When you start in the European Institutions, you might already have worked somewhere else and gained pension rights that you can transfer into our pension scheme of European officials (PSEO), a so-called transfer-in. The same is possible or even compulsory when you leave the Institutions, a so-called transfer-out. For a transfer-in, your previous pension scheme transfers a certain amount of money to the PSEO: in return, you get credited with some more time that is used for the calculation of your future pension paid by the PSEO. For a transfer-out, the PSEO calculates what your accumulated ‘years’ are worth and transfers this sum to your next pension scheme.
The so-called conversion coefficients play a central role in these calculations. The legal basis for these coefficients are the general implementing provisions for Articles 11 and 12 of Annex VIII to the Staff Regulations on the transfer of pension rights. Eurostat updates these coefficients whenever the interest rate used for the pension contribution calculation changes (Annex VIII, Article 8 of the Staff Regulations). The latest update of the interest rate happened at the end of 2018, so it is time to update the conversion coefficients as well. The decision has already gone through the Social Dialogue, so we expect the Commission to adopt the conversion coefficients soon.
The previous update in 2011 introduced some big changes and we know that many colleagues were surprised by the negative impact at the time. Those of you who are planning a transfer-in in the near future will be relieved to hear that such big changes will not happen this time. Indeed, the changes to the coefficients are quite limited this time.
Nonetheless, we urge you to consider all the consequences a transfer-in will have. You can (and should!) use the pension calculator that the Paymasters’ Office (PMO) makes available to check the possible influence of your decision on your future pension.
As always, if you have any questions, feel free to contact us.