Superannuated Pensions Scheme
Väljateenitud aastate pension
Coverage
Mandatory insurance
- Persons working in professions that are accompanied by loss or decrease of professional working ability prior to the standard retirement age of the statutory old age pension scheme: civil aviation employees and test pilots; underground and opencast miners; seafaring personnel of vessels of marine, river, and fishing fleets; textile industry employees; teachers; artists, certain medical personnel; bus, tram, and trolleybus drivers.
Financing
- The scheme is entirely tax-financed out of the general budget.
Administration
- The ‘Social Insurance Board’, which falls under the government of the Ministry of Social Affairs, manages the scheme.
Qualifying Conditions
Qualifying conditions1
- Civil aviation test pilots, underground and opencast workers, some groups of teachers in substitute homes and institutions for persons with special needs: minimum service period is 25 years without retirement age conditions.
- Workers in the textile industry: retirement age is 5 years prior to the standard retirement age of the statutory old age pension with a minimum insurance period of 20 years.
- Artists (types specified by the government): minimum insurance period of 20 years without specified retirement age.
- Bus, tram, or trolleybus drivers at urban regular lines: retirement age is 5 years prior to the standard retirement age of the statutory old age pension with a minimum insurance period of 25 years.
- Medical employees who get infected with the human immunodeficiency virus (AIDS) while carrying out their duties of employment: no conditions specified on retirement age and minimum insurance period.
Combining employment & retirement
- Termination of employment is usually a precondition for claiming pension benefits; claiming of pension benefits is compatible with other types of employment.
Benefits
Pension benefits
- Primarily based on years of service/length of insurance.
- No specification in law regarding fixed minimum and maximum amount of pension benefits.
Benefit calculation
- Basis for calculation: consists of the fixed base amount of the pension (EUR 215.5 in 2020), to which 90.6% of the value of a year of pensionable service are added for each qualifying year.
Taxation and social security contributions
- Overall tax exemption of total income (combined income from pension benefit and other earnings) of up to EUR 6,000/year (up to EUR 500/month); total income between EUR 500/month and EUR 2,100/month is subject to progressive income tax rate; total income higher than EUR 2,100/month is subject to income tax.
- Pension benefits are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Persons working in professions that are accompanied by loss or decrease of professional working ability prior to the standard retirement age of the statutory old age pension scheme: civil aviation employees and test pilots; underground and opencast miners; seafaring personnel of vessels of marine, river, and fishing fleets; textile industry employees; teachers; artists, certain medical personnel; bus, tram, and trolleybus drivers.
- The scheme is entirely tax-financed out of the general budget.
- The ‘Social Insurance Board’, which falls under the government of the Ministry of Social Affairs, manages the scheme.
Qualifying conditions1
- Civil aviation test pilots, underground and opencast workers, some groups of teachers in substitute homes and institutions for persons with special needs: minimum service period is 25 years without retirement age conditions.
- Workers in the textile industry: retirement age is 5 years prior to the standard retirement age of the statutory old age pension with a minimum insurance period of 20 years.
- Artists (types specified by the government): minimum insurance period of 20 years without specified retirement age.
- Bus, tram, or trolleybus drivers at urban regular lines: retirement age is 5 years prior to the standard retirement age of the statutory old age pension with a minimum insurance period of 25 years.
- Medical employees who get infected with the human immunodeficiency virus (AIDS) while carrying out their duties of employment: no conditions specified on retirement age and minimum insurance period.
Combining employment & retirement
- Termination of employment is usually a precondition for claiming pension benefits; claiming of pension benefits is compatible with other types of employment.
Pension benefits
- Primarily based on years of service/length of insurance.
- No specification in law regarding fixed minimum and maximum amount of pension benefits.
Benefit calculation
- Basis for calculation: consists of the fixed base amount of the pension (EUR 215.5 in 2020), to which 90.6% of the value of a year of pensionable service are added for each qualifying year.
Taxation and social security contributions
- Overall tax exemption of total income (combined income from pension benefit and other earnings) of up to EUR 6,000/year (up to EUR 500/month); total income between EUR 500/month and EUR 2,100/month is subject to progressive income tax rate; total income higher than EUR 2,100/month is subject to income tax.
- Pension benefits are not subject to social security contributions.
1 Part-time insurance periods are not qualifiable for the calculation of minimum insurance periods.
Legal Basis: Superannuated Pensions Act (Väljateenitud aastate pensionide seadus).