Austria Belgium Denmark 2% of "E" per period of 12 insurance months. "E" =. If a person becomes an invalid before completing 56½ years of age, the months preceding the age of 56½ are credited as insurance months. In this case, the supplement may not exceed 60% of highest (reference calculation). For child-raising years (maximum of 4 years per child), a supplement to the pension is due in the amount of 2% per year of a set amount of 630.92. The pension is paid 14 times per year. Normal allowance: 65% of the lost earnings (subject to ceiling) if there are dependants, 45% if single without dependants, 40% if cohabiting person without dependants. Particular cases: The recipient, isolated 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. Pension according to incapacity level: at least 50% and/or social reasons: disability pension = basic amount + pension supplement + (if applicable) pre-retirement 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 52,524 ( 7,061) per year, if income is not above a certain level. Invalidity amount: DKK 25,548 ( 3,434) per year. Married persons: DKK 21,768 ( 2,926) per year each, if both qualify for this supplement or the invalidity allowance. Incapacity for work amount: DKK 35,268 ( 4,741) per year. For married persons: DKK 25,512 ( 3,430) per year each, if both qualify for this supplement. "E" = the average of the (adjusted) income of the best 15 insurance years. The income is only considered up to the upper limit of the contribution assessment ceiling of monthly 3,270. 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 2,886.14. Invalidity benefit is calculated on the basis of lost daily earnings. Ceiling set at 97.28. Not applicable. Contribution-free periods which are credited: Periods of military or war service as well as 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. Periods of child-raising (maximum of 4 years per child). None. Not applicable. Page 1 of 10
Denmark Pension supplement: DKK 24,672 ( 3,317) per year on condition that the earnings of the pensioner and his/ her spouse do not exceed a certain level. For single pensioners the supplement amounts to DKK 52,872 ( 7,108) per year. Pre-retirement amount: If the disability pension is given to a person under 60, a "preretirement amount" is paid as a supplement to the basic amount: DKK 13,356 ( 1,795) per year. Small supplement for pensioners living in the municipal areas where local taxes have risen over a certain amount. Finland National pension: Disability pension: Full amount between 411 and 488 according to marital status and municipality. A full pension if resident of Finland, 80% of time after age 16 and before disability. Otherwise pension is adjusted to the length of residence. Reduced by 50% of the amount of Employment pension and other Finnish and foreign pensions. Pensioners' care allowance: 3 categories: 50.87, 126.65 and 253.28 per month (full amounts; adjusted to the length of residence in Finland). Payable to compensate for costs arising from home care or other special expenses caused by illness or injury. Pensioners' housing allowance: may be awarded to a pensioner residing in Finland. The amount is proportional to the pensioner's income and housing costs and some other factors. Employment pension: Disability pension: Accrued pension 1.5% per accrual year. Accrual rates for credited period is: 1.5% up to age 50, for 50 59 years 1.2% and from 60 years 0.8%. Partial disability pension: 50% of the full disability pension. Individual early retirement pension: equals the disability pension. National pension: Not applicable. Employment pension: Pensionable salary is based on the earnings of the last 10 years and calculated separately for each employment relationship. The number of years to be taken into account will be gradually raised from the former 4 years to 10 years starting from 1996. The full 10-year period being fully in effect by the year 2005. Years with exceptionally low annual income will not be taken into account. For credited period the pensionable salary of the last actual employment relationship is used. No ceiling for reference earnings. Basically none. However, if leave from work due to e.g. maternity is less than one year, this year is credited in most pension schemes (not Temporary Employees' Pensions Act, LEL, and Pension Act for Performing Artists and Certain Other Employee Groups, TaEL). France Group 1 (those 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: 50% of the average annual earnings for the best 10 years of insurance prior to interruption of work (or, when applicable, a shorter period). Annual average salary, limited to the social security ceiling of 28,224 in 2002 which is adjusted every year by decree. The average salary is calculated on the basis of the 10 best years. 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, each day of temporary detention. Page 2 of 10
