I am preparing my pension application...

What can I do to better prepare my pension application?

From the age of 55, insured persons have the possibility of submitting a pension estimate request to the CNAP. Insured persons are strongly advised to make use of this possibility, which enables them to:

1. know the first date at which a departure is possible,
2. know the level of the future pension, and
3. accelerate the future pension application procedure.

When should I submit my pension application?

The processing time for pension applications depends on the availability of the data at the disposal of the CNAP.

In order to avoid delays, it is advisable to submit the old-age pension application several months before the commencement of the entitlement. Whilst periods of between three and six months are generally sufficient for purely Luxembourg careers, for careers in several countries it is preferable to submit the pension application between six and nine months before the start of the pension.

How should I indicate my years completed abroad?

It is sufficient to indicate in the pension application form in which countries you worked and to record your social security number for the country in question.

What elements should I pay attention to?

Find out whether you are entitled to baby-years (See question ‘What are baby-years?’ and following); this is the last moment at which you can apply for them. Make sure to attach all the necessary documents in order to avoid prolonged application processing times.

I have children...

What impacts can my children have on my pension?

Children can have an impact on the pension in two ways.

If you did not pursue a professional activity (continuously) after the birth of the child, these periods may none-theless be recognised for you to determine whether you have a career of 40 years or not – certain ‘gaps’ in the professional career are therefore not ‘gaps’ in the insurance career by virtue of children.

If you did not interrupt your professional activity after the birth of the child, the taking into account of children does not allow you to retire earlier. However, the taking into account of children under baby-years (See question ‘Can I benefit from baby-years even if I continued to work?’) can increase your pension

What are baby-years?

Baby-years are a period of two years that can be taken into account if, during the 3 years before the birth of the child, you were insured for at least 12 months under compulsory insurance [worked for at least 1 year during the 3 years preceding the birth of the child]. For non-residents at the time of birth, reference is made to question Can I benefit from baby-years as a non-resident at the time of birth of the child?.

If you interrupted your professional activity after the birth of the child, the baby-years allow the two years direct-ly following the birth of the child to be taken into account as working years – the ‘gaps’ in the professional career are therefore not ‘gaps’ in the insurance career by virtue of the baby-years. Despite the interruption of the career for 2 years, you can therefore retire at the same time as if you had not interrupted your career immediately after birth.

Irrespective of whether you interrupted your professional activity after the birth of the child or not, the baby-years furthermore allow you to increase your future pension by at least 140 euros.

The period of baby-years is increased to 4 years if, at the time of the birth of the child, two other children are living in the household, or if the child suffers from a disability.

Baby-years must be applied for via the dedicated form – the application thus made is irrevocable. The two-year period of baby-years may be shared between the two parents of the child.

Can I benefit from baby-years even if I continued to work?

Yes, even if you did not interrupt your professional career, the baby-years allow your future pension to be increased by at least 140 euros. However, the taking into account of baby-years does not allow you to retire earlier if you continued to work.

Can I benefit from baby-years as a non-resident at the time of birth of the child?

If you were compulsorily insured in Luxembourg [for example by working in Luxembourg] during the two years following the birth of the child, then as a non-resident you are entitled to baby-years under the same conditions as residents.

If you were not compulsorily insured in Luxembourg during the two years following the birth of the child, then baby-years can be taken into account only if you do not benefit from other child-raising periods for that child from another country.

Can I share the baby-years with the other parent of the child?

Yes, the baby-years period may be shared (50% – 50%) between the two parents of the child.

Can I modify the taking into account of baby-years?

No, the application for taking baby-years into account is irrevocable and cannot be subject to subsequent modification.

What are child-raising periods?

Child-raising periods are (additional) periods that allow a person who did not work during one (or several) year(s) whilst raising in their household a child under the age of six to have that year recognised for pension insurance purposes.

The ‘gaps’ in the professional career are therefore not ‘gaps’ in the insurance career by virtue of child-raising periods. These years are only taken into account for pension departures after the age of 60 of the insured person.

I work part-time

What is the impact on the date at which I can retire?

