Partial pensions

Since 2003 it has been possible for government employees, when they become 61, to apply for partial pension. Partial pension means reduced working hours while SPV makes up for part of the loss of income this working hours reduction brings.

Conditions for partial pension

In order to be covered by the Partial Pension Agreement, employees must, prior to their applications, have been entitled to collective agreement-stipulated pension rights for a total of 120 months. If permitted by the employer, working hours may be reduced by up to 50% of full time employment for partial pension.

Compensation from SPV

The Partial Pension Agreement means that SPV pays the working hours reduction due to partial pension up to the equivalent of 60% of the partial pension base. The partial pension base is formed by the reduction in working hours multiplied by the employee’s pensionable salary.

If, for example, you have a full time position and you are granted 50% partial pension, you will work and receive salary for a 50% position, be a partial retiree for 50% and receive payment from SPV the equivalent of 60% of the half time salary you no longer receive from your employer. The result is that you will receive 30% of your previous full timer salary from SPV in the form of pension replacement so, as a monthly income, you have approximately 80% of your previous fixed salary (salary and pension replacement together).

Affect on future occupational pension

Partial pension does not affect your future occupational pension. According to the agreement, you are counted as working full time. Partial pension is, in other words, not an advance withdrawal or a weakening of your pension base. Payments to the defined contribution occupational pension are made as if the partial pension had not been taken.

Affect on future retirement pension

Partial pension does affect your national retirement pension as partial pension is not counted as pensionable income. Your national retirement pension may, consequently, be reduced if you take out partial pension.

Remaining employed after 65

Partial pension does not mean that you can remain in employment after the age of 65, and in such case, you have the same cover as before your partial retirement. You are not permitted to draw partial pension after the age of 65.

Temporary change in the partial pension agreement during 2023

If you were born in 1958, receive partial pension and may be entitled to the minimum guaranteed pension as part of your state pension, your employer can choose to extend your partial retirement until the month before you turn 66.

An additional decision can only be given to a person who already receives partial pension who turns 65 in 2023. You must be able to show the employer that you have such a low pension that your state pension will partly consist of the guaranteed minimum pension that will not be paid out until you turn 66. An additional decision is not a right, but it assumes that you have been affected by the changed conditions regarding the guaranteed pension and that the employer has other prerequisites for the additional decision. You must apply to your employer for an extension of a previously granted partial retirement. The decision must be made quickly and cannot extend further than until the employee reaches the age of 66.

Local applications of the Partial Pension Agreement

The aim of the Partial Pension Agreement is to enable transfer of competence and assist employees to be able to remain at work until the normal retirement age. Different universities conclude that they have different preconditions and competence needs as concerns the granting of partial pensions, consequently the situation may vary from university to university. If you have any questions concerning partial pension at your university please contact your local union representative.