Decree Law No. 126-B/2017
- Issuer: Work, Solidarity and Social Security
- Diploma Type: Decree Law
- Number: 126-B/2017
- Pages: 5600-(14) a 5600-(16)
Summary in plain english
This decree-law defines new rules for taking early retirement and claiming a pension without being penalized for:
- workers who have made pension contributions for 48 years or more
- workers who have made pension contributions for 46 years or more and who started contributing at a young age — 14 or under.
This decree-law also:
- defines new rules for measuring the minimum period of contributions made to claim the pension (warranty period)
- defines new rules on how to apply differentiated pension accrual rates (how long someone contributed and the salary they received)
- determines that the sustainability factor (a reduction of the retirement pension amount) no longer applies to invalidity pensions when they become old age pensions
- determines that invalidity pensions will change to old age pensions in the month after the person reaches normal retirement age.
For this, it changes some rules on the:
- convergent scheme for retirement, which is the scheme for the beneficiaries of the General Pension Fund (Caixa Geral de Aposentações)
- protection of the disabled and elderly in the general social security scheme.
Old age pensions can be paid early, with no reduction of pension amounts, to the beneficiaries of the general social security scheme and the convergent scheme who:
- have made contributions for at least 48 years
- started contributing at the age of 14 or under, are at least 60 years old and have made contributions for 46 years.
Under the general social security scheme and the convergent scheme, workers make contributions when they work and receive assistance when they cannot work for health reasons or because they are too old.New rules for measuring contribution periods in other schemes
The periods a person contributed to other social protection schemes will be used:
- to assess the minimum period of contributions required to claim the pension
- to define the pension amount and the reductions or bonuses to apply
- for deciding if the conditions have been met for early access to old age pension or with bonuses
- for deciding if the conditions have been met for early access to old age pension in case of involuntary or long-term unemployment.
Other social protection schemes are schemes that guarantee disability and old age protection and are:
- general and special social security schemes
- pension fund or sickness fund schemes
- social security schemes in the banking sector
- foreign or international social security schemes.
Invalidity pensions will automatically change to old age pensions in the month after the pensioner reaches normal retirement age.No more penalties when changing from invalidity to old age pension and some other pensions
The sustainability factor (a reduction of the retirement pension amount) no longer applies when changing from invalidity to old age pension.
The sustainability factor and the penalty for early retirement do not apply to the pensions of beneficiaries:
- who are 60 years or older and have made contributions relevant for the pension calculation for at least 48 calendar years
- who are 60 years or older and have made contributions relevant for the pension calculation for at least 46 calendar years and started contributing for social security or general pension fund at age 14 or under.
This decree-law is intended to value workers who have contributed to their pensions for many years or who started at a very young age, allowing them to retire early without being penalised.When does it come into effect?
This decree-law comes into effect the day after it is published but the changes it introduces take place on 1 October 2017.
The rule defining that invalidity pensions will change to old age pensions the month after the pensioner reaches normal retirement age will only come into effect on 1 October 2018.
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