France Germany Group 3 (those requiring help from another person): Group 2 pension + 40% supplement. Minimum supplement: per year 10,995.78. Partial incapacity: PEP x 0.5 x AR. Total incapacity: PEP x 1.0 x AR. PEP = Personal Earnings Points. The number of income points is based on the level of income on which contributions were paid and the allowance credited for certain non-contributory periods. For an average income, one contribution year corresponds to one income point. AR = Current pension value: Corresponds to the monthly pension paid to an average earner for each year he has been insured. It is adjusted annually to keep pace with net wages and salaries. The actual pension value amounts to 25.31406 in the old Länder and 22.06224 in the new Länder. Greece Persons insured before 31.12.1992: percentage of the fictive wage taken as a reference (see below) 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 440 per month. Persons insured since 1.1.1993: The level of the pension varies according to the number of years insured. Each year corresponds to 1.714% of pensionable income. The amount of the pension varies according to the degree of invalidity: Insured employment income (up to contribution ceiling) during the entire duration of the insurance. The monthly contribution ceiling for 2002 is: West: 4,500 East: 3,750 Persons insured before 31.12.1992: Wage assumed for each of 28 insurance categories, corresponding to average gross earnings in the 5 years before retirement. Persons insured since 1.1.1993: The wages of the last 5 years are taken into account for calculating the pension. The monthly pension may not exceed an amount equal to four times the monthly mean of the GNP per head in 1991, readjusted in line with rises in civil servants' pensions. The periods are taken into account only if the salary received during the course of a calendar year is sufficient to validate at least one quarter's worth of insurance; if this is not the case the periods in question are not taken into account. Credited substitute periods, credited assimilated periods (periods of sickness, rehabilitation, unemployment, studies or higher education over 17 years of age), credited child-raising periods (child-raising up to the age of 10 years) and credited compensation periods (added when the worker qualifies for invalid insurance before reaching the age of 60). Mothers or fathers born in 1921 (West) or 1927 (East) or later are credited with the first 12 months (36 months for children born from 1992 onwards) after the month of birth as an insured period, if they stayed at home to look after the child. 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 the Second World War, periods of military service (option of redemption of 3 annuities), periods of educational leave (option of redemption of 2 annuities), periods of parental leave to bring up the children (option of redemption for 3 months per child). Page 3 of 10
Greece 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 the monthly average of the GNP per capita for 1991 adjusted accordingly each time the civil servants' pensions are increased. Ireland Invalidity pension: 123.30 per week, if aged under 65. 147.30 per week if aged between 65 and 80 years. 153.70 per week if recipient is aged 80 or over. Benefits are flat-rate amounts, independent of previous earnings. Contributions are credited for periods of unemployment, illness or maternity and may be taken into account in order to fulfil the contribution conditions in respect of the contribution year prior to a claim. Italy Invalidity allowance: Earnings up to 36,093 (ceiling): 2% x n x E Partial amount up to 48,003.69 (ceiling x 1.33): 1.6% x n x E Partial amount up to 59,914.38 (ceiling x 1.66): 1.35% x n x E Partial amount up to 68,576.70 (ceiling x 1.90): 1.1% x n x E Earnings over 68,576.70: 0.9% x n x E. n = number of years of insurance (max. 40) E = Reference earnings. Incapacity pension formula: see "Invalidity Allowance". New System: 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 contribution 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. Reference earnings ("E"): For those who on 31.12.92 had worked 15 years: average earnings during the last 5 years, with ceiling. For those who on 31.12.92 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 1.1.1996, the calculation is based on the total of contributions of the entire working life. 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. Luxembourg The pension comprises two parts: a 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: 270.87 per month for 40 years' insurance; income-related pension part: 1.78% of total wage taken into account. For the income-related pension part, the salary or the professional income are taken into account. Minimum amount liable for contribution: 1,290.22 per month. Periods for the rearing of children, 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. Page 4 of 10