Provided that you work at least 64 hours per month, a month is validated in full, regardless of whether you work part-time or full-time.

Thus, if you work at least 64 hours per month, being in part-time has no impact on the date from which you are entitled to the pension.

What is the impact on the amount of pension I can receive?

Given that the pension amount depends mainly on the contributory income, working part-time, and thus receiv-ing a partial salary, mechanically reduces the pension level to which you will be entitled in the future.

It is not necessarily working fewer hours, but rather earning less, that implies the future pension will be lower.

In order to get an idea of the potential loss linked to the salary reduction, you can consult our pension estimator and make a pension projection:

1. with your reduced salary and
2. with your higher salary, to compare the two results.

How can I reduce the loss on my pension entitlement?

If you reduce your professional activity, you can insure yourself voluntarily by making voluntary contribution payments in order to compensate for (part of) the loss of your contributory salary. See question ‘Under what conditions may I insure myself on a voluntary basis for pension purposes?’ and following for more details.

I want my studies to be recognised for pension purposes...

What type of studies are considered?

All studies after the age of 18 can be recognised, if during these years you were not insured on another basis.

Studies which can be recognised are secondary, higher or university studies completed in Luxembourg or abroad, evening courses, as well as internships required for obtaining a diploma.

The number of years of studies taken into account may not exceed 9.

The years of studies do not necessarily have to have been completed successfully in order to be recognised for pension purposes.

How are my years of studies taken into account?

Years of studies are taken into account to determine the number of years of insurance for retiring after the age of 60 only.

They only apply if you were not insured through employment, for example, during your years of study.

What is the impact of study periods on the level of the pension?

Given that during study periods you do not pay contributions, the impact on the level of the pension of the recognition of these studies is very marginal. Thus, it allows you to retire earlier, but it has hardly any impact on the level of your pension.

How can I have these study periods recognised?

You must submit an application to the CNAP for the recognition of study periods. This application may be submitted at the earliest from the age of 55 and at the latest at the time of the pension application.

This application must be accompanied by the necessary supporting documents. Depending on the course of your studies, the final diploma alone is not always sufficient: it may be necessary to produce enrolment certificates for each of the years of study concerned or to present a certificate from the educational institution.

I wish to insure myself / pay contributions on a voluntary basis...

Under what conditions may I insure myself on a voluntary basis for pension purposes?

You may insure yourself on a voluntary basis if you reduce or interrupt your professional career.

If, during the 3 years preceding the interruption of the career, you were compulsorily insured [through your work, for example] under pension insurance and if you submit the application for voluntary insurance within 6 months following the interruption of the career, you have the possibility of insuring yourself on a voluntary basis regardless of the reason for the interruption. This is referred to as continued insurance.

If you do not fulfil these conditions, then you may insure yourself on a voluntary basis only if you have reduced or interrupted your professional activity for family reasons (periods of marriage or PACS, periods of raising a minor child, or provision of care to a dependent person). This is referred to as optional insurance.

Voluntary contributions are tax-deductible.

On what basis may I insure myself on a voluntary basis?

The amount on the basis of which you may insure yourself on a voluntary basis depends on your objective.

If you wish to insure yourself at the lowest possible cost so that the months during which you are not insured are taken into account as insured months, then it is in your interest to insure yourself at the minimum amount possible. For 5 years, the minimum on the basis of which you may insure yourself corresponds to one-third of the unskilled minimum wage. If you opt for this minimum, for the future pension calculation, all the months of voluntary insurance will be considered as if you had earned one-third of the minimum wage. After these 5 years, the minimum increases to the minimum wage.

If you continue to work, even part-time, the objective of voluntary insurance is rather to increase the amount of the future pension. The maximum on the basis of which you may insure yourself on a voluntary basis corre-sponds to the average of your 5 best annual incomes. If, during your 5 best years, you earned 8,000 euros/month on average, it is on the basis of this amount that you may insure yourself on a voluntary basis at the maximum.

You also have the possibility, according to your personal preferences and your financial means, of voluntarily contributing on any amount between the minimum and the maximum.

