Retirement Pension Scheme for Lawyers and Solicitors from the Lawyers’ and Solicitors’ Pension Fund
Pensão de reforma da Caixa de Previdência dos Advogados e Solicitadores, CPAS
Coverage
Mandatory insurance
- Ordinary beneficiaries: lawyers and solicitors, incl. trainees of both professions.
Voluntary insurance
- Extraordinary beneficiaries: lawyers and solicitors who have their judicial inscriptions suspended or cancelled; foreign lawyers/solicitors of any nationality and national or foreign members of other juridical professions.
Financing
General finances
- Mainly PAYG-financed (repartição) from insurance contributions.
- Partly funded scheme based on the surplus of contributions, a ‘guarantee fund’ (Fundo de Garantia) was established that manages financial assets in order to ensure the sustainability of the scheme.
Contribution rates
- Contribution rate is 24% (as of 2020).
- The contributory income is divided into 26 contributory brackets (escalões contributivos): the reference is the so-called contributory index (Indexante Contributivo, IC), which is EUR 581.90 in 2020, with a correction factor of -10%. The contributory brackets vary between 25% (one quarter) of the contributory index and 17 times the contributory index.
- Contributions are paid by the insured person in full.
Administration
- The scheme is managed by the ‘Lawyers’ and Solicitors' Pension Fund’ (Caixa de Previdência dos Advogados e Solicitadores, CPAS).
Qualifying Conditions
Qualifying conditions
- The standard retirement age is 65, with a minimum contribution period of 15 years (in some cases, 10 years); one year equals 12 months with contribution payments; there is no contributory debt (i.e. all contributions should be paid in order to be eligible for pension benefits).
Early retirement
- Options for early retirement are not available.
Deferred retirement
- Retirement can be deferred. In that case, the sustainability factor applied will be more favourable, as it refers to the corresponding year in which the person could have retired.
Combining employment & retirement
- Termination of practicing the profession is not a precondition for claiming pension benefits.
- If retirement is combined with practicing the profession, pension entitlements will increase subsequently, as contribution payments will be mandatory until age 70.
Benefits
Pension payments
- Monthly pension benefits (paid 14 times a year) primarily dependent on the total amount of individual contribution payments and contribution period.
Benefit calculation
- The monthly amount of the retirement pension (PR) is based on following factors: years of affiliation (T), conventional earnings considering the entire contribution period (R), and the sustainability factor.
- The calculation formula is as follows: PR = (2% x T) x R (14 x T).
Taxation and social security contributions
- Pension benefits are subject to income tax according to the general tax rules (income category: H).
- Pension benefits are not subject to social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Ordinary beneficiaries: lawyers and solicitors, incl. trainees of both professions.
Voluntary insurance
- Extraordinary beneficiaries: lawyers and solicitors who have their judicial inscriptions suspended or cancelled; foreign lawyers/solicitors of any nationality and national or foreign members of other juridical professions.
General finances
- Mainly PAYG-financed (repartição) from insurance contributions.
- Partly funded scheme based on the surplus of contributions, a ‘guarantee fund’ (Fundo de Garantia) was established that manages financial assets in order to ensure the sustainability of the scheme.
Contribution rates
- Contribution rate is 24% (as of 2020).
- The contributory income is divided into 26 contributory brackets (escalões contributivos): the reference is the so-called contributory index (Indexante Contributivo, IC), which is EUR 581.90 in 2020, with a correction factor of -10%. The contributory brackets vary between 25% (one quarter) of the contributory index and 17 times the contributory index.
- Contributions are paid by the insured person in full.
- The scheme is managed by the ‘Lawyers’ and Solicitors' Pension Fund’ (Caixa de Previdência dos Advogados e Solicitadores, CPAS).
Qualifying conditions
- The standard retirement age is 65, with a minimum contribution period of 15 years (in some cases, 10 years); one year equals 12 months with contribution payments; there is no contributory debt (i.e. all contributions should be paid in order to be eligible for pension benefits).
Early retirement
- Options for early retirement are not available.
Deferred retirement
- Retirement can be deferred. In that case, the sustainability factor applied will be more favourable, as it refers to the corresponding year in which the person could have retired.
Combining employment & retirement
- Termination of practicing the profession is not a precondition for claiming pension benefits.
- If retirement is combined with practicing the profession, pension entitlements will increase subsequently, as contribution payments will be mandatory until age 70.
Pension payments
- Monthly pension benefits (paid 14 times a year) primarily dependent on the total amount of individual contribution payments and contribution period.
Benefit calculation
- The monthly amount of the retirement pension (PR) is based on following factors: years of affiliation (T), conventional earnings considering the entire contribution period (R), and the sustainability factor.
- The calculation formula is as follows: PR = (2% x T) x R (14 x T).
Taxation and social security contributions
- Pension benefits are subject to income tax according to the general tax rules (income category: H).
- Pension benefits are not subject to social security contributions.
Legal Basis: Decree-Law No. 119/2015, 29 June (New Regulation of CPAS/Novo Regulamento da Caixa de Previdência dos Advogados e Solicitadores; last amendment: Decree-Law No. 116/2018, 21 December); Personal Income Tax Code (CIRS – Código do Imposto sobre o Rendimento das Pessoas Singulares).