Luxembourg Netherlands Portugal For invalidity before age of 55: special flat-rate supplements of 1/40 for each year between commencement of entitlement to pension and age 65 (max. 40 years) and special income-related supplements for years remaining from commencement of entitlement until age 55. The rate of supplement is 1.78% of average salary gained between age 25 and the year of cessation. WAO: Initial benefit: Daily allowance for incapacity level between: 15-25%: 14.00% of 100/108 W 25-35%: 21.00% of 100/108 W 35-45%: 28.00% of 100/108 W 45-55%: 35.00% of 100/108 W 55-65%: 42.00% of 100/108 W 65-80%: 50.75% of 100/108 W 80% or over: 70.00% of 100/108 W W = daily wages. 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. 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. Maximum amount liable for contribution: 6,451.09 per month. WAO: Initial benefit: Net earnings. Ceiling: 159 per day. Continuing benefit: Statutory minimum wage. Reference earnings: average monthly wages 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. For early invalidity: years between commencement of disablement and age 55. None. 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. Page 5 of 10
Portugal For persons insured until 31.12. 2001, who completed their waiting period or will complete it until 31.12. 2016, 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. Earnings taken into account for calculation are adjusted: if earnings registered until 31.12. 2001: according to the consumer price index (excluding housing); if earnings registered after 31.12. 2001: 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%. Calculation basis is the quotient resulting from dividing the bases of contribution of the interested party during the 96 months prior to the one in which the event occurs by 112. The bases corresponding to the 24 months prior to the event will be calculated at their value the remaining will be updated, in accordance with the consumer price index (CPI), from the month to which the said bases correspond up to the month immediately prior to the one in which the period of non-updateable bases begins. In case of an accident other than at work, the is obtained by dividing by 28 the income subject to contributions of a continuous period of 24 month within the last 7 years preceding the event giving rise to invalidity. Annual pension ceiling: 27,343.40. Spain 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). Absolute permanent incapacity: 100% of. Severe incapacity: amount payable for absolute permanent incapacity plus 50%. Workers over 65 years of age who are not entitled to a retirement pension: 50% of the regardless of the degree of incapacity declared. All pensioners receive 14 times monthly pension payment each year. The first year of parental leave to bring up a child under three years is considered to be a period of effective contributions. Page 6 of 10
Sweden A disability pension is paid according to the degree of incapacity at a 100%, 75%, 50% or 25% compensation level. Maximum amounts per month: Disability pension from the basic pension scheme: SEK 2,767 ( 298) Disability pension from the supplementary pension scheme: SEK 11,992 ( 1,292) Care allowance for disabled child: SEK 7,895 ( 851) Handicap allowance: SEK 2,174 ( 234). No reference earnings. Flat-rate benefits depending on the degree of incapacity. A disability pension is calculated on earned pension credits as well as on assumed pension credits for the remaining years until normal retirement age. United Kingdom Long-term incapacity benefit (flat rate): GBP 69.75 ( 111). Age addition: GBP 14.65 ( 23) if incapacity began before age 35; GBP 7.35 ( 12) if it began between 35 and 44. Not applicable. Contributions credited for periods of sickness, incapacity, unemployment and, in the case of men, from age 60 to 65 and to carers. Norway Switzerland 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. Due to the fact that the system was introduced in 1967 and has yet to reach its full effect for old age pensioners, disability pensioners may receive a higher pension than the maximum indicated for old-age pension. Transitional rules linked to changes in the pension part of National Insurance with effect from 1992, also contribute in this direction. 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 in-come (variable amount). If the determining average annual income is less than or equal to CHF 37,080 ( 25,226), the fixed amount of the pension is equal to CHF 762 ( 518) and the variable amount is equal to the determining average annual income multiplied by 13/600. 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. The formula "Old-Age" is then used for the calculation. Those having become disabled before 26 years of age, see above, 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): 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 care-taking (see "Non-contributory periods credited "). 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 caretaking: 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. Page 7 of 10
