The opportunity to secure an EU pension is an underappreciated, but a very significant benefit of working for the EU institutions: European Commission, European Parliament, European Council or any of the 40+ EU agencies and several other EU institutions.
The EU pension is a defined benefits/final salary scheme that guarantees you an inflation-adjusted monthly income until your death. Additionally, after you pass away, your surviving spouse will continue to receive a survivor’s pension until her/his death that is a significant part of the pension you were entitled to.
While all of the information below is from public sources, it is often hard to access and understand due to “legalese” and the the sheer size of the documents. This article outlines the main facts about ‘EU pensions’ in an easy to understand manner.
How to qualify for a European Commission pension?
Anyone who works for the European Commission, European Parliament, an EU agency or another EU institution, is entitled to an EU pension after 10 years of service. You have to accumulate your 10 years before you reach either the mandatory pension age (66 years in 2021) or early-retirement age (58 years in 2021).
You can work for different EU institutions at different times in your life. All of your employment periods in EU institutions will be summed up and count towards a 10-year minimum as long as you do not withdraw the accumulated pension capital to a private pension scheme.
The pension contribution (tax) is the largest deduction of one’s salary. 9.7% is automatically deducted from your salary each month to accumulate the pension capital, and no actions need to be taken by you.
What is the mandatory European Commission pension age?
The mandatory pension age is 66, at which you will be able to receive the full amount of pension that you are entitled. It is possible to work until 70 if it is exceptionally justified. After reaching 70 a person is retired automatically and there is no possibility to remain in employment of EU institutions.
How large is a pension after working for EU institutions?
There is a minimum pension for former EU officials. It cannot be less then 40% of the basic salary for an EU official in the AST 1 (step 1) category. In 2023 this amounts to EUR 1331.00 (salary for AST 1 EUR 3327,49 * 10 years of service * 4%).
European Commission Staff Regulations
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Your pension after the 10 mandatory years of service cannot be less than the minimum pension for EU officials – see above. If you are interested in more detail, the answer depends on a number of factors:
- Length of service. For each year of employment a person is entitled to 1,80% of the final basic salary. For example, if you have worked for EU institutions for 10 years, you will be entitled to 18% of your final basic salary; 20 years will qualify you for 36%; 30 years – 54%; 40 years – 72% (which will be capped at 70%).
- Basic salary in last employment position. Your pension will be calculated as a percentage of the basic salary.
- Pensions are adjusted to the actual cost of living in the European Union and should slightly increase over time.
- The final pension amount may not exceed 70 % of the final basic salary.
If you have worked for several EU institutions, your pension will be calculated based on the last basic salary you received.
In practice, if you are an AD5 in Brussels at the end of your career with a basic salary of 4883, you would be entitled to the following amounts proportionally to the time worked for the EU:
- 10 years = EUR 4883 basic monthly salary X 1.8% X 10 years = EUR 878.94. In this case you would instead receive the European Commission’s minimum pension of EUR 1200.24.
- 20 years = EUR 1757.88
- 30 years = EUR 2636.82
- 40 years = EUR 3515.76
Of course, if you start as an AD 5, your final basic salary would actually be higher as you would advance through the steps of the pay scale every two years. The above calculation is meant to just be an illustration of the principle.
Pensions and the Correction Coefficient
The European Commission Correction Coefficient is not applied to pensions (Article 82 of Staff Regulations). In practice this means that you will receive the same pension independent of where you live after retirement.
Can I retire early? What are the consequences?
The early retiretirement age is 58 years (in 2021).
An early retirement pension amount is reduced 3,5% for every year before mandatory pension age of 66. Hence, if you decide to retire at 58, you will incur a 28% reduction of your pension. Unfortunately, the pension will not increase once you reach the regular retirement age.
Can the EU pension be inherited by a surviving spouse and/or dependent children?
Yes. The surviving spouse of a former EU official is entitled to 60% of the pension paid to the official. The amount that can be inherited by dependent children varies on the individual situation and the ‘orphan’s pension’ can only be precisely calculated by the Paymaster’s Office.
EXAMPLE
If you are entitled to the minimum European Commission pension of EUR 1200.24 (100%)
THEN
your surviving spouse will receive up to EUR 720.14 (up to 60% of former official’s pension) until her/his end of life.
Divorced spouses are also entitled to a survivor’s pension if they can prove that the (former) EU official was supporting them based on a court order or an officially registered settlement in force between both parties.
If you are in such a situation, please contact either the European Commission’s Paymasters Office or the HR Department of the last institution your spouse was working for in order to find out the steps to take.