Voluntary contributions are tax-deductible.

I reduce my working time to 50%; can I continue to contribute as if I were working full-time?

Not necessarily. The amount on the basis of which you may insure yourself on a voluntary basis depends on the average of your 5 best annual incomes. If, for your current position, you earn more than 50% of the average of your 5 best annual incomes, you cannot contribute as if you were working full-time.

What is the cost of such voluntary insurance?

The cost of voluntary insurance corresponds to 17% of the amount on the basis of which you insure yourself on a voluntary basis.

Thus, if you insure yourself on the basis of one-third of the minimum wage, this costs 1/3 × 2,703.74 × 17% = 153.21 euros.

If you insure yourself on a voluntary basis on the basis of 5,000 euros, this costs 5,000 × 17% = 850 euros. Voluntary contributions are tax-deductible.

What steps must I take to conclude such a voluntary insurance?

To insure yourself on a voluntary basis, you must complete the relevant form and send it to the Joint Social Security Centre (CCSS − Centre commun de la sécurité sociale). In the event that the professional reduction or interruption takes place for reasons other than family reasons (periods of marriage or PACS, periods of raising a minor child, or provision of care to a dependent person), the application must be submitted within 6 months after the interruption.

Is the duration of this insurance limited in time?

No. Only the reduction of the minimum contribution basis to one-third of the minimum wage is limited to a period of 5 years.

I am interested in the purchase of periods...

What is meant by purchase of periods for pension purposes?

If you have reduced or interrupted your professional career for family reasons (periods of marriage or PACS, periods of raising a minor child, or provision of care to a dependent person), then you can retroactively purchase one year.

For a person who has merely reduced their professional activity, the purchase primarily allows the amount of the future pension to increase. On the other hand, for a person who was not insured for a given year, the purchase of that year allows both increasing the amount of the future pension and extending the insurance career by one additional year – potentially allowing them to retire earlier.

Contributions in the context of the purchase of insurance periods are tax-deductible.

Can I purchase any year for pension insurance purposes?

The years that can be purchased retroactively must be years during which you:

1. were married or in a PACS,
2. had minor children in your household,
3. provided care to a dependent person, or
4. were affiliated to a pension system with which Luxembourg does not have an agreement.

Can I purchase a year during which I did not yet live in Luxembourg?

In order for you to be able to purchase a year, you must, prior to the year in question, have already been affiliated to Luxembourg pension insurance, and you must already have been affiliated, in Luxembourg or elsewhere, for at least 12 months.

Can I purchase years situated in the future in order to retire earlier?

No, the purchase of insurance periods is only possible retroactively.

I have worked in several countries...

Do I have to submit a pension application in each country in which I have worked?

No, it is sufficient to submit the pension application in a single country – provided that the countries in which you were insured are either countries of the European Free Trade Association (EFTA, comprising the countries of the European Union, Switzerland, Liechtenstein, Iceland and Norway), or countries with which Luxembourg has a bilateral or multilateral agreement in the field of social security.

In which country should I submit a pension application?

The pension application is generally to be submitted to the pension fund, either of the last country in which you were insured under pension insurance, or of the country of residence. The pension fund handles the transfer of the application to the competent bodies of the other countries concerned.

Can I transfer my years from abroad to Luxembourg?

No, the years completed abroad are taken into account in Luxembourg only for the purpose of determining the Luxembourg pension. The rights potentially acquired in a country cannot be transferred to the Luxembourg pension fund.

However, in the event that you have worked in countries with which Luxembourg does not have an agreement in the field of social security, you may purchase these years in Luxembourg.

How are my years from abroad taken into account in Luxembourg?

At the time of retirement, all contribution periods completed either in a member country of the EFTA (i.e. the European Union, Iceland, Norway, Liechtenstein and Switzerland), or in a country with which Luxembourg has an agreement in the field of social security, are taken into account for determining your entitlement to the pension.

The effect on the amount of the pension is marginal, or even nil, but the taking into account of periods from abroad may be necessary to have the right to retire on an early old-age pension.

From which country will I receive my pension?

