A pension comprises pensions that have accrued based on earlier employment contracts and the pension for projected pensionable service. The pension component for projected pensionable service means that pension also accrues from the start of the pension contingency year until retirement age for an old-age pension.

The pension component for projected pensionable service is added to your pension if your earnings during the ten years preceding disability, which come under earnings-related pension legislation, total no less than 15,746,08 euros (2011 level).

Earnings for projected pensionable service are calculated as the average earnings for the five years preceding the starting year of disability. The less you have earned during the last five years, the less the pension component for projected pensionable service forms of your pension. If you have had no earnings whatsoever, the pension does not include a pension component for projected pensionable service.

The annual accrual rate for a pension for projected pensionable service is determined according to the age when the pension contingency occurred and whether the Seafarer’s Pensions Act (MEL) special or general accrual rates apply in awarding the pension.

In order to safeguard the level of disability pensions for people who became incapacitated when young, an age-related lump-sum increase is added to disability pensions. The increase is made from the start of the calendar year five years from the start of the disability pension. The lump-sum increase will be made for the first time in 2010. The amount depends on the person’s age at the start of the year of the increase. Disability pension is increased by 25% for people aged between 24−31. After this, the amount decreases at a rate of 1.0% for each year of age. If the person is 55 years of age in the year of the increase, the increase is 1.0%.

Read more:

Seafarer’s Pensions Act (MEL) special and general accrual rates
How pension accrues for projected pensionable service