European Union

The European provisions on the coordination of social security do not replace national social security systems with a single European system.

Harmonisation of member states' social security systems would be impossible because they are the product of long traditions, deeply rooted in national culture and preferences.

The European provisions are therefore not intended to harmonise, but to coordinate national social security systems. Each member state is free to decide who is an insured person under its legislation, which benefits are granted and under what conditions, how these benefits are calculated and the amount of contributions to be paid.

The coordination rules establish common rules and principles that must be respected by all national public authorities, social security institutions, courts and tribunals when applying national laws. In doing so, they ensure that the application of different national laws does not penalise those exercising their right to move and reside within the member states.

European principles and rights

European old-age pension provisions guarantee the following rights:

• An insurance record is kept in each member state in which the insured person has worked until retirement age. Contributions paid are not transferred from one member state to another and are not reimbursed if the insured person is no longer insured in that state.
• Each member state will have to pay an old-age pension at retirement age. If the person concerned has worked in three member states, they can claim three separate old-age pensions upon reaching retirement age.
• The pension is calculated on the basis of the insurance record in each member state. The amount of each pension depends on the insurance duration in each country.

This is the principle of the aggregation of insurance periods, which guarantees that periods of insurance or work completed in one member state will be taken into account, if necessary, for the acquisition of entitlement to benefits in another member state.

However, certain rules remain national, such as the age of entitlement to a pension.

Consequently, an insured person who has completed periods of insurance under the legislation of several member states is awarded a partial pension in each country, the amount and legal age of which are determined in accordance with the provisions applicable in the state concerned.

Eligibility criteria

A state pension is only paid if the applicant meets the conditions for entitlement set out in that country's legislation. The statutory retirement age varies from country to country. In the event of a mixed career under old-age insurance schemes providing for different ages, the insured person will receive partial pensions from each country once they have satisfied the age condition provided for by the respective legislation.

To be entitled to a Luxembourg old-age pension, the person concerned must have paid insurance contributions for at least one year in Luxembourg and at least ten years aggregated in another EU country. If the period is less than one year, the months contributed in Luxembourg will be taken into account by the other country and will not entitle the person concerned to receive a Luxembourg pension.

Pension calculation

In the case of a mixed career, the applicant receives a pension from each country in which they have been an insured person. The amount of each pension to which the insured person is entitled is proportional to the number of years of contributions completed in the country concerned.

Each state in which the person concerned has been insured makes the following comparative calculation:

• National pension: Calculated on the basis of national legislation, taking account only of periods worked in the country for more than the minimum enrolment period;
• Theoretical amount: The competent institution calculates the theoretical amount of the old-age benefit that would have been due if the insured person had completed all the insurance periods (including those completed abroad) under its legislation;
• Proportional pension: On the basis of the theoretical amount, it sets the actual amount in proportion to the insurance periods actually completed under its legislation.

The relevant pension fund will then pay the higher of the two pensions.

Procedure - Pension application

If you have worked in several countries, it is advisable to submit your pension application in your country of residence, unless you have never worked there. In that case, you should submit your claim in the country where you last worked.

The pension institution that received your application acts as your contact point and will examine your file by exchanging information with the relevant institutions in the other countries.