Three scenarios may arise:

• if you have contributed for less than one year in Luxembourg and the rest of your career in another country, it is the pension fund of that country which pays your pension in full;
• if you have completed part of your professional career in Luxembourg and the other part in another EU or EFTA country, you receive a pension from each State;
• if you have completed the entirety of your professional career in Luxembourg, the full amount of your pension is paid by the Luxembourg fund, even if you do not reside in the country.

When will I receive my pension from the different countries?

If you are entitled to your pension in one country, you do not automatically have this right in the other countries – the conditions for the entitlement, particularly those related to age, may differ from one country to another. It is therefore possible that you are entitled to your Luxembourg pension at the age of 57, but that you must wait until the age of 67 to receive your pension from another country.

The date if entitlement to the pension...

When can I retire?

If you have 40 years of compulsory periods (years of work, parental leave, sick leave, etc.), you can retire from the age of 57.

If you do not have 40 years of compulsory periods, but 40 years in total (including study periods, child-rais-ing periods and voluntary insurance, for example) after the age of 60, you can retire after having contributed, after that date, several additional months. If you have reached 40 years of insurance and 60 years of age after July 2026, you need a career extension of 1 month; if this is reached in 2027, the required extension is 2 months; in 2028, 4 months; in 2029, 6 months; and in 2030, 8 months.

If you do not accumulate 40 years of pension insurance, you can retire at the age of 65 if you have contributed for at least 10 years during your career.

Do I need to have worked 10 years in Luxembourg in order to be entitled to a pension?

No, the right to a Luxembourg pension is not linked to the condition that you have a career of 10 years in Luxembourg, but rather that you have contributed for 10 years in total. One year of contributions in Luxembourg, combined with 10 years of contributions in total, is sufficient to be entitled to a Luxembourg pension.

What is the impact of the pension reform on the date at which I am entitled to a pension?

Provided that you do not have 40 years of compulsory periods (years of work, parental leave, sick leave, etc.), but 40 years in total (including study periods, child-raising periods and voluntary insurance, for example), you will be required to extend your career in order to retire before the age of 65.

If you reach 60 years of age and 40 years of insurance after July 2026, you need an extension of 1 month; if this is reached in 2027, the required extension is 2 months; in 2028, 4 months; in 2029, 6 months; and in 2030, 8 months.

In my pension estimate request, I already received a date at which I can retire; am I still affected?

Yes, the information communicated by the CNAP in the pension estimate request is provided only on an indic-ative basis. Thus, even if you have already been communicated a date at which you could retire, you may be required to extend your career in order to retire on an early pension (See question ‘What is the impact of the pension reform on the date at which I am entitled to a pension?’).

Do I have to retire at the time when I become entitled to the pension?

No, you can freely decide the point from which you make use of your pension entitlement. Neither your employer nor the CNAP can impose early old-age pension upon you.

It should be noted, however, that at the age of 65 your employment contract terminates automatically and the employer is not obliged to retain you as an employee.

What steps must I take with regard to my employer?

The law provides that at the time you retire, your employment contract terminates automatically. It is therefore neither necessary nor recommended to resign from your employer.

Once the pension application has been accepted, it is sufficient for you to inform your employer of your retirement.

The amount of my pension...

Does it depend on my last years of work?

The amount of your pension depends on two elements: a lump-sum element which depends solely on the number of years of insurance, and a proportional element which depends on the sum of all your contributory incomes.

The proportional part therefore does not depend on your last salaries, but rather on the sum of all your salaries – the first year weighs as much as the last; the only element that matters is the sum of your contributory salaries.

Is it affected if I reduce my salary?

Yes. Given that the pension depends mainly on the sum of all your contributory incomes, a decrease in salary leads to a decrease in the future pension.

In order to get an idea of the potential loss linked to the salary reduction, you can consult our pension estimator and make a pension projection:

1. with your reduced salary and
2. with your higher salary, to compare the two results.

How does it evolve if I extend my career by one year?

Given that the pension depends mainly on the sum of all your contributory incomes, an extension of the career mechanically leads to an increase in the pension to which you will be entitled.

