I am going to work part time. How will this affect my pension?
People who work do not necessarily work full time. A significant part of the working population has part-time jobs. Working part-time may be a choice, and may also be a way to avoid unemployment.
Some people work their entire career part-time, other people do so for a given period, for example when their children are young or while they take care of a parent who is ill. Statistically, a large part of future retired people will have worked part-time at one time or another during their career. It is therefore justifiable to ask the following question: How will part-time work affect my pension?
Impact on the statutory pension
If a person starts working part-time in order to avoid unemployment, this will not have a negative impact on his/her pension. He/she must remember to request the status of a part-time worker with retention of rights. Someone who works full time and for one reason or another wishes to work less hours, should first try to obtain a time credit (in the private sector), a career break (in the public service) or a thematic leave (all sectors). In most cases, part-time work is considered fully equivalent with respect to a person's pension. These are called equivalent periods. Equivalent periods are periods of absence during which the employee does not receive a salary, but which are "equivalent" to periods of work.
However, those who are not taken into consideration for this system will never receive as much for their pension as those who work full time. The pension of a part-time volunteer worker is therefore calculated based on the number of days actually worked and on the corresponding salary.
Full-time employment is the reference, even for people who work part time. The salary cap is limited according to work intensity: the hours worked are translated into full-time days. The hours worked are thus compared with the number of hours necessary for a full-time schedule.
...and on the age of retirement
Note that part-time work does not only have an impact on the amount of a person's pension. For someone who wishes to take an early retirement, part-time work also has an impact on the age of retirement. The number of days worked is a determining factor as regards the age of retirement. A "year" only counts towards a career as of one third of a full-time schedule (i.e. 104 days full time or 4 full monthsfor civil servants).
Impact on the supplementary pension
For someone who works part-time, the group insurance payments are reduced proportionately. If a person works a fifth less, he/she will pay four-fifths the amount of the group insurance premiums. This is also the case for plans with defined contributions as well as plans with defined benefits. Part-time workers will therefore receive less capital at the time of retirement.
