disability Allowance. Partial permanent or total permanent incapacity for the usual occupation: Benefits are subject to taxation. Absolute permanent incapacity and severe incapacity: Benefits are not subject to taxation. Benefits are subject to taxation except for housing supplement for pensioners, the disability allowance and such parts of the care allowance for disabled child which are supposed to cover special expenses due to the disability. Page 11 of 13
United Kingdom Incapacity benefit: Partner: Increase for spouse aged 60 or over or adult caring for dependent child: Short term IB GBP 41.35 (EUR 46) Long term IB GBP 53.10 (EUR 60) Children: Increase for dependent child (not available for new claims from April 2003): GBP 11.35 (EUR 13) for each child. Employment and Support Allowance: No supplements for Flat-rate benefits, same as maximum. by legislation at least annually in line with movements in the general level of prices. Benefits are adjusted in April. Incapacity benefit and (contributory and income-related) Employment and Support Allowance: Under permitted work rules up to GBP 92.00 (EUR 103) per week Long-term incapacity benefit is taxable (with exceptions for people who were receiving the former Invalidity Benefit when it was abolished in April 1995). Contributory Employment and Support Allowance (ESA) is taxable, income-related ESA is not. Attendance Allowance, Disability Living Allowance and Severe Disablement Allowance are not subject to taxation. Carer's Allowances is taxable, but any Child Dependency Addition is not. Tax may also be payable on Short Term Higher Rate Incapacity Benefit. Norway Temporary disability benefit: Spouse: No supplement. Child supplement: As for disability pensioners. Disability pension: Means-tested spouse supplement of up to 50% of the Basic Amount, i.e. NOK 36,440 (EUR 4,058). The supplement is reduced by 50% of income in excess of 3.3366 times the Basic Amount. A cohabitant, with whom the pensioner has children or formerly has been married to, is treated as a spouse. Child supplement of 40% of the Basic Amount for each dependant child under 18. Means-tested in the same manner as the supplement for a spouse. Temporary disability benefit: Minimum of NOK 143,576 (EUR 17,448), 1.97 times the Basic Amount. Minimum for persons disabled before the age of 26 due to a clearly documented serious and permanent illness/injury/deformity is NOK 177,830 (EUR 21,610) (2.44 times BA). This higher minimum can be drawn from the age of 20 at the earliest. Disability pension: No guaranteed minimum. For a single pensioner who has at least 40 years of insurance based only on residence, stipulated future periods inclusive, the annual pension is NOK 143,568 (EUR 17,447). Yearly adjustments based on the adjustment of the Basic Amount by Parliament decision, normally taking effect from 1 May. Basic benefit and attendance benefit are fixed to specific amounts independent of the Basic Amount, as part of the regular budgetary process. Excluding the first year of a full temporary disability benefit or disability pension, the recipient is allowed to have an annual income from work of up to the Basic Amount of NOK 72,881 (EUR 8,857) without suffering any reduction of the benefit. With higher income, a lower degree of disability will be set. A recipient of a graded disability benefit or pension may have an income from work up to the Basic Amount in addition to the income corresponding to her/his remaining capacity, without any reduction of the benefit/pension. The sum of the benefit/pension and the income from work must not exceed the income from work before the disability occurred. Temporary disability benefit and disability pensions are subject to taxation. Page 12 of 13
Norway (cont.) Switzerland 1st pillar (basic scheme) and 2nd pillar (statutory minimum): Spouse/registered partner: No supplement. Children: The beneficiary of an invalidity pension is entitled to a pension for each child that, at the time of the death, would be entitled to an orphan's pension. 1st pillar: 40% of the invalidity pension. 2nd pillar: 20% of the full invalidity pension. (a) Situation as of 1 January 2010. 1st pillar (basic scheme): Complete pensions: CHF 1,140 (EUR 766) per Child pension: CHF 456 (EUR 307) per 2nd pillar (statutory minimum): No statutory minimum pension. 1st pillar (basic scheme): In principle, adjustment every 2 years to the development of wages and prices. Early adjustment when the consumer price index has increased by more than 4% in 1 year. 2nd pillar (statutory minimum): Invalidity pensions that have been running for more than 3 years are adjusted to the development of prices for the first time at the beginning of the following calendar year. Subsequent adjustments take place at the same time as adjustments of the 1st pillar pensions. Financial support other than salary agreed with the employer in connection with the retirement from the job or the reduction of working hours, leads to a corresponding reduction of the benefit/ pension. 1st pillar (basic scheme) and 2nd pillar (statutory minimum): Allowed. 1st pillar (basic scheme) and 2nd pillar (statutory minimum): Source: EU Commission, MISSOC Database 2010, accessed at http://ec.europa.eu/employment_social/missoc/db/public/comparetables.do?lang=en on November 04, 2010. Page 13 of 13