In order to get an idea of the pension linked to the career extension, you can consult our pension estimator and make a pension projection at two different dates to compare the two results.

I receive a pension and I continue to work...

How many hours of work are permitted without an impact on the pension?

The law does not provide for a maximum number of hours that you can work without a reduction of your pension.

However, the law provides for a maximum level of salary that you can earn and beyond which your pension is reduced. This maximum level depends on your professional career and in particular on the average of your 5 best annual incomes. At the time of communicating the level of pension, the CNAP also communicates to you the level of salary that you can earn in addition to your pension.

In any event, you can continue to earn at least one-third of the unskilled minimum wage in addition to your pension.

What is the tax treatment of this cumulation?

When you have two incomes subject to withholding tax at source, namely a salary and a pension, you will need a second tax card.

What impact will this work have on my pension?

On the salary portion, you will pay the normal contributions, as if you were not receiving a pension. The addition-al salary thus earned, which is also subject to pension insurance contributions, will be taken into account for a recalculation of your pension at the age of 65. At that point, your pension will be increased to take into account the extension of your career. After the age of 65, work will no longer have an impact on the level of the pension.

I receive a pension and I live abroad...

In which country must I pay taxes?

Taxes on pensions paid by the CNAP are, in principle, due in Luxembourg – even if you also receive a pension from your country of residence.

Double taxation treaties aim, in principle, to prevent your pension taxable in Luxembourg from also being taxed in your country of residence.

In which country must I pay social security contributions?

It depends on your personal situation. There are three different scenarios:

• If you receive only a Luxembourg pension, then you are affiliated to the Luxembourg healthcare insurance fund (CNS) and you are therefore subject to Luxembourg social security contributions.
• If you receive a Luxembourg pension and a pension from your country of residence, then you are affiliated to the competent healthcare insurance fund of your country of Consequently, you are not subject to Luxembourg social security contributions, but you are subject to the social security contributions due in your country of residence (including, where applicable, in respect of your Luxembourg pension).
• If you receive a Luxembourg pension and one or more pensions from other countries of the European Free Trade Association (EFTA, comprising the European Union, Switzerland, Liechtenstein, Iceland and Norway), without, however, receiving a pension from your country of residence, then you are affiliated in the country in which you were subject the longest to the legislation relating to healthcare insurance.

Can I continue to benefit from healthcare in Luxembourg?

If you pay your social security contributions in Luxembourg, you remain affiliated to the Luxembourg social security system and continue to benefit from CNS reimbursements.

Even if you are not affiliated with the CNS but were last employed in Luxembourg, you can continue to receive healthcare benefits in Luxembourg as long as this is a continuation of treatment that began before you started receiving your pension.

Furthermore, even if you are no longer affiliated with the CNS, as a pensioner who has worked as a cross-border worker in Luxembourg for at least two years during the five years preceding the start of your pension, you are entitled to receive healthcare benefits in Luxembourg provided that you reside in Germany, Belgium, France, Austria, Spain or Portugal.

I have become invalid...

Do I have to submit an invalidity pension application?

Yes. Even if the Social Security Medical Board (CMSS − Contrôle médical de la sécurité sociale) declares you invalid during a medical examination, the invalidity pension is not applied for automatically. You must therefore submit an application using the relevant form.

While it is not necessary to attach a medical file to your application form, once your application has been received the CNAP will send you a file (called R4) that your doctor must complete in order to justify your invalidity.

Does my invalidity pension correspond to a fixed percentage of my last salary?

No. The invalidity pension is calculated according to an approach that is very similar to that used to calculate old-age pensions. Depending on your career and on whether or not you have a career abroad, the level of your invalidity pension may be considerably lower than your last salary.

How is my invalidity pension determined?

The invalidity pension is calculated according to an approach that is very similar to that used to calculate old-age pensions. It depends

1. on the sum of all your contributable incomes,
2. on the number of years of insurance,
3. on your age, and
4. on your career (number of years abroad, career breaks, etc.).

For how long can I receive the invalidity pension?