Very important – unless there are proven force majeure factors, the survivors pension has to be requested within one year of the former EU official’s death. Otherwise, the spouse’s and dependents’ rights are forfeited.
Does my EU pension capital accrue interest while I’m waiting for my pension age?
Yes. The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021).
What if I leave an EU job before I accumulate 10 years of service?
For most people the best strategy is to leave your pension capital with the European Commission Paymaster’s office as it accrues a 2.9% per annum in interest. You can accumulate your 10 years in EU institutions over an unlimited number of instances of working for EU institutions until the mandatory retirement age of 66.
Some institutions strongly encourage the “transfer out” of the accumulated EU pension capital claiming that it might be “very hard” to do it at a later date. However, there is no particular difference in the amount of work for you whether you decide to move your EU pension capital to a third tier pension management fund right after leaving an EU institution or much later. The only caveat – you pension capital left with the EU Paymasters Office will be completely lost if you happen to die before reaching your pension age. And, of course, don’t forget about your pension capital once your retirement age comes and you have not accumulated the necessary 10 years to qualify for an EU pension.
If you decide that you never again want to work for the EU, you can “transfer out” your pension capital to any of the European Commission-approved pension management schemes in all EU member states. The funds will only become available to you once you reach the age of 60.
Reasons to “transfer out” your accumulated EU pension capital:
* You do not plan to ever again work for EU institutions
* You are certain that you will be able to invest your EU pension capital in an investment vehicle that returns substantially more than 2.9% per annum
* You are worried that you might die before retirement age (chronic disease, family health history, dangerous hobby, etc.)
Once you “transfer out” but again start working for a EU institution, you will be able to transfer in your accumulated pension capital, but not the accumulated ‘pension years’ to qualify you for an EU pension. So – choose carefully.
Not only an EU pension, but also health insurance for you and your spouse
After an EU official becomes entitled to an EU pension, the person and his/her spouse and any dependents also become entitled to the JSIS – the European Commission healthcare insurance scheme. It reimburses between 80-85% of most healthcare costs. If you have what are considered serious illnesses you can obtain a 100% reimbursement. This should be a major appeal for people in retirement.
If there are any dependents, the retiree is also entitled to the relevant allowances such as the household allowance and dependent child allowance.
Where to get consultations and help regarding European Commission pensions?
Former employees of EU institutions are usually advised to contact the HR department of the last institution they were employed by.
It is also possible to get in touch with Office for the Administration and Payment of Individual Entitlements also know as the Paymasters Office (PMO), contacts here. If you have questions about JSIS, the European Commission health insurance scheme, including coverage of funeral expenses, you can find the relevant Paymasters Office contacts here.
AIACE – International Association of Former Staff of the European Union
When you retire from an EU institution, consider becoming a member of AIACE. For the 40€ annual fee (differs by location of national units) you can get a number of benefits:
- Access to a helpdesk (consultations on key retiree issues). Virtual and in-person consultations in Brussels
- Legal assistance at a reduced fee
- Special complimentary insurance availability to complement risks not covered by the JSIS (currently offered by Cigna)
- Accident coverage
- Coverage of the difference in all medical costs and those reimbursed by the JSIS
- A monthly Cigna consultation
- Quarterly VOX bulletin sent to all of the retired staff. National bulletins sent to members of country chapters
- Yammer chat
- Voluntary work opportunities and possibility to received help from other volunteers; social contacts and events
Main facts about AIACE:
- AIACE has special Partnership Agreements with the European Commission, the European Parliament, the European Court of Justice, the European Social and Economic Committee, the Committee of the Regions, the Court of Auditors, and the Council. All the above institutions recognize AIACE as the representative of their retired staff
- Founded June 1969, AIACE has over 12000 members out of a total approximately 23500 retired staff
- 15 national branches (20 retirees can form a national branch)
- AIACE lobbies on behalf of retired EU officials and defends their rights at the European Commission and other EU institutions. AIACE is even an official member of a number of working groups that affected the interests of former EU administrative agents and contract agents
AIACE contact details:
- Website: www.aiace-europa.eu/
- Address: N105 00/23, 105 Avenue des Nerviens 00/036, Brussels, 1040, Belgium
- Telelphone: (Belgium): 02.2952960
- Email: aiace-int@ec.europa.eu
Frequently Asked Questions
EU officials have their own pension scheme, managed by the European Commission. This pension scheme serves the former statutory staff of the European Commission, European Parliament, European Council, the 40+ EU agencies and all other EU institutions.
