Teachers’ Pension Fund

Mandatory insurance

• All teachers (public and private).

General finances

• Mainly PAYG-financed from insurance contributions of the currently insured population.

Contribution rates

• Fixed share of monthly gross earnings (4.30%) covered by the employer.

• The National Social Security Institute (NSSI) manages the scheme and is accountable for its actions to the National Assembly.
• The National Revenue Agency collects contributions and transfers them to the NSSI.

• Fixed-term early pension (until reaching the statutory retirement age): statutory retirement age increases to 62 years until 2037 for women (born after 31/03/1975) and 2029 for men (born after 31/01/1967); minimum insurance periods: 25 years and 8 months (for women) and 30 years and 8 months (for men); negative (permanent) adjustments to fixed-term early pension benefits (0.1% per month).
• Old age pension supplement: early retirement can be deferred to the standard retirement age of the statutory old age pension scheme with a guaranteed permanent pension supplement proportional to the years of deferred retirement.

Pension benefits

• The scheme can provide either a fixed-term early pension (until reaching the standard retirement age of the statutory old age pension scheme) or an old age pension supplement (in case of deferred fixed-term early retirement).
• Fixed-term early pension: based on the (a) length of period of insurance while exercising the profession of teacher or pedagogue, (b) reference income for this period, (c) the individual coefficient, (d) the population average monthly insurance income for the 12 calendar months preceding the month of retirement.
• Old age pension supplement: 0.33% of the standard old age pension amount multiplied by the number of insurance periods acquired after reaching the fixed-term early retirement age.

Taxation and social security contributions

• Pension benefits are not subject to tax.  
• Contributions for health insurance are covered by the state budget.