In principle, and with the exception of invalidity pensions granted on a temporary basis, invalidity pensions are granted for life. They are paid until the age of 65, at which point they are converted into old-age pensions.

Can I combine a professional activity with my invalidity pension?

The payment of the invalidity pension is linked to the condition that you do not receive a salary that exceeds one-third of the unskilled minimum wage. If you exceed this limit, the invalidity pension is withdrawn from you and a request for reimbursement of pension by the CNAP may follow.

And what if I have worked in several countries?

If you have worked in several countries, each country is responsible on a pro-rata basis for your invalidity pension. Thus, you are, in principle, entitled to several invalidity pensions – one from each country in which you have worked.

As with the old-age pension application, it is sufficient to submit the invalidity pension application in the last country in which you have worked.

It should be noted that the invalidity criteria differ from one country to another, so that you may be declared invalid in Luxembourg but not in another country in which you have worked (or vice versa). Thus, it may be that you do not receive an invalidity pension for each country in which you have worked.

Regarding the survivor's pension...

In which case can I receive a survivor’s pension following the death of my spouse or my partner?

In principle, if you married or entered into a PACS at least one year before the death of your spouse, you are entitled to a survivor’s pension.

However, if the age difference between you and your deceased spouse is greater than 15 years, then the marriage or the PACS concluded during the period of receipt of a pension must have lasted at least 10 years.

Am I informed if I am entitled to a survivor’s pension?

In principle, no. It is essential to submit an application in order to receive the survivor’s pension.

Question 58. Am I entitled to a survivor’s pension in the event of the death of my cohabiting partner?

No. Regardless of the duration of the cohabitation and whether or not there are children, an informal union does not give rise to an entitlement to a survivor’s pension. Only marriage or PACS can generate the right to a survivor’s pension.

Is there a difference between a PACS and marriage in respect of the survivor’s pension?

No. For the purposes of the survivor’s pension, there is no difference between the two.

How much is the survivor’s pension resulting from the death of my spouse or partner?

The survivor’s pension is calculated on the basis of the pension of the deceased or, if the deceased was not yet retired, on the basis of the invalidity pension to which they would have been entitled. Depending on the pension of the deceased spouse, the survivor’s pension corresponds to 75–80% of that pension.

Under what conditions am I entitled to a survivor’s pension following the death of my former spouse or former partner?

If you have not remarried or entered into a new PACS before the death of your former spouse or former partner (within the meaning of the PACS), then you are entitled to a survivor’s pension by virtue of their death.

Can I exclude a former spouse or former partner from the benefit of my survivor’s pension?

No.

How is the survivor’s pension divided between the spouse and the former spouse?

In principle, the survivor’s pension resulting from the death of a person is divided between the spouse and the former spouse(s) eligible for the survivor’s pension proportionally to the duration of the marriages.

For how long can I receive the survivor’s pension?

The survivor’s pension for the surviving spouse and partner and/or former spouse and partner is granted for life. However, it ceases to be paid from the moment you enter into a new marriage or a new PACS.

Can I combine my survivor’s pension with my own income?

Yes, having your own income does not prevent the granting of the survivor’s pension. However, if the survivor’s pension exceeds, together with your other income, a certain level – which depends on the number of children – then the survivor’s pension may be reduced.

For how long are children entitled to a survivor’s pension?

In principle, children are entitled to a survivor’s pension until the age of 18. However, if they continue their studies, secondary or university, the survivor’s pension may be maintained until the age of 27.

What is the amount of the children’s orphan’s pension?

Just like the survivor’s pension of the spouse, the orphan’s pension is calculated on the basis of the pension of the deceased or, if they were not yet retired, on the basis of the invalidity pension to which they would have been entitled. The orphan’s pension corresponds to slightly more than 25% of the pension to which the deceased was entitled.

Is the children’s orphan’s pension deducted from the spouse’s survivor’s pension?

No. Children are, where applicable, entitled to their own survivor’s pension. It is not a part of the spouse’s survivor’s pension, but indeed an orphan’s pension belonging to the child.