Civil Servants’ Pension

• Civil servants (please note that employment as a civil servant is limited to certain positions in the Danish central government).

• The scheme is tax-financed out of the state budget.

• Payment Denmark (Udbetaling Danmark) calculates and pays pension benefits.

• No general compulsory retirement age (exception: special groups with assigned retirement ages).
• Civil servants are entitled to civil servants’ pension only if their termination of gainful activity is due to age, infirmity or any other cause that is not attributable to the civil servant.
• A civil servant is entitled to dismissal due to age from the end of the month in which the civil servant reaches the age for payment of pension.
• A maximum of 37 retirement years is considered in the pension calculation, even if the civil servant works longer. Part-time employment counts proportionally.
• Civil servants who have performed at least 10 years of service and who are dismissed for a reason other than age or infirmity, and which is not attributable to any fault of their own will receive a pension (‘Aktuel Pension’) calculated on the basis of the pensionable service accumulated on the date of dismissal.
• If a civil servant leaves the position before having attained the age of entitlement to pension, the person in question will receive a deferred pension (‘Opsat Pension’), which is calculated on the basis of the pensionable service accumulated on the date of resignation.

Pension benefits

• It is a lifelong supplement to the state pension.
• It is calculated based on the civil servant’s seniority and salary on the date of retirement.
• The maximum pension amount is achieved after 37 years.
• One year of full-time employment as a civil servant equals one calculated retirement year. For officials employed before 01/01/2012 the calculation starts after the age of 25. For officials employed after 01/01/2012, the calculation is based on the retirement years earned starting with the date of employment regardless of age.
• The civil servant’s spouse and children under the age of 21 are secured a pension if the civil servant dies.

Taxation and social security contributions

• Pension benefits are subject to income tax.
• Benefits are not subject to social security contributions.