The minimum pension for EU officials cannot be less than 40% of the basic salary for an EU official in the Assistant grade AST 1 step 1 category. In 2023 this amounts to EUR 1331.00 (salary for AST 1 EUR 3327,49 * 10 years of service * 4%).
Yes, pensions of former EU officials are regularly adjusted to inflation the same way as salaries of Administrators, Assistants and Contract Agents. As an example, the minimum EU pension in 2021 was around 1200 euros, but rose to 1311 euros in 2023 as salaries of EU officials also increased.
Mandatory pension age for EU officials is 66. EU officials can retire early from the age of 58, but they take a permanent decrease of their pension for every year of early retirement. Pension of an early retiree does not increase once the person reaches age 66.
Do you still have questions regarding EU pensions?
As usual, if there is an unanswered question or you have spotted a mistake, please write a comments and me and the EUE community will do our best to help and update the article.
This article is based on the European Commission Staff Regulations and other publicly available information such as EU institutions’ vacancy announcements.
132 responses to “Pensions for Staff of European Commission and other EU institutions”
Dear Ben,
referring to the staff regulation
“He shall, however, be entitled to such pension irrespective of length of service, if he is over pensionable age,”
I have 3 questions please:
Is pensionable considered to be the 58th or 66th year of age?
Is the minimum pension then increased in case that you transfer-in (I have 10 years from Germany which I could transfer in).
And without any transfer-in, which is the amount of minimum pension, given that you have not completed the 10 years of service in the Institutions?
Thank you
Hi Ben,
is there a disability/invalidity pension scheme for those who have to drop out due to permanent illness?
Hi Ben,
Please help me to find out where could I get exact information about how much I accumulated in my “pension account”. I worked for 3,5 years at the European Parliament’s Secretariat in Luxembourg as Contract agent and Temporary agent on various positions. As I get it correctly, I can withdraw the whole amount, or transfer it to my national pension scheme when I reach retirement age. Thanks, Gabriel
Gabriel, hi! You should write to either your last institution’s HR department, or straight to the PMO Luxembourg office. The following contact details should work: PMO-RCAM-LUX-RDV@ec.europa.eu or + 352 4301 36100 +32 2 29 11111. The phone working hours are usually very short so try in the morning from 9:30 to 12:00. Hope this helps!
Hi Ben, thanks for your really helpful website.
I have a question regarding the survivor’s pension and hope you can help.
Does a survivor receive 60% of their spouse’s EU pension when they themselves already receive a state pension?
As far as I’m aware, the answer should be a “yes”. If you have earned the pension rights, there’s no reason for them to go away because of a parallel entitlement.
However, it’s safest to enquire with the PMO or your institution’s HR.
From your article: The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021).
Can somebody explain to me how this compund interest will affect my pension when I worked for the institutions 10 years and I will get only the fixed minimum pension?
Hi Ben, will a child of unmarried parents get orphans pension from. Say an eu retiree who has a child but was not married to thw childs mother. Will such child be entitled to orphans pension?
Hi! Entitlement to child-related allowances and benefits is not linked to parent’s civil status, but paternity/maternity. Hence the answer is yes.
Deal Ben,
I worked in a management position for several years but then moved to a non-management (adviser) position a few years before retirement. Do I lose the management allowance completely for the calculation of my pension of is is taken into account on a pro rata basis?
Thank you
Stefan
Hi! This would be a question to your institution’s HR or the PMO. I believe PMO only takes the basic salary into account when calculating the pension amount, but I might be wrong.
If you enquire with HR/PMO, please let us know what was the response.
I think I should establish a Facebook group, where it would be easier to have discussions on questions like this.
Hi Ben,
I would like to know if you can still perform paid work after retiring. Could the amount paid be deducted from your pension?
Best regards,
Maria
There are plenty of officials who have retired (and receive a pension from the EU) and continue working. One example for all – the former Secretary General of the Commission:
https://www.arnoldporter.com/en/people/i/italianer-alexander
(you are still required to comply with the staff regulations, e.g. on conflict of interest)
Thank you so much Max!
Thanks for this article. Is it incompatible to receive the EU pension and another pension as well?
If you have qualified, you can receive a pension from another source in parallel to the EU pension. While it is not encouraged by the EU, some staff continue to pay national pension contributions during their period of EU employment to also get national pension entitlement. This probably makes most sense if you have 10 or less years remaining to qualify for a national pension. Also – there is nothing to prohibit you from taking part in the so-called 3rd pension tier funds, where you make a fixed payment every month and then it gets invested on your behalf.