Switzerland If the determining average annual income is greater than CHF 37,080 ( 25,226), the fixed amount of the pension is equal to CHF 1,071( 729) 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 he/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 = 7.2%. Income earned by spouses during their years of marriage are shared between them (splitting) when both are entitled to the pension, in the event of divorce or when a widow or widower is entitled to an old-age pension. If the insured person is not yet 45 years old when the invalidity occurs, a percentage supplement is added to the average annual earned in-come. 2nd pillar (statutory minimum): The insured salary (= coordinated salary) is the salary between CHF 24,720 ( 16,817) and CHF 74,160 ( 50,452). 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. 2nd pillar (statutory minimum): No non-contributory periods credited or taken into consideration. Czech Republic Every pension consists of two elements: 1) Basic Amount: flat rate CZK 1,310 per month. If two or more pensions are granted (old age, invalidity, survivors), the Basic Amount is paid only once. 2) 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; Person Disabled from Youth: the percentage element is 45% of the annual general assessment base calculated using the national average monthly wage 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, monthly earnings are taken into account as follows: - Up to CZK 7,100: 100% incorporated. - From 7 100 to CZK 16,800: 30% incorporated. - Over CZK 16,800: 10% incorporated. 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 children up to the age of 4 years (18 years if child suffers from a long-term severe disability that requires special care), persons caring for a close relative who is incapacitated, recipients of full invalidity pension who are of pensionable age. Page 8 of 10
Hungary Poland Class III, insured person under 35 years old: 51% of the average monthly income if less than 2 years contribution period, increasing by 0.5% for each additional year of service up to 25 years. Class III, insured person is 35 years old or older and at least 10 years of prior contribution period: amount varies between 37.5% and 67% according to the age when the recipient became disabled and length of insurance period. The youngest recipients with the highest insurance periods receive the greatest benefit. Class II: 5% more than Class III. Class I: 10% more than Class III. Total Incapacity 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%) - kb: "Basic Amount" equal to national average wage over the quarter preceding that during which the retirement, disability and survivors' pensions were last increased; - wpw: reference wage coefficient (shows the relation, as a percentage, between the insured person 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 Incapacity 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 average net earnings since the 1988. The earnings taken into account for the three years prior to retirement age date have to be adjusted by the increase of the national average wage. 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' insurance. The ceiling is 250% of the national average wage. National military service (before January 1, 1998); period of unpaid leave if he/she cared for their child under age 3 years (disabled child: age 10 years); and the period of entitlement to: accident sick pay; the period of the higher education (before January 1, 1998); sick pay. Periods of: sickness allowance payment; parental leave; university study; caring for a dependent person. Page 9 of 10
Slovak Republic Full invalidity benefit: For those with a calculation period of at least 25 years (i.e. years of employment plus years remaining to pensionable age): Risk category 1: 60% of reference earnings plus a supplement of 2% for each year from the 21st year of the calculation period (up to a maximum supplement of 30% or without restriction for certain groups such as miners working in uranium mines for at least 10 years); Risk category 2: 55% of reference earnings plus a supplement of 1,5% for each year from 21st year of the calculation period (up to a maximum supplement of 25%); Risk category 3: 50% of reference earnings plus a supplement of 1% for each year from the 26th year of the calculation period (up to a maximum supplement of 25%). If the calculation period is less than 25 years, the pension is calculated as 2% of the average monthly gross earnings of each year. Partial invalidity benefit: 50% of Full invalidity benefit. (a) Situation as of 1 January 2002 (Switzerland as of 1 July 2002). Source: EU Commission, DG 05, MISSOC 2002. The average monthly gross earnings over the best- five non- consecutive years in the last 10 years. Ceiling: up to SKK 10,000 are taken into account as follows: up to SKK 2,500: 100 %; from SKK 2,500 to 6,000: 33,3%; from SKK 6,000 to 10,000: 10%; over SKK 10,000: disregarded. The period between the origin of invalidity and pensionable age as well as the following periods of basic military service; service in liberation movement; registered unemployment, during the entitlement for unemployment benefit; child care; care for handicapped person; illness; study. Page 10 of 10