General scheme and special transitional scheme

Transition from a special transitional scheme to the general scheme:

Retroactive insurance

Any person falling within the scope of a special transitional regime who

• leaves the service of the State, a public establishment, the “Société nationale des chemins de fer luxembourgeois” or an employer covered by the “Caisse de prévoyance des fonctionnaires et employés communaux” without being entitled to a pension under a special transitional scheme, or
• is deprived of all pension rights, or
• dies without having completed the enrolment period

is insured retroactively with the National Pension Insurance Office for periods that would have been counted for calculating pensions under the special transitional scheme. These periods are to be considered as compulsory periods.

Similarly, civil servants, officials or employees who are entitled to a deferred pension under a special transitional scheme may opt for retroactive insurance up to the date on which the insured person may actually draw their pension. This option is irrevocable and must be made in writing to the National Pension Insurance Office, which will inform the competent institution of the special transitional scheme.

Actual earnings corresponding to periods under the special transitional scheme are taken into account within the limits of the minimum and maximum contribution rates in force with the National Pension Insurance Office.

For periods of leave without pay and part-time leave following maternity leave or for periods of parental leave, the last salary reached before the start of the leave without pay or parental leave and double the salary received during the period of part-time work or part-time parental leave are taken into account.
However, retroactive insurance relating to periods spent as a member of parliament or as a member of the Council of State is provided by exceeding the limits set for determining contributions to the CNAP.

At the time of retroactive insurance with the National Pension Insurance Office, the competent institution for the special transitional scheme will transfer contributions for all the periods.

Contributions are calculated on the basis of the remuneration taken into account and according to the contribution rates successively applied under the former pension scheme for private employees respectively under Book III of the Social Security Code. The public authorities' share is included. The nominal amount of the contributions is increased by compound interest of 4% per annum from 31 December of each year of service.

Transition from the general scheme to the special transitional scheme:

Transfer of contributions to the special transitional scheme

When a person moves from the general scheme to a special transitional scheme, the contributions paid to the general scheme for the periods that were approved by the special transitional scheme are transferred by the general scheme pension institution to the institution that will take them over.

Contributions paid for enrolment periods that have given rise to a benefit or reimbursement of contributions cannot be transferred, unless the latter contributions have been refunded or the rights attached to them have been revived. Except in the case of subsequent retroactive insurance, the periods corresponding to the transferred contributions no longer entitle the insured person to benefits under the general scheme.

The nominal amount of the contributions is increased by interest compounded at 4% per annum from 31 December of each year of service.

Concurrent enrolment in the general scheme and a special transitional scheme: overlapping benefits

When a person has been subject to the general scheme and the special transitional scheme at the same time or, in the event of successive enrolment in the general scheme and the special transitional scheme, when the conditions for validation are not met, the insured person may be entitled to a pension under both schemes.

This date of entitlement is made possible by the fact that, to make up the qualifying conditions, the periods completed under the two schemes are added together, provided they do not overlap.

The date of entitlement to an invalidity pension under the special transitional scheme fulfils the condition relating to invalidity required under the general scheme.

The date on which entitlement to a survival pension begins under the special transitional scheme fulfils the eligibility criteria laid down by the general scheme.

In the event of entitlement to a pension under the special transitional scheme and the general scheme:

• the pension under the special transitional scheme is calculated in accordance with the provisions of the legislation on pensions for civil servants;
• the pension portion of the general scheme is limited to proportional increases calculated on the basis of pensionable income corresponding to the periods recognised by this scheme;
• the end-of-year allowance is determined on the basis of years completed in the general scheme.

Where proportional increases and special proportional increases under the general scheme are superimposed on special increases granted under the special transitional scheme for the same period, the special increases are reduced by the amount of these increases. If special proportional increases under the general scheme are superimposed on increases under the special transitional scheme, these increases are reduced by the amount of the special proportional increases due for the same period.

If a divorced spouse or former civil partner becomes entitled to a survival pension under the general scheme and the special transitional scheme, the pension of the divorced spouse or former civil partner and any division between several divorced spouses (former civil partners) and one surviving spouse (partner) is determined in accordance with the rules of the special transitional scheme.

Provided that the deceased spouse or partner was not subject to the special transitional scheme on the eve of the divorce or dissolution of a civil partnership, the divorced spouse's or former civil partner's survival pension, determined on that date, is calculated in accordance with the provisions of the general scheme and charged to the special transitional scheme.