I would be much obliged if you could advise whether former contract employees of European Union Missions in Kosovo, Bosnia or Somalia are entitled to pensions where they were in continuous employment for years in some cases over 8 years.
Apologies, but I know very little about EU missions. Could you please contact the mission’s HR or the Paymasters Office, PMO?
Dear Ben,
you write in your article: The accumulated pension amount accrues compound interest at a rate of 2.9% per year (in 2021).
How does this actually affect my EU pension? Because you write in other parts of article that: your pension will be calculated based on the last basic salary you received.
Is there any extra amount added to my monthly pension then?
Thank you
Once you start to receive your pension, it is indexed at least once a year, usually, in December. You might then get a retroactive extra payment due to inflation (and there is the theoretical possibility of a deduction from a pension due to deflation).
Hello Ben
Thanks for the article, amazing!
I get that once pension is taken early, say at 58, it stays at the level and there is no ‘jump’ at the normal retirement age of 66.
Would you know though if the pension, once in receipt, is adjusted in line with an inflation index? Or alternatively, if the 2.9% compounding mechanism applies to the pension also when a person is already retired? I would imagine that there is an inflation protecting mechanism but thought I would confirm.
Thanks again for the great content!
Maciej
Hello Maciej,
I don’t work for the European commission, never have, probably never will. However as dealing with my parents divorce and associated alimony, my father (who worked for the European commission) I’ve had to contact the PMO to sort out pension, alimony and indexation.
I’ve had it confirmed to me in writing that:
“We do not pay an indexation according to the national increases. The indexation for both active and retired staff takes place every December with a retroactive payment to July of the same year.”
It has also been confirmed to me that been confirmed to me that this refers to “the indexation of people receiving a retirement, survival or invalidity pension from the EU institutions.”
Hope that answers the indexation question for you. For the 2.9% i can’t assist however.
Kind regards,
Martin
As Martin replied, pensions are indexed. However, this is a specific EU institutions process that usually lags behind actual national inflation/deflation statistics.
Hi Ben,
Thank you for your very informative article. Do you know whether the years someone works part-time (80% or 90%) while still paying 100%/full-time pension contributions count as full years of service, i.e. towards the 10 year minimum after which a pension can be claimed?
Many thanks,
Michael
I’ve just got an answer to this from the Pensions Department in the EU institution I work in. The answer is ‘yes’. I thought it would be but preferred to ask a possibly silly question than to discover later that I’d have to work a few extra years!
Thanks again for you excellent site and for the advice you provide.
Thanks so much for taking the time to share the PMO reply!
Dear Ben,
Your article is greatly helpful and informative. I thank you for your personal effort and time invested. I have a few questions about my future pension rights with the EC, questions that may be interesting to other readers as well.
1)I am currently 46, married, with 1 child of 2 years, so I currently receive the household allowance and the dependent child allowance. In 3 years, I will have 10 years of service as EC official (contract agent).
Does this mean, if I stop working with the EC after having the 10 years pension right, that I can request to receive at the age of 58 the pension monthly amount of 1200.24 minus 28% = 864 euros, plus household allowance (if still married at that age) plus dependent child allowance (provided that the child’s age permits so)?
2) If I leave the EC after a total of 10 years of service, and I don’t transfer out my EC pension right, will this affect my national pension scheme? ie. If, at the age of pension in Greece, I don’t have enough pension years (if the EC years are not to be taken into account, since I won’t transfer them out (to Greek pension scheme), does this mean that I might not be eligible for a national pension?
I hope I have been clear. I am a bit confused on how the EC pension and the national pension work together.
Thank you very much in advance. Take care.
Hi!
1) Yes. That is also how I understand the rules. That’s the pension amount, you will keep on getting the child allowance. You will also entitled to the education allowance if applicable (covers also university studies at double rate). Once you retire, your spouse and dependents also get JSIS coverage. Bear in mind that the pension amount will not increase as you age, it will stay at the early retirement amount (which really sucks).
2) If do not transfer out, of course, you will not get additional rights in the national pension system. The best thing to do, once pension nears, ask for a precise calculation from PMO and the national system. You can also transfer in national pension rights, but they are not counted in years, but in financial capital.
If this is relevant, ask your HR when is the nearest PMO pension rights webinar. Those are really good and you can follow-up with questions to PMO colleauges after the webinar.
Thank very much you Ben! Be well.
Hi Ben thanks for the info.
