New pension legislation to be revised
The government has proposed that the package of legislation on pension reform, due to start to take effect from the beginning of 2005 be revised. The proposed changes concern the law on private sector employment pensions, which will come into force in 2007.
The changes to the law are to clarify such things as the effect of earnings on pensions. Earnings will be taken into account up to the end of the previous month before the start of the old age pension. So-called non-salaried periods covered by social insurance benefits will nevertheless be taken into account from the end of the previous calendar year at the start of pension entitlement. In the work disability pension income from both earnings and social insurance will be taken into account up to the end of the previous calendar year.
Because the statutory employment pension system does not include the work disability pension beyond the age of 63, the law will be revised concerning the onset of the old age pension. From the beginning of 2005 people born in or before 1946 will be able to receive old age pension when they turn 63. In addition, clarifications will be made concerning regulations for people who are employed for periods when they receive a work disability pension.
The revision of the law will also add clarifications to the situation of people under the seafarers pension system.