One more explanation needed: if we worked in an EU member state before joining the EU Institutions but we did not reach the minimum period requested in some MS (like in Germany is 5 years), but we did not want to transfer IN the EU scheme this previous contribution, it was said by PMO that the pension authority of that MS has to take into account years worked in the EU institutions to reach the minimum period and pay a pension pro-rata. Do you have any further information/evidence about this? thanks in advance
Sorry, this is too specific, you would have to ask PMO or the national institution.
Hello Ben,
you are very clear.
I have only one doubt and I hope you can clear it up for me: in a few days I will go to work in Brussels (moving from Spain). When I will be eligible for the right to a pension, would my expatriation allowance and family allowance be paid to me together with the minimum pension of 1200 euros, although my residence remains in Belgium?
Thank you!
Household allowance seizes to be paid. You will continue to receive dependend child allowance if you children are in your care. If they atttend a for-a-fee school or university, you will continue to receive the education allowance until they graduate or reach the statutory age when the allowance stops.
Hi! Thanks for your articles – very useful!
A question regarding the 10 years necessary to qualify for a EU pension – does CCP count to that effect?
Say, a person who has worked for 6 years in an EU institution and then went on CCP for 4 years – is she entitled to the pension (albeit to an amount corresponding to her last salary in the EU institution)?
Thanks!
Could you please clarify what does CCP mean? I think it was one of the EU’s special missions to third countries, but am not completely sure about this.
If that’s what you mean, another reader recently pointed out that it really depends on the contract. Staff of CCP missions usually are not statutory staff of EU institutions, and hense this work experience doesn not count towards 10 minimum years to qualify for an EU pension. However, looking forward to your clarification and also info about what type of contract you had.
Sorry, CCP is the french acronym for “Leave on personal grounds” – art. 40 of the Staff regulations. I was an administrator (AD).
Hi,
I just have a basic question. As an EU Commission official I have my pension rights secured after 10 years and calulated as explained above.
Now, according to the treaties the salaries of EU officials are not subject to national taxes. What about the pension? Is taxed according to the rules of the country of residence of the retired official?
Thank you
Dear Filo,
Same community tax principle applies for the pensions so not according to the country of residence.
However the country where you will take your retirement residence has an influence on your pension coëfficient and thus can in- or decrease with the same level of rights accordingly the final amount.
As far as I’m aware, the correction coefficient is not applied to pensions. You get the 100% Brussels amount irrespective of where you choose to retire. This can also be a third country.
Pensions are also not taxed in the home country. EU countries are generally aware of this. If you run into issues, you must contact PMO and ask for assistance. Issues appear to pop up from time to time, but these most often individual cases related to banks, overzealous state institutions staff etc.
Dear Ben, my wife has been working for the Commission for the last 17 years as a temporary agent. We are getting a divorce and as a spouse I need information about my pension rights and also my JSIS coverage. I don’t have access to the system and I don’t know who to contact. I am sure there are many spouses that have the same problem. I would really appreciate your help.
Dear Tobias,
Unfortunate to read what you are going through. Although it is a general answer I am giving here; I am afraid that you are not entitled for any pension right as its entitlements are linked to the person who worked for the Institution. The JSIS coverage (full/complementary) will cease to exist in the end too.
In such case you will have to check / enroll with the (un)employment/social wealthfare office of the country you reside in.
If you believe you have a particular case or for a more accurate info, try the contact details you find here in the link below:
PMO – Rights, salaries and allowances:
https://ec.europa.eu/pmo/guide/rights-and-allowances.html
JSIS – Welcome Desk/Hotline:
https://ec.europa.eu/pmo/guide/jsis-request-of-information.html
Erik, thanks so much for helping to answer to questions! ❤️
Tobias, hi! If you divorce, you are most likely using the rigths to the survivor’s pension and also JSIS coverage when you retired as the spouse of a retired EU official.
If you want to have official information, you must write a letter to PMO, the Paymaster’s Office of the European Commission. You will find contacts of the relevant unit here: https://ec.europa.eu/pmo/
Dear Ben,
Thank you so much for the effort in collecting all this info in one article! It is much appreciated.
I would like to ask you a question that arises from the wording you are using in the text. More specifically, you mention: “The mandatory pension age is 66, at which you qualify for a full EU pension”. When you write “full pension”, do you mean 70% of your last basic salary, or the pension corresponding to (number of years worked) X 1.8%?
I hope you will find the time to respond but, regardless, thanks a lot for all the info provided 🙂
Cheers,
Nikos
Nikos, thanks for the question. I meant “the pension corresponding to (number of years worked) X 1.8%”. Will try to specify this more clearly in the text.
Sorry about delay in replying